–as Finance Minister unveils sweeping measures to cushion cost of living, support vulnerable groups

OUTLINING an expansive suite of measures under Budget 2026 aimed at accelerating economic diversification, reducing the cost of living and significantly increasing disposable income, Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh has said that the People’s Progressive Party/Civic (PPP/C) government is moving into a new phase of development.
During his presentation of this year’s fiscal package to the National Assembly on Monday, Dr. Singh noted that the measures reflect the recovery and stabilisation of the economy into a new phase of inclusive, diversified growth, with a strong emphasis on job creation, income generation and long-term economic resilience.
He pointed out that since returning to office in 2020, the government has pursued deliberate policies to diversify the economy, reduce the cost of living and expand opportunities for citizens, laying the foundation for the new incentives.
“Over the last five years, government has made conscious investments to diversify the economy, reduce the cost of living, expand access to jobs and enhance the quality of life for all our citizens. Budget 2026 builds on these five years of steady progress and ushers in a new phase of inclusive, diversified growth through creating more opportunities for accelerated job creation, income generation, and human capital development,” the Finance Minister said.
DRIVING ECONOMIC DIVERSIFICATION AND PRODUCTION
The government, in 2026, will introduce Special Development Zones with fiscal incentives intended to attract investment into strategically selected locations, while complementing anticipated reductions in electricity costs that are expected to significantly improve the competitiveness of manufacturing operations when the flagship gas to shore project comes on stream.
In addition to this, the 2026 budget makes provision for the removal of corporate taxes on agriculture and agro-processing which is expected to free up resources for reinvestment, supporting increased production.
The fiscal package also creates space for the expansion of export allowances to include value-added forestry products and the removal of VAT on locally made furniture and jewellery.
This, the Finance Minister said, will lower production costs, incentivise downstream processing and strengthen the capacity of local industries to compete in regional and international markets.
COST OF LIVING AND MORE DISPOSBALE INCOME
To ease cost-of-living pressures and increase disposable income, Dr. Singh said the government will maintain the zero percent excise tax on fuel, a measure in place since 2022 which has helped shield households from global trends. Budget 2026 will extend relief too on freight charges used to calculate import taxes.
Meanwhile, an additional $9 billion has been set aside in 2026 for further cost-of-living support.
Assistance for children and the elderly will also be expanded, with the Because We Care grant increasing to $60,000 per child, the introduction of a $20,000 annual transportation grant for school children, together with the $5000 uniform voucher will see each child receiving $85,000.
This will reflect in an estimated $12.4 billion being transferred to parents under the Because We Care programme.
Support will also continue to cover the examination fees for Caribbean Secondary Education Certificate (CSEC) and Caribbean Advanced Proficiency Examination (CAPE) benefitting some 14,000 students.
The elderly will see an increase in old age pension to $46,000 from $41,000 per month, and benefit from an annual transportation grant of $20,000, providing an additional injection of $1.9 billion in support.
Measures to raise disposable income include higher stipends for community-based workers, the return of the $100,000 national cash grant for adults 18 and above, the removal of net property tax on individuals and an increase in the income tax threshold to $140,000 per month; Dr. Singh estimated that these measures will place more than $100 billion into the hands of citizens.