Budget 2021 has attracted praise from the business community including the Private Sector Commission (PSC), Guyana Manufacturing and Services Association (GMSA), American Chamber of Commerce (AmCham) Guyana, with the policies contained in the $383.1 billion budget being lauded for their economically and Private Sector friendly measures.

The budget, which amounted to $383.1 billion, was presented by Finance Minister Dr Ashni Singh on Friday. In a statement on Saturday, the PSC lauded the budget for being both pro-business and pro-working class, with the creation of new social programmes.
“The PSC, prior to the budget consultation, would have made written submissions regarding its proposals for the national budget 2021. The PSC is pleased to see that those proposed measures were largely considered and reflected in the national budget for 2021,” a statement from the Private Sector body stated.
It noted that the budget is indeed a people-focused budget, which is healthy to facilitate broad-based and inclusive growth of the economy in terms of job creation, encouraging private investments and more entrepreneurial activities. “Dr Singh should also be commended that while being pro-business, this budget is also pro-working class and factors in a number of new social programs,” the statement read.

Among the budget highlights the PSC identified were the $6 billion allocation for housing, $53.5 billion for health and $15.3 billion for public security. The budget also includes $25.6 billion for public infrastructure and has removed Value Added Tax and duty on data and ATVs for use in the hinterland.
“Budget 2021 estimates totalled $383.1 billion; $22.6 billion allocated for the agriculture sector, Zero-rating of construction and homeownership (building materials), reduction of duty on industrial cement from 15 per cent to 5 per cent, increase in low-income mortgage ceiling from $10 million to $12 million, removal of VAT on data for residential and individual use, removal of duty from ATVs for use in hinterland,” the Commission said.
According to the PSC, Budget 2021 also provided for the “reinstating of the capital gains tax whereby the sale of assets that were owned for more than 25 years will not attract capital gains tax will not attract capital gains on their disposal and restoring VAT zero rate on basic food items and household necessities.”
The PSC also noted that the budget seeks to fuel the construction boom, by including policies like the resuscitation of the housing drive and targeting 10,000 house lots for 2021. Added to this is the massive infrastructure development that includes hotels, new roads and bridges, shore-based facilities and public and private infrastructure.
