Breaking its own record, the People’s Progressive/Party Civic (PPP/C) Government on Monday announced its largest-ever budget in Guyana’s history, mapping out $1.14 trillion in transformational programmes and policies for 2024.
Dr Ashni Singh, Senior Minister within the Office of the President with responsibility for Finance, presented the massive fiscal plan, crafted under the theme: Staying the Course, Building Prosperity for All.
Finance Minister Dr Ashni Singh delivering the budget presentation in the National Assembly
Financed again by zero new taxes, this National Budget is 46 percent larger than last year’s 741.9 billion. It is built on continuing the rollout of initiatives to improve the lives of Guyanese and, most importantly, increase the ‘generational household wealth’ across the country.
The Finance Minister announced a menu of measures as he laid before the House the Budget that is intended to put in excess of $70 billion in relief for persons and business. The income tax threshold has been increased from $85,000 to $100,000. With this jump, taxpayers in the public and private sectors will see $4.8 billion going directly to improve their disposable incomes.
Meanwhile, the “Because We Care” cash grant has been moved from $35,000 to $45,000 per child, benefitting 205,000 school-aged children in both public and private schools, and putting an overall $9.2 billion in the hands of parents.
Old age pension has now been increased from $33,000 to $36,000. The Finance Minister shared that this measure will place an additional $2.7 billion of disposable income in the hands of some 76,000 old-age pensioners. Since the resumption of office by the PPP/C Government, old age pension has increased significantly from $20,500 in 2020.
Currently, the minimum pension paid by NIS is $35,000 monthly, but with effect from this month, this sum has been revised to $43,075, which will result in $2.6 billion in additional disposable income going to the benefit of over 27,000 persons.
Meanwhile, public assistance has been increased from $16,000 to $19,000, with 35,000 persons with disabilities standing to benefit from an additional $1.2 billion. Back in 2020, this sum stood at a mere $9,000, and this new sum represents more than 100 percent increase since the Ali-led administration took office.
To improve access to health services for all citizens, over 205,000 students and 76,000 pensioners will receive a $3,000 voucher towards the cost of an eye test. This measure comes at a cost of over $840 million.
Additionally, for those from these categories who require spectacles, a $15,000 voucher towards the cost of acquisition will be made available. In the case of school children and pensioners living in the hinterland, where testing facilities might not be readily accessible, an alternative arrangement will be put in place. The total cost of this intervention aggregates to $1.8 billion.
Supporting early detection of cervical cancer will see Government providing a voucher of $8,000 for women between the ages of 21 and 65, to meet the cost of cervical cancer testing. This intervention will cost an estimated $2.8 billion.
In a move to ease the cost of living, Government has indicated its intention to absorb the impact of elevated fuel prices. The measure which has been maintained with zero percent excise tax on petroleum products will be kept in place. It is estimated that this measure will see Government foregoing some $40 billion in revenue annually.
Government had launched, in 2022, the part-time jobs programme by which one person per household was able to earn $40,000 by working in public offices in close proximity to their homes. In 2023, over 15,000 persons were employed through this programme, and in 2024, this programme will be expanded with an allocation of over $10 billion.
Among the measures in keeping with its manifesto promise to provide a pathway for debt write-off for persons with outstanding student loans, Government will embark on the first phase of this exercise for the University of Guyana (UG).
Provisions were also made in the 2024 National Budget for removal of duty and VAT on sports and technological equipment and firefighting apparatus; reducing the cost of life and medical insurance; and supporting small and medium scale enterprises.
As he wrapped up his almost six-hour presentation, Dr Singh voiced, “Budget 2024 comes to this Honourable House against the backdrop of very challenging circumstances for our country and for the global economy of which we are very much a part, the age of the global polycrisis perhaps.”
He added, “Notwithstanding the interlocking and overlapping global crises we face, given the bold agenda our Government is implementing, as I have outlined in Budget 2024, we in Guyana are also living in what would validly be described as the age of opportunity.
This is not by accident. This PPP/C Government has remained firm in our resolve to ensure that we navigate these testing times, containing as far as we possibly can any adverse domestic fallout from the global setting, while also ensuring that the transformation of our country continues apace and that the improvement of the wellbeing of the Guyanese people is realised in the shortest possible time.
Allocations
Whopping injections have been made for 2024 to fund the country’s infrastructural boom, social programmes, and traditional sectors.
This was reflected in the $97.6 billion budgeted to advance and catalyse agriculture development through the promotion of investments in large-scale cultivation; promoting increased aquaculture and shrimp farming; modernizing, upgrading and strengthening drainage and irrigation and farm-to-market infrastructure and support services.
Further, Government will commission a tissue culture laboratory which is expected to produce 1,000,000 plantlets per year. This increased production would facilitate ready availability and easy access of planting materials to supply farmers in crops such as citrus, pineapple, breadfruit, coconut, ginger, turmeric, plantains and bananas, among others.
Livestock will see an injection of $1.5 billion, while another $1.2 billion has been earmarked for fisheries and aquaculture.
In the energy sector, generating and delivering adequate electricity to meet the need, while reducing the cost of electricity by half, will come at a price tag of the budgeted $95.7 billion. Some $80 billion will be spent on the gas-to-energy project; $1.3 billion will be used to complete mini-hydro facilities at Kumu and Moco-Moco, along with provisions for the Amaila Falls Hydropower project, among others.
Additionally, modernising the transport network will see construction of the Corentyne River bridge with Suriname, as well as studies to determine the possibility of a new bridge across the Berbice River. Construction will advance on the new Demerara River Crossing with a budgeted $19.7 billion.
With several key highways currently being constructed, or being in the process of commencement, the infrastructure sector will receive a sizable $204.1 billion – the largest for any sector.
Major transformation is also earmarked for the health sector, which received $129.8 billion from the 2024 budget. This is in pursuit of a ‘resilient’ sector which makes available a comprehensive and widely accessible suite of healthcare services to all citizens of this country. The funds will support expansion of primary healthcare; upgrade of health facilities and expansion of diagnostic services countrywide; adequate and timely procurement and supply of pharmaceuticals and medical supplies; expansion of the range of medical personnel and services; expansion of tertiary health care, including partnerships with the private sector; and incentives for the private sector to upgrade facilities.
This year, the education sector has been allocated $135.2 billion; some $28.7 billion will be spent to upgrade school infrastructure. The Government will spend $16 billion to build out new secondary schools at locations such as Aishalton, Christianburg, Jawalla, Kopinang, and Micobie.
In 2024, construction will also begin on primary schools at Augsbury, Kuribrong, Lake Mainstay, Pennack and Red Creek at a cost of $3.1 billion, while over $3 billion has been budgeted for nursery school buildings.
The Housing sector will execute its work programme to the tune of $78 billion, with Government well on its way of reaching the 50,000 house-lots target for its first term in office. Water supply and distribution will also be extended to new communities.
A total of $16.8 billion was spent last year on water and sanitisation, and $22.5 billion is budgeted for further advancements in 2024.
For Amerindian and Hinterland Development, $9 billion has been budgeted for targeted developmental programmes aimed at strengthening land tenure, promoting the development of a sustainable village economy in each village, maintaining and upgrading infrastructure, and enhancing the social welfare of our first peoples.
Coupled with injections in every sector, the Finance Minister shared that this period in the country’s history is seen as one to harness and consolidate national prosperity, which will translate into community prosperity, and ultimately household prosperity.
“First and foremost, we are building a Guyana where every single Guyanese family will be in a position to meet their most basic needs relative to a minimum threshold required to enjoy a decent life. I hasten to add that this threshold is not to be viewed through narrow and simplistic monetary and fixed income lenses, but instead is to be viewed from a multi-dimensional perspective,” the Minister relayed. (Rupa Seenaraine)
