Budget 2025 advances progress, sets our people on a path to improved quality of life

Dear Editor,
The Federation of Independent Trade Unions of Guyana (FITUG) – the leading advocate for organized labour in our nation – firmly believes that Budget 2025 delivers exceptional benefits and gains for ordinary people, especially the working class and their families. This budget, the largest in our history, exceeds expectations by introducing and enhancing an extensive array of benefits. It makes a significant impact across every sector and aspect of life, aligning significantly with the Government’s commitment to elevating the lives of our citizens.
The Federation acknowledges the positive steps being taken to enhance the well-being of our country’s working people and their families. We are particularly pleased to see the proposed simultaneous increase in the income tax threshold and a reduction in the income tax rate. These measures, previously put forward by the FITUG, represent a constructive approach to the 2025 Budget. Together, these initiatives have further empowered workers by returning over $12.1 billion to their hands.
The introduction of the tax adjustment for workers with children is a welcome development. This measure, proposed by FITUG, reflects the Administration’s commitment to listening and considering practical solutions. It stands to benefit our workers significantly by providing them with much-needed financial relief. Additionally, including tax exemptions on earnings from overtime and second jobs enables workers to retain more of their hard-earned income from their extra efforts. Collectively, these initiatives represent a positive step forward, enhancing the spending power of workers by an estimated $2.1 billion.
We genuinely appreciate the various proposals that enhance our workers’ well-being. One highlight is improving the “Because We Care” cash grant for all school-aged children, which provides essential support for our hardworking parents. Additionally, the decision to eliminate tuition and other fees for students in tertiary institutions is a significant benefit for working-class families and young Guyanese. These initiatives reflect a commitment to easing the burdens on those who strive for a better future.
The improvements in the old age pension and public assistance, which have seen a remarkable 100 percent increase since 2020, represent significant progress in a relatively short time. These benefits play a vital role in supporting some of the most vulnerable members of our society, and it is heartening to see such strides being made. We are also genuinely encouraged by the introduction of a universal health voucher, which builds on the ongoing commitment to fostering a healthy society. Additionally, the support for newborn babies is a noteworthy initiative that will undoubtedly provide much-needed assistance to new and growing families during this pivotal time.
The budget presents a constructive approach to benefiting the working class through several key measures. The ongoing initiatives to manage fuel costs are commendable, serving as a vital step in addressing the challenges of rising living expenses amidst fuel price fluctuations. Additionally, the strategy to compute import duties based on pre-pandemic rates is a proactive measure designed to alleviate the burden of increasing freight charges and stabilize the market against external price variations. Notably, the allocation of $9 billion for targeted efforts to tackle the cost of living signals a commitment to developing effective interventions. This framework provides a solid foundation for fostering economic resilience and improving the quality of life for our communities.
The investment programme outlined in Budget 2025 has the potential to enhance the quality of life for our people significantly. The upcoming completion of the natural gas power plant and its attendant slashing of electricity tariffs is set to increase disposable income for many. Additionally, ongoing investments in health centers, hospitals, schools, roads, bridges, and highways will simplify daily life and expand access to government services and facilities, ultimately fostering a stronger and more resilient society.
Budget 2025 has undoubtedly made a significant impact on our country’s workers. The FITUG stands firmly behind it, believing that the policies, plans, and programmes will pave the way for a brighter future for all Guyanese. Indeed, this Budget accelerates the progress made since August 2020 and sets us on a transformative journey toward more significant development.

Sincerely,
Federation of
Independent Trade
Unions of Guyana
(FITUG)