Budget 2026 balances immediate relief with long-term poverty solutions – Economist

While critics of Budget 2026 have questioned whether the $1.5 trillion budget plan does enough to lift ordinary citizens out of poverty, experts say the impact is measured not in months, but over years. According to respected economist Richard Rambarran, in an interview on the Starting Point Podcast on Sunday, the true value of Budget 2026 lies in the long term, transformative investments in supports. “I’m talking about earning capacity, not just the temporary measures that may bring a little relief – let’s say with a cash grant or so for a monthly basis – but true wealth creation. So it’s important to understand or couch the budget within the context of broader economic planning and broader developmental policy,” he explained. Budget 2026 continues to fund major infrastructure projects aimed at reducing rural-urban divides and expanding access to schools, hospitals and transportation. Projects such as fixed-span bridges and highways are designed to save citizens hours of travel while improving commerce and connectivity. “Transformative infrastructure using revenues that this country has to be able to support intergenerational wealth and act as an equaliser of rural-urban divides and ensure that everyone has access to good public goods or good public services, as is used in common parlance,” he added. Beyond infrastructure, Budget 2026 maintains policies that help families manage day-to-day expenses. Measures such as zero excise tax on fuel and the reversion of shipping costs to pre-pandemic levels may seem minor, but Rambarran says they are crucial in keeping household budgets stable. Rambarran also stressed the importance of viewing the budget as part of a broader, multi-year strategy. One-off cash transfers can stimulate spending temporarily, but they are difficult to sustain and can lead to inflationary pressures. Capital investments, on the other hand, have long-lasting benefits for both current and future generations. “It’s important in my view to understand that multi-year planning, multi-year execution is absolutely necessary to facilitate and foster development in the way that is incremental, development in the way that is non-disruptive to the economy and does not engender an economy becoming imbalanced, if you will,” he said. The economist emphasised that while the results of Budget 2026 may not be immediate, its focus on strategic infrastructure, cost-of-living measures and multi-year planning aims to create lasting opportunities. For Guyana, the real measure of success will be the doors these investments open for future generations.