Disposable income increased by almost $200B between 2020 & 2024 – Govt

…says despite criticisms measures have been pivotal in mitigating economic challenges

In a comprehensive review of the budgets spanning from 2020 to 2024, the People’s Progressive Party/Civic (PPP/C) Government has underscored its steadfast dedication to bolstering the nation’s economic vitality and enhancing the standard of living for all Guyanese.
On Saturday, in denouncing what it described as the malicious and unfounded claims continuously being propagated that the Administration has failed to implement critical measures to increase the disposable income of the Guyanese people, the Government said that over $200 billion has been injected into the economy through a series of strategic measures aimed at providing relief and fostering growth, marking a significant milestone in the Government’s commitment to citizens.
According to the Government, since assuming office in 2020, the PPP/C Administration has implemented a comprehensive array of fiscal policies and relief initiatives tailored to address immediate needs while laying a robust foundation for sustainable economic development. Each annual budget, it said, has been meticulously crafted to navigate challenges such as the COVID-19 pandemic and global economic fluctuations, while prioritising the well-being of households and fostering resilience across sectors.
To demonstrate this, the Government said that Budget 2020 responded swiftly to the challenges posed by COVID-19, allocating over $40 billion towards relief measures. These included the reversal of Value Added Tax (VAT) on essential services like electricity and water, a $25,000 COVID-19 relief voucher per household, and VAT exemptions on critical sectors such as housing and healthcare. These initiatives provided immediate financial relief and stimulated economic activity during a period of global uncertainty.

Further, the Government said that in Budget 2021, it allocated an additional $10 billion towards measures aimed at reducing the cost of living. This, it stated, included restoring zero-rated status to essential food items, reducing water tariffs, and introducing tax concessions to spur local production and investment. These measures aimed to bolster disposable income and economic resilience.
In 2022, it stated that recognising continued economic challenges, the Administration then introduced measures totalling over $25 billion. These included significant cost-of-living adjustments, reductions in import duties and excise taxes, and targeted support for vulnerable communities. Notably, it pointed, the reduction of the excise tax on fuel to zero provided substantial savings for consumers and businesses alike.
Meanwhile, the 2023 budget allocated over $50 billion towards initiatives aimed at easing financial burdens and driving economic growth, the Government said, adding that measures included further reductions in freight charges, increases in the income tax threshold, and enhancements to social support programmes benefiting various sectors of the population.
The Government said in 2024, in the latest budget, it has committed over $70 billion to sustain and expand its efforts. These includes maintaining zero per cent excise tax on petroleum products, enhancing social grants such as the “Because We Care” cash grant, and increasing investments in critical sectors like education and public assistance. The budget also raises the income tax threshold to $100,000, benefiting thousands of workers across the country.
A breakdown of this year’s Budget shows that maintaining the zero per cent excise tax on petroleum products since March 2022 alone has cost the State some $40 billion annually. Another $10 billion went to the part-time job programme and $7 billion towards cost-of-living measures.
With regard to the Old Age Pension, this was moved from $20,500 in 2020 to $36,000 per month this year – reflecting a 75 per cent increase under the PPP/C Administration. Some 76,000 persons are benefiting from this measure, placing an additional $2.7 billion of disposable income in their hands.
Moreover, Pubic Assistance moves from $9000 in 2020 to $19,000 in 2024, giving over 35,000 citizens another $1.2 billion in additional disposable income.

The “Because We Care” cash grant of $40,000 per child this year – a substantial increase from $15,000 in 2021 when it was reinstated by the PPP – coupled with the $5000 uniform allowance will see a disbursement of a whopping $9.2 billion in 2024. Over the past four years, a total of $26.9 billion in the cash grants have been disbursed to schoolchildren under the programme.
As a result of the threshold increase, some 13,000 persons were removed from paying income taxes and this will result in a $4.8 billion increase in disposable income of workers. Meanwhile, another $4 billion was set aside for the Guyana Online Academy of Learning (GOAL) scholarships. In previous years, the allocations for this initiative were: $1 billion in 2021, $1.3 billion in 2022, and $1.8 billion in 2023.
Moreover, Government rolled out the first phase of the University of Guyana student loan write-off exercise to the tune of $11 billion, benefiting some 13,000 individuals.
Collectively, these budgets have injected over $195 billion directly into the pockets of Guyanese citizens, significantly enhancing disposable incomes and overall quality of life, the Government said on Saturday.
According to the statement, despite criticisms from certain quarters, the Government’s measures have been pivotal in mitigating economic challenges and fostering a resilient economic environment poised for future growth. The Administration remains committed to inclusive economic development and continues to implement policies aimed at fortifying the nation’s economic foundation.
The ongoing support for households, businesses, and key sectors, it pointed out, underscores a proactive approach to addressing the evolving needs of the population while laying the groundwork for sustained prosperity.