Govt measures shielding citizens from billions in fuel, utility, food, other costs – Pres Ali

…as Guyana records lowest inflation in region

Noting that Guyana has the lowest inflation rate in the Latin American and Caribbean region, President Dr Irfaan Ali highlighted that Budget 2026 continues to ease cost-of-living pressures, with the Government absorbing billions of dollars in costs that would otherwise be passed on to consumers.
In a live broadcast on Wednesday, the President reminded that since the People’s Progressive Party/Civic (PPP/C) Administration returned to office, it began to address issues relating to the rising cost of living.
“We removed VAT on fertilisers, agrochemicals, and pesticides that directly benefit every single farmer, whether you are small, medium, or large scale. We removed VAT on machinery and equipment used by farmers using mining. We reversed the 220 per cent increase in D&I charges and the 600 per cent increase in land rental that was imposed upon farmers by the then APNU+AFC Government. So, we have demonstrated in all of our budgets and all of our policies strategies that are focused heavily on reducing costs,” he outlined.
The President posited that Budget 2026 carries on this tradition.
For instance, he explained that increasing local food production is a key way to ease cost-of-living pressures, an area in which the Government continues to invest heavily.
“The investment we are making in Budget 2026 will open up tens of thousands of acres of new farmlands. Who will benefit from these farmlands? It is the ordinary farmers… We removed corporate taxes on interest earned by banks on the poultry sector so that the cost of production will go down so that our farmers can benefit whilst the general population will benefit from lower local prices. We went a step further in Budget 2026 by removing all taxes on agriculture and agro-processing. All of this would lead to greater confidence in agriculture, greater lending, lower cost of production, greater access to capital, and all will lead to greater production, higher levels of production, which will result in lower costs and greater supply,” President Ali noted.
He further highlighted that citizens are saving as a result of the Government’s decision to keep freight charges at pre-pandemic levels for the calculation of import taxes. This was done in 2021 and has been extended every year since. Again, Budget 2026 caters for another 12-month extension.
He noted that citizens are also saving as a result of the Government’s measure, first introduced in 2022 and which will be continued this year, to maintain a zero per cent excise tax on petroleum products, forgoing an estimated $100 billion in annual revenue.
Additionally, the President pointed out that citizens are benefiting from the Government’s interventions to keep water and electricity prices stable.
“We have not increased electricity and water tariffs. We have also given back the subsidy to old-age pensioners, and Budget 2026 will continue to finance this. That is close to $50-$60 billion of investment in the water sector alone and billions of dollars over the last five years on electricity and water subsidies. The removal of VAT on electricity and water and medical supplies is costing us about $4 billion annually. Those are expenditures we are taking away from the ordinary Guyanese,” he outlined.
President Ali said other measures implemented to ease cost of living pressures include making homeownership more affordable, the reintroduction of the one-month tax-free bonus for discipline services ranks, and the various interventions in the education sector, including the “Because We Care” cash grant.
Budget 2026 specifically sets aside $9 billion to fund programmes aimed at reducing the cost of living pressures, particularly on vulnerable groups across the country.
Meanwhile, President Ali also highlighted that inflation in the Latin American and Caribbean region is estimated at 6.5 per cent in 2025, but Guyana’s was recorded at 2.5 per cent – the lowest in the region.
This year, the inflation target is 2.5 per cent, as the Government intends to maintain exchange rate stability while supporting continued expansion in private sector credit and domestic economic activity.
“Budget 2026 not only introduces new measures. Budget 2026 is absorbing hundreds of billions of dollars of measures we have already implemented to ensure those benefits continue for the Guyanese families. 95 per cent of budgets globally are cutting back on measures and are pulling back measures like we would have introduced here in Guyana. We are continuing the financing of those measures while at the same time we build out new measures to create more wealth, expand more income opportunity and build stronger families,” President Ali emphasised.