January 15 is Budget Day

…as Govt sets to deliver budget focused on social, economic development
…budget 2024 will increase disposable income – Finance Minister

The Finance Ministry has announced January 15 as Budget Day, amid the consultations it continues to do with relevant stakeholders in the lead up to what is likely to be the biggest budget yet and one the Government says will be focused on social and economic development.
On Monday, Finance Minister Dr Ashni Singh met with various representatives from the private sector, led by Chairman of the Private Sector Commission (PSC), Komal Singh, as part of the customary budget consultations.
“During the discussion, Dr Singh reiterated the Government’s appreciation of the strong collaboration and the ongoing engagement with the private sector throughout the year,” a statement from the Ministry said.

It was explained that over the last several months, the Government met and held consultations with various stakeholders including Trade Unions, Government Ministries, other agencies and civil society.
According to the Ministry, Budget 2024 “aligns with the People’s Progressive Party/Civic’s (PPP/C) Administration’s manifesto of 2020, which laid the foundation for prosperity for all. It will be shaped upon two primary pillars, which include the implementation of mechanisms aimed at increasing disposable income into the hands of citizens and the development of Guyana’s economic and social infrastructure.”
In October, Dr Singh and Prime Minister, Retired Brigadier Mark Phillips had led a series of budget consultations with several Trade Unions from across the country, at the Arthur Chung Conference Centre (ACCC).
The participating Unions had included the Guyana Agricultural & General Workers Union (GAWU), the National Association of Agricultural, Commercial & Industrial Employees (NAACIE), the Clerical & Commercial Workers Union (CCWU), and Guyana Labour Union (GLU), the Guyana Teachers Union (GTU), the Guyana Local Government Officers Union (GLGOU) and the General Workers Union (GWU).
These consultations have yielded a number of recommendations, with GTUC calling for, among other things, the abolishment of the personal income tax, also known as Pay-As-You-Earn (PAYE), the incentivising of homeowners to invest in clean energy and for old age pension to be increased to $50,000.
FITUG has meanwhile proposed a number of measures for the People’s Progressive Party/Civic (PPP/C) Government to consider for Budget 2024. For instance, the Union suggested changes to the income tax threshold and the rate of taxation, as well as a system of tax credits for taxpayers with dependents.
In addition to recommending improvements in old age pension and public assistance, another suggestion was for the Government to adjust pensions paid by the National Insurance Scheme (NIS), which has remained unchanged for some time, as a matter of urgency
In the past, the PSC has meanwhile advocated for relief measures to be included in previous budgets. Last year, the commission had prepared a list of budgetary measures for the Minister of Finance ahead of the presentation of the 2023 budget. They have also historically advocated for local content in the oil and gas sector to be given due consideration, with greater monitoring and enforcement.

Insights
The PPP/C Government has meanwhile been sharing insights into what Guyanese can expect from the 2024 budget. In his 2024 New Year message, President Dr Irfaan Ali had said that the upcoming budget will detail expenditure and revenue plans for the coming year while also delivering on the promise to continuously improve the lives of Guyanese.
President Ali, during that speech, had also noted that Guyanese are going to benefit from improved infrastructural and public services, including water, housing and education, and several major road projects are slated for completion to make commuting easier.
“Guyanese are going to benefit from improved infrastructural and public services, including water, housing and education. Several major road projects are slated for completion and will make commuting easier… This New Year will also see significant investment in education, including preparations for the roll-out of free university education in 2025,” the President had said.
“Cost-of-living interventions will be made to cushion any spikes in prices in our economy. We want to put more money into the pockets of people. Our policy-making matrix will address this ideal and the idea of putting more money in the pockets of our people.”
Additionally, he had said that the Government will be frontally addressing issues of mental health, and suicide; advancing measures to increase disposable income; supporting the building of consortiums to further enable people to benefit from the opportunities here; manufacturing and industrial development expansion, supporting through incentivising investment in manufacturing and industrial development; more community investment aimed at creating community safe spaces, community security, community livelihood, community empowerment.
And last year, Vice President Bharrat Jagdeo had said that the 2024 budget would be primarily focused on policies designed to increase the disposable income and general quality of life for Guyanese, ensuring that more money goes into the pockets of citizens
The Vice President had underscored that Budget 2024 will focus on the continuation of economic and social infrastructural buildout of the country to enhance future growth. It will also bring greater comfort to citizens in the form of health, education, infrastructure, and other significant sectors. The second prong will address increased disposable income through a menu of measures.
“Disposable income can come from several ways. It could be through increase salaries, reduction of taxes, more people being employed and all of these measures would be catered for. So, you can expand employment and get more disposable income at the gross level. That is national level because more people are working.”
In 2023, the National Assembly approved the whopping $781.9 billion 2023 Budget – the first to be financed in part by oil revenues and monies earned from Guyana’s historic carbon credit sale agreement and the largest ever in the country’s history.
This year’s budget will be the fifth budget presented by the current Administration since it assumed office in August 2020 and is the fourth by Dr Singh, who commenced his current tenure as Senior Minister in the Office of the President with Responsibility for Finance in November 2020. (G3)