Private Sector, Civil Society laud Govt’s “forward-thinking” Budget 2024

The massive $1.1 46 trillion budget presented by the PPP/C Government on Monday has been lauded by the private sector and civil society for bringing a balance between improving the lives of Guyanese while nurturing infrastructural growth.
Speaking with the Guyana Times during an interview, Chairman of the Private Sector Commission (PSC), Komal Singh commended the incentives which have been announced for Guyanese at the household level.
“It’s an amazing budget, simply because this Budget touches every single sector. It actually caters for the ordinary man on the street. The increase in [income tax] threshold, incentives given to the persons with University of Guyana loans, systems to develop our local workforce are some tangible stuff that we have been crying for, for a long time,” Singh commended.
At the same time, he welcomed the large injections into the infrastructure sector, owing to the importance of establishing such at this juncture of Guyan’s rapidly growing economy.
“As it relates to infrastructural development, our economy is growing rapidly and we cannot develop this economy without ensuring that we have the right infrastructure in place. We will definitely have a slowdown in development. Government’s decision to inject so much more into aviation, the maritime sector, infrastructure are all boosters for development,” Singh said.

Forward-thinking plans
The Guyana Manufacturing and Services Association (GMSA) also applauded the administration for its proactive and forward-thinking plans.
In a statement on Tuesday, the association said it was particularly pleased with the emphasis placed on supporting the manufacturing sector, as this will undoubtedly create new opportunities for local businesses and contribute to job creation.
Again, it was also positioned that the continuing development of current transformative infrastructure is key to enabling business activity and delivery.
Such key infrastructures include investments for the energy grid, incorporating developments like the Gas-to-Energy project and solar and hydro initiatives. Equally significant are transformative land infrastructures, including the Demerara Harbour Bridge, the Schoonord to Crane highway, and the Ogle to Soesdyke Linden highway.
“These initiatives collectively contribute to fostering a conducive environment for business operations…Growth in non-oil real GDP in 2023 by 11.7 percent has resulted in the expansion of the manufacturing sector by 25 percent and services by 10.3 percent. This hereby reaffirms private sector and manufacturing resilience, despite challenges in the global economy,” said the GMSA.
Specific measures which received a thumbs-up from the manufacturing sector are: $527.4 million for the development of the agro-processing sector; $3.3 billion for the development and rehabilitation of industrial estates; $450 million for the replenishment of the Small Business Bureau (SBB) Fund; $500 million for the Food and Drugs Lab; $8 billion to fund tertiary education; containing the cost of fuel at zero percent excise tax; extending the reduction of freight charges for another 12 months; and increasing the income tax threshold to $100,000.

Better Quality Life
On the civil society end, the Federation of Independent Trade Unions of Guyana (FITUG) voiced that the National Budget has admirably attempted to address the diverse challenges experienced by various segments of the Guyanese population. This financial plan was regarded as a ‘great hope’ for the working class and provides a platform for them to achieve a better quality of life.
The Federation penned in a statement, “This approach is encouraging and demonstrates the Government’s commitment to listening to its people and their representatives. The FITUG is delighted to acknowledge that the positive interventions proposed in Budget 2024 aim to improve the lives of working people, children, and the vulnerable. These measures seek to increase disposable income while controlling the cost of living. It is reassuring that the government has considered the struggles many families face and has taken steps to alleviate their financial burdens.”
FITUG also applauded the increase in the income tax threshold, acknowledging that it has risen by as much as 55 per cent since 2020. This year’s improvement alone will release almost $5 billion into the pockets of workers.
“This is a step in the right direction towards a more equitable tax system. Furthermore, the FITUG recognises the hike in the National Insurance Scheme (NIS) old age minimum pension and survivors’ pensions, which we raised during the consultation. We expect that the Government will continue to prioritise measures that benefit the working-class people of Guyana.”
Notably, Government was commended for making strides towards achieving free university education and taking measures to alleviate the university debt burden of Guyanese citizens who have contributed to our nation’s development.
The organisation stated, “These initiatives are significant and showcase a commitment to progress and development. As a working-class organisation, we acknowledge the importance of such efforts as we look forward to continued collaboration with the government in creating a better future for our citizens.”
In total, the measures, according to President Dr Irfaan Ali, are projected to return approximately $100B to ordinary citizens, representing a significant financial gain on a per-capita basis.
This was supported by FITUG, outlining, “Upon examination of the Budget 2024, it is evident that it has brought numerous gains for ordinary people and contributed significantly to the development trajectory of our nation. The budget’s comprehensive approach addresses present-day challenges while focusing on creating better tomorrows, making it a remarkable balance for the country. More specifically, the budget emphasises the importance of investing in education, healthcare, and infrastructure to drive economic growth and improve all citizens’ living standards.” (G12)