$383.1 Billion Budget focuses heavily on education, health and infrastructure

In terms of measures, Dr. Singh announced that the Government will restore to the zero-rated status on all of the food items and other basic household necessities that were previously zero-rated at the time they demitted office in 2015.

$383.1 Billion Budget focuses heavily on education, health and infrastructure

Finance Minister Dr. Ashni Singh unveiled the government’s $383.1 Billion budget that is heavily focused on education along with infrastructure and other development initiatives.

On the Education front, a total of $60.7 Billion has been allocated to that sector with just over $5 billion of that amount going towards the construction and rehabilitation of schools.

The Ministry of Education is also expected to spend $1 billion on scholarships.

In the area of infrastructure, the Government has budgeted $25.6 billion for the construction and repair of roads and bridges across the country. 

$3.5 Billion has been allocated for the start of works on the Linden to Mabura Hill road.

And as the country continues to fight COVID-19,  the health sector will receive $53.5 Billion with over a billion of that money going to the purchase of medical equipment.

The Guyana Power and Light company will get a $2 billion in the budget with part of that money going to hydro power development.

In social services, the recently increased old-age pension will remain at $25,000 per month but the public assistance will be increased from $9,000 per month to $12,000 per month.

The Finance Minister has pegged the growth rate this year to be just over 20% and he believes that the budget is a transformative one.

In terms of measures, Dr. Singh announced that the Government will restore to the zero-rated status on all of the food items and other basic household necessities that were previously zero-rated at the time they demitted office in 2015.

There will also be a 5% reduction in the water rate and certain construction material, mostly locally made will be zero-rated also.

“Stone imported for construction and housing from CARICOM – our Government had previously zero-rated this to June 2021, and we are now extending the zero-rated status until further notice. Locally produced pre-stressed concrete piles. Locally fabricated mild steel beams for building construction. Locally manufactured roofing and PVC products for building construction”, are some of the items to be zero-rated.

The Government will also be moving to increase the Low-Income Mortgage Loan Ceiling

“Last year, we announced an increase from $8 million to $10 million in the ceiling on low-income housing loans that may be obtained through commercial banks under the low-income housing loans programme supported by the government. This year, we would like to announce a further increase from $10 million to $12 million, which will make housing loans more affordable to borrowers within that range.”

Under the 2021 budget, the government will also be introducing a cash grant of $15,000 per child to be given to the parents of children in the nursery, primary, and secondary schools in the public school system.

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