In a budget presentation that went on for more than four hours, Minister responsible for Finance, Dr. Ashni Singh, unveiled a massive $1.382 trillion National Budget, which is 20.6% larger than last year’s budget. He said the budget will be fully financed with no new taxes, but with a heavy dependence on funds from the oil sector.
The budget will see hundreds of billions of dollars being injected in the Education, Health, Public Infrastructure and other key sectors.
With regard to the measures, with effect from January 1, 2025 the Income Tax Threshold will be increased from $100,000 to $130,000, the Finance minister announced.
He said the move to further raise the income tax threshold will put an additional $8.5B into the pockets of Guyanese workers.
“I now wish to announce an increase of the threshold to $130,000 monthly, with effect from year of income 2025. This represents a doubling of the threshold from the time we entered office. This will result in an additional $8.5 billion in disposable income for workers and the removal of 22,000 persons from the tax net,” the Finance Minister said.
Additionally, the Government has also taken a decision to reduce the Personal Income Tax rate of 28 percent to 25 percent for employed and self-employed workers.
Minister Singh said this measure will increase the disposable income of more than 100,000 of taxpayers and is estimated to put $3.6 billion back into the hands of Guyanese workers.
The Finance Minister also announced a one-off cash grant of $100,000 for new born babies.
“Mr. Speaker, in order to support the development and wellbeing of one of our most precious and valuable population group, newborn babies who will constitute the future of the Guyana, Government will provide a one-off grant of $100,000 for every newborn baby born in Guyana to a Guyanese mother, estimated at an annually cost of $1.3 billion annually,” he announced.
2025 will also see the Old Age Pension being increased to $41,000, Public Assistance to $22,000, and the Because We care Cash Grant to $50,000.
The Finance Minister said the move to increase the Old Age Pension will benefit over 76,000 pensioners.
In the case of the Because We Care Cash Grant, Minister Singh told the National Assembly, that over 205,000 school children stand to benefit.
“It would be recalled that since returning to office, this administration has restored and incrementally increased the BWC Student Grant initially from $10,000 in 2014 to $15,000 in 2021, then $25,000 in 2022, $35,000 in 2023 and most recently, $40,000 in 2024. In keeping with our Manifesto promise, I now wish to announce a further increase of the BWC Student Grant to $50,000, benefiting over 205,000 children across public and private schools, placing an additional $2 billion into the hands of parents. Together with the BWC Student Grant, the uniform voucher allowance of $5,000 will result in parents of over 205,000 school children receiving a total of $55,000 per child, resulting in an estimated $11 billion being transferred to parents and their children,” Minister Singh said.
Other measures include the continued distribution of the $100,000 cash grant, free university education, the reduction of electricity costs by 50% when the gas-to-energy project comes on stream, the abolition of bridge tolls when the new Demerara River Bridge is completed, the containing of the cost of fuel, the reduction in freight charges, the continuation of the part-time job programme, the issuance of a $10,000 universal healthcare voucher, the adjustment of taxes for children, the removal of VAT on agriculture machinery and the removal of VAT on back-up generators.
He said the Government will also continue steps that are geared towards easing the cost of living woes.
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