The Central Government recorded a deficit of $376.4 Billion or 7.3% of the GDP, at the end of last year.
The Minister responsible for Finance, Dr. Ashni Singh has explained that overall, the Central Government’s expenditure stood at $1.2 Trillion, exceeding the $784.6 billion in revenue earnings.
In giving a breakdown, the Finance Minister said the total Central Government current revenue for 2024, net of inflows from Guyana REDD+ Investment Fund (GRIF), the Natural Resource Fund (NRF), and Carbon Credits, amounted to $437.7 billion, experiencing growth of $55.6 billion or 14.5 percent above the 2023 level, while revenue collections from the Guyana Revenue Authority amounted to $420.2 billion, while total non-tax revenue totaled $17.5 billion.
“Internal revenue collections at the end of 2024 amounted to $267 billion. Private sector corporation tax, withholding tax and personal income taxes, together accounted for $35.7 billion of the growth in this category of revenues. The private sector corporation tax category recorded strong performance with growth of $16.3 billion, driven by increased payments made by companies in the oil and gas sector. The growth in withholding tax amounting to $10 billion was also driven by increased collections from the oil and gas sector, as well as the non-oil private sector, along with increased current and arrear payments,” the Finance Minister noted.
Further, he said customs and trade tax collections amounted to $40.4 billion at the end of 2024, which represented $5.5 billion or 15.6 percent above the 2023 levels, primarily due to higher import duties of $4.1 billion from increased importation of motor vehicles for the transport of goods and persons, as well as building materials.
Value-added and excise tax collections amounted to $112.8 billion, which was $9 billion above the 2023 collections. The Finance Minister said domestic supply of goods recorded increased revenues of $6 billion owing to increased payments from the private sector, particularly the wholesale and retail trade, repair of motor vehicles, construction and information and communication sectors.
Non-tax revenue collections increased by $2 billion or 12.8 percent compared to 2023 collections mainly due to improved collections of rent, royalties and fees, fines and other charges.
“Mr. Speaker, Central Government’s expenditure totaled $1.2 trillion, of which non-interest expenditure accounted for $500.7 billion, reflecting growth of 35.3 percent above 2023. This outturn was due to employment cost of $122.6 billion, driven by the 10 percent salary increase coupled with approved salary adjustments for public servants across the public service in 2024. Other goods and services expenditure increased to $169.5 billion largely on account of outlays relating to the cash grant initiative to persons 18 years of age and above. In addition, transfer payments increased to $208.7 billion on account of the increase granted for the Because We Care cash grant programme and for old age pension,” the Finance Minister explained.
Additionally, Dr. Singh said the Government’s Public Sector Investment Programme continues to expand year-on-year with an investment of $646.1 billion in 2024, 53.2 percent higher than 2023.
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