The Irfaan Ali Administration unveiled a $1.558 Trillion Budget to the National Assembly for 2026 with a menu of measures that include a $100,000 cash grant for every citizen, school grants totaling $85,000, tax waivers and the introduction of an annual transportation grant for children and pensioners.
In his budget presentation, which spanned over six hours, Senior Minister with responsibility for Finance, Dr Ashni Singh said Budget 2026 was crafted to give effect to President Irfaan Ali’s vision for a “modern” and “prosperous” Guyana that provides opportunities for every single Guyanese.
The 2026 National Budget – the largest in the country’s history – is 12.7 percent larger than the 2025 Budget, and according to the Finance Minister, it includes no new taxes.
Minister Singh told the 65-Member National Assembly that in keeping with the Government’s commitment to the citizens of Guyana, every citizen of Guyana, 18 years and old will received a National Cash Grant to the tune of $100,000. The grant is expected to amount to approximately $60B.
Additionally, school aged children are in line to benefit from a total of $85,000. It was explained that the ‘Because We Care’ Cash Grant, which in 2014 stood at 10,000, will now be increased to $60,000 to the benefit of 206,000 children in public and private schools. In addition to the Because We Care Cash Grant, students will also benefit from an annual transportation support grant pushing the total amount to be received to $85,000.
“Mr. Speaker, I am also pleased to announce that, in keeping with our 2025 manifesto promise, Government will be introducing an annual Transportation Support Grant amounting to $20,000 per child and totalling $4.1 billion of additional disposable income to parents. As a result, the BWC grant of $60,000, the uniform voucher allowance of $5,000, and the Annual Transportation Grant of $20,000 will aggregate to a total transfer of $85,000 per child, amounting to $17.5 billion for the year,” Minister Singh announced.
He said in support of equitable access to quality education, Government, Minister Singh said, will maintain the policy of paying for up to eight CSEC and CAPE subjects per child in public and private schools. This intervention is expected to benefit almost 14,000 students.
Minister Singh announced further Government’s intention to increase Old Aged Pension from $41,000 to $46,000 per month with effect from January 1, 2026. This measure, according to the Finance Minister will benefit approximately 95,000 pensioners with a total annual old age pension payment to over $52 billion annually.
Like in the case of the children, pensioners will also receive a transportation grant, the Finance Minister announced.
“Mr. Speaker, in keeping with our recent manifesto promise and to support the mobility of our elderly citizens, Government will introduce an annual Transportation Support Grant of $20,000 to every OAP pensioner, providing an additional injection of $1.9 billion in support. Together with the OAP Pension, these measures will see an annual transfer of over $54 billion being paid to 95,000 pensioners,” he explained.
Public Assistance will also be increased from $22,000 to $25,000 per month. Further to support the provision old care to both the elderly and child, the Government will also be removing the corporate taxes on companies that provide child care and elderly care services, and provide $1.5 Billion to support co-investment in child and elderly care facilities with the intention of lowering the fees at these facilities.
It was also announced that the Pathway workers, Community Enhancement workers, Community Service Officers, and Community Policing Groups will benefit from an increase in stipend from $40,000 monthly to $50,000 per month, with effect from January 1, 2026. The adjustment in stipend for these workers will place an additional $2.8 billion of additional disposable income in their hands and aggregate to an annual injection of $14 billion.
This year will also see a reduction in taxes paid by the regular Guyanese. Minister Singh disclosed that the Government will be increasing the income tax threshold to $140,000 while the net property tax on individuals will be removed.
“Mr. Speaker, by the end of our last term in office, this Government doubled the income tax threshold from $65,000 in 2020 to $130,000 in 2025. This resulted in $18 billion in disposable income to all workers and the removal of 60,000 persons from the tax net. I now wish to announce a further increase of the threshold to $140,000 monthly, with effect from year of income 2026. This will result in the removal of 5,000 persons from the tax net whilst adding over $2 billion in disposable income to workers,” he explained.
The Government will also set aside $9 Billion to bring relief to citizens and cushion the high cost of living.
Meanwhile, in the Agriculture Sector, Minister Singh said the Government will remove corporate taxes on agriculture and agro-processing businesses, and will expand the list of products eligible for export allowance to include timber value added products.
The Government will also be moving to remove VAT from locally made furniture and locally manufactured jewellery. Duty and VAT on security equipment such as security cameras and alarm systems will also be removed.
Further, citizens seeking to import double-cab pick-ups will now pay a flat tax of $2 Million on double-cab pick-ups less than 2,000 cc, irrespective of age, and $3 Million on double-cab pick-ups between 2,000 cc and 2,500 cc irrespective of age. VAT on new vehicles below 1500 cc, and hybrid vehicles below 2000 cc will also be removed in an attempt to reduce the cost of importing such vehicles. Additionally, Minister Singh announced that the Government will remove all import duties and taxes on ATVs for all categories. Taxes and duties for outboard engines up to 150 horsepower are also being removed.
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