Armed with a purse carrying $1.382 Trillion, the PPP Civic Government plans to immediately push ahead with its development agenda for the year, as it also prepares for upcoming elections.
After four days of the examination of the Budget estimates, the National Assembly on Wednesday night passed the $1.382 Trillion Budget, which was piloted through the House by Senior Minister with responsibility for Finance, Dr Ashni Singh.
Over $252 Billion of allocations in the budget will go towards the advancement of infrastructure works across the country.
It will also see the injection of $175 Billion into the Education Sector to advance Government’s vision of free world-class education for all Guyanese; another $143.2 Billion to expand and improve the public healthcare system; and a $112.6 Billion injection into the Housing Sector to boost home ownership.
Additionally, $104.6 Billion has been approved for Agriculture and Food Security and $108.7 Billion for the Security Sector.
To facilitate the implementation of a number of income-tax related measures, the National Assembly also passed the Income Tax (Amendment) Bill of 2025.
The Bill allows for the adjustment to the income tax threshold from $100,000 to $130,000, and a reduction in the personal income tax rate for the first and second bands of taxable income from 28 percent to 25 percent and from 40 percent to 35 percent.
“This achieves the most commendable and indeed remarkable result that this government in this term in office would have doubled the income tax threshold. We came into office meeting it at $65,000 per month, and we in this term in office have managed to double it to $130,000 per month,” Minister Singh told the House.
The amendment also allows for one parent to claim $10,000 monthly as non-taxable for each child.
Adjustments to taxes paid on overtime with persons now being able to have the first $50,000 of their overtime non-taxable and similar adjustments to taxes paid on a second job have also been approved.
Minister Singh said the measures will benefit thousands of Guyanese by increasing their disposal income.
“So, this Bill introduces, in addition to the increase in the income tax threshold, this Bill, the current Bill introduces those three important and historic innovations to our tax system. Additionally, Mr. Speaker, this Bill has another important objective and that is to reduce the tax burden on every single taxpayer. And it achieves this by reducing the two rates that are applicable to taxable income,” he said.
Meanwhile, other measures contained in Budget 2025 include an increase in the old age pension from $36,000 to $41,000, support for newborn babies through a one-off $100,000 grant, a one-off injection to the National Insurance Scheme (NIS) of $10 billion which will offer eligible persons with contributions ranging from 500 to 749 contributions, a full and final grant depending on the year the last contribution was made; and, an increase of the Because We Care Cash Student Grant to $50,000.
Further, it will see the abolition of bridge tolls for all types of vehicles upon completion of the new Demerara Harbour Bridge as well as the New Berbice River Bridge and the Wismar Bridge and free university, technical and vocational education, which is expected to benefit over 14,000 students.
The Government has praised its budget as one that contains much for everyone. It believes employment opportunities will be created through many of the measures announced, and it will also support promote production and productivity across the country.
The Opposition has described the budget as one that is not people-centred, but is instead heavy on infrastructure spending, while not having enough to cover the impact of the cost of living situation.
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