By Mark DaCosta-On January 15, 2024, Dr. Ashni Singh, the Senior Minister in the Office of the President with the responsibility for Finance, delivered the budget speech titled “Staying the Course: Building Prosperity for All” in the National Assembly. The fiscal measures outlined in this budget aim to stimulate economic growth and enhance the well-being of Guyanese citizens, said Minister Singh.
Dr. Ashni Singh provided interesting remarks on the state of Guyana’s economy, alluding to the People’s Progressive Party (PPP) government’s commitment to fiscal responsibility and inclusive prosperity. Amid global economic challenges, the focus remains on sustainable development and support for various sectors, the minister said.
Crucial Fiscal Measures announced by Minister Singh include the following:
1. Income Tax Threshold Boost:
– The government proposes an increase in the monthly income tax threshold, elevating it from $85,000 to $100,000 starting from the fiscal year 2024. This move government said is designed to ease the tax burden on individuals and stimulate consumer spending.
2. Life and Medical Insurance Incentives:
– In a bid to encourage citizens to prioritise life and medical insurance, Minister Singh proposes an increase in the allowance for these premiums. Taxpayers can now deduct up to 10% of their income or $50,000 monthly, whichever is lower, in computing their chargeable income.
3. Tech and Sports Accessibility:
– The government – said the minister – is committed to promoting access to sports and technology by removing VAT and Duty on sports equipment. Additionally, essential cell phone accessories, such as chargers and headphones, will be exempt.
4. Fire Prevention Support:
– To enhance household fire prevention, the PPP government plans to eliminate VAT and Duty on crucial firefighting equipment, including fire extinguishers and smoke alarms.
5. Fuel Price Stability:
– Acknowledging the impact of elevated fuel prices, Minister Singh declared the maintenance of a zero percent excise tax on petroleum products.
6. Freight Charges Adjustment:
– The adjusted freight charges, set to pre-pandemic levels, will be extended for another 12 months, easing the computation of import taxes. This move is a strategic response to support businesses amid ongoing economic challenges, the minister said.
7. Social Welfare Enhancements:
– Old Age Pension is set to rise from $33,000 to $36,000 per month, benefiting approximately 76,000 individuals. Public Assistance will also see an increase from $16,000 to $19,000 monthly.
8. Pension Improvements:
– The National Insurance Scheme will witness changes, with the Minimum Pension increasing from $35,000 to $43,075 and Survivor’s Pension rising from $17,500 to $21,537.
9. Support for University Graduates:
– Graduates of the University of Guyana will receive support through the elimination of outstanding loans, provided they demonstrate employment or self-employment in Guyana after graduation.
10. Grants for Various Purposes:
– The PPP government proposes the introduction or increase of several grants, including one-off grants for individuals close to qualifying for Old Age Pension and enhanced student grants of $40,000, along with a $5,000 uniform voucher allowance.
11. GuySuCo gets a boost:
The ailing Guyana Sugar Corporation gets another lease with $6 Billion injection.
The budget allocates $7 billion for measures aimed at sustaining food production, addressing the impact of rising prices on essential goods, said the minister. Furthermore, the Part-Time Job Programme will be expanded, allowing one person per household to earn $40,000 per month for 10 days of work in public offices.
The government plans to collaborate with commercial banks to lower interest rates on loans up to $5 million, the minister announced.
To improve health services, especially eye care, the minister said that government proposes a voucher system for school children and pensioners. This includes $3,000 vouchers for eye tests and $15,000 vouchers for spectacles.
The minister said that government intends to provide an $8,000 voucher for women aged 21 to 65 to cover the cost of Cervical Cancer Testing.
The Guyana Budget 2024 is declared by the PPP regime to be worth some $1.146 trillion.
