Guyana $1.382Tn Budget 2025 Approved

  • Clearing the way for the continuation of transformative interventions, Guyana’s largest budget of $1.382Tn on Wednesday, February 6, 2025, was passed in the National Assembly. This year’s budget, which was noted was fully financed with no new taxes, was approved during the 100th sitting of the Twelfth Parliament, following the completion of the budget debate and consideration of estimates and expenditures over the past few weeks.
  • To be included in this year’s budget is the sum of US$2.463Bn or GYD$512.4Bn to be withdrawn from the Natural Resources Fund (NRF) for the financial year 2025 following the NRF Act of 2021.
  • When the budget was presented to the National Assembly in January, the Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, indicated that the formulation of the budget with no new taxes marks a significant step towards fulfilling the People’s Progressive Party/Civic (PPP/C) government’s commitment to sustainable economic development.
  • The historic budget is set to serve a dual purpose to complete and exceed the undertakings promised by the PPP/C administration in its 2020 manifesto and further lay the foundation for the PPP/C’s next term in office.
  • In the most recent budget, the Government of Guyana listed several measures to be executed, including an increase in the income tax threshold from $100,00 to $130,000 per month or $1,560,000 per annum. This represents a 100% increase in the last five years. This measure is expected to benefit 22,000 people by removing them from the tax net. Adjustments to income tax rates and taxable bands will also be enacted, along with income tax relief for overtime pay and income from second jobs.
  • Social welfare and other fiscal measures will also be implemented including, Reduction in electricity costs; Containing the cost of fuel; Abolition of bridge tolls; Reduction in freight charges; Continuation of a part-time job programme; increase in old age pension; Free university and technical and vocational education; a one-cash grant of $100,000 for every citizen 18 years and over, among other measures.
  • Finally, this year, the continuation of several transformational projects is expected including the advancement of Guyana’s energy sector for which some $88 billion has been set aside. This includes the continued expansion of renewable energy and upgrading infrastructure.

(Sources: Guyana Chronicle & PWC)