Finance Minister presents $781.9B budget in National Assembly

– largest in the country’s history, includes no new taxes

Valued at some $781.9 billion GUY, the 2023 National Budget, was on Monday tabled in the National Assembly under the theme “Improving Lives Today, Building Prosperity Tomorrow”.

The fiscal plan, 41.4 per cent larger than 2022, is fully financed with no new taxes and is the largest in Guyana’s history.

It was noted that it contains a series of interventions intended to create wealth for Guyanese, while diversifying the country’s economic prospects and bolstering nationwide growth.

Finance Minister, Dr Ashni Singh, in his presentation, reminded that the budget comes at the approximate mid-point of the Dr Mohamed Irfaan-Ali-led government’s term of office.

It, therefore, presents a timely opportunity both to look back at the first half of this term and, even more importantly, to look ahead at what is to come.

“Our government is committed to sound policies for long-term sustainability. PPP/C Governments do not compromise the long-term well-being of our country and our people at the altar of expediency or populism,” Minister Singh said.

It was noted that this year will see $3 billion in salary adjustments, benefitting 5,000 healthcare workers and 9,000 members of the disciplined services, with effect from January 1, as previously announced by President Ali.

An increase in the monthly income tax threshold from $75,000 to $85,000 monthly, releasing a total of $3.3 billion into the hands of taxpayers and removing 12,000 taxpayers from the tax net.

The Because We Care Cash Grant will see an increase from $25,000 to $35,000. This will benefit over 214,000 schoolchildren in public and private schools and will place an additional $2.1 billion in the hands of their parents.

It was disclosed that as it pertains to containing the cost of fuel, zero excise taxes on fuel will be maintained to absorb the impact of volatile fuel prices, as long as fuel prices remain elevated at an estimated cost of $17 billion.

Additionally, some $10 billion has been allocated for the expansion of the part-time jobs programme.

Another $5 billion will also go towards the additional cost of living measures to be determined from the ongoing community engagements.

Consideration has also been given to the vulnerable, with the old-age pension being increased from $28,000 to $33,000, and placing an additional $4.4 billion of disposable income in the hands of 73,000 pensioners.

Public assistance will also be increased from $14,000 monthly to $16,000, to benefit over 29,000 persons, and place an additional $700 million of disposable income to these individuals.

Further, to the benefit of low-income homeowners, the low-income mortgage ceiling has been increased from $15 million to $20 million, reducing the cost of borrowing within this range from commercial banks, and further incentivising home ownership.

This year, $84.9 billion has been budgeted for the health sector.  This includes over $500 million for the training of healthcare professionals and more than $900 million to address non-communicable diseases, including mental health.

A sum of $94.4 billion has been allocated to further improve access to quality education for all. It was pointed out that among these include $2.1 billion to continue the rollout of the National School Feeding Programme which will provide juice and biscuits, breakfast, and hot meals to over 85,000 pupils; over $3.4 billion to procure textbooks for use at primary and secondary schools and $12.4 billion to improve education infrastructure across the country.

Further, $1.8 billion has also been allocated towards the GOAL scholarship programme which caters for 8,555 new students and 1,047 continuing students. In the housing sector, $54.5 billion has been budgeted for housing development in new and existing areas, including the construction of roads, drains and bridges, and the installation of utilities to meet housing demands.

In the water subsector, the government continues to deliver on its promise to the population by improving and expanding the water supply systems across the country. In this regard, government has allocated $17.7 billion in Budget 2023.

This will finance several wells and treatment plants to be constructed across the country. Over $200 million will go towards child advocacy and daycare centres, and $100 million to commence the construction of a new care home for senior citizens. Amerindian and hinterland development will benefit from an allocation of $13.52 billion, while the agriculture sector will receive a financial injection of $26 billion.

It was noted that sectors such as legal affairs and local government received upwards of $6.2 billion and $13.5 billion, respectively. It was stressed that Budget 2023 is the first budget to benefit from the sale of Guyana’s carbon credits, which will amount to $31.3 billion in revenue in 2023, alongside a transfer of $208.9 billion from the NRF to the consolidated fund this year.

Additionally, Budget 2023 strikes a balance between addressing the pressing needs of today and the critical investments needed for tomorrow, ensuring that both are attended to.