In keeping with its commitment to ensure the equitable distribution of the nation’s oil wealth, the Dr. Irfaan Ali-led administration will be boosting citizens’ disposable income by $70 billion in 2024. This was outlined in the half-year report produced by the Ministry of Finance.
In the document, the administration reminded that it has maintained the zero percent Excise tax on petroleum products, extended freight charge reductions, and continued the part-time job programme which keeps thousands of men and women gainfully employed.
During the first half of 2024, the report notes that food prices continued to be impacted by a combination of domestic and global factors. These included disruptions in domestic supply chains and increased demand spurred by economic growth and population dynamics. Climate conditions also contributed to challenges in food production and distribution. It must be noted that the Government proactively implemented measures to reduce the cost of production and cushion the cost of living and will continue to do so throughout the year. In fact, the government has already engaged farmers to explore ways of directly reaching consumers in an effort to continue to contain food prices.
Notably, the administration stressed that “significant investments continue to be made in agriculture, infrastructure, health, education, social services and housing,” all with the aim of ensuring that the standard of living is improved year over year and citizens have more disposable income in their pockets.
Since taking office in 2020, the PPP/C Government has been resolute in its mission to alleviate financial burdens and improve the standard of living for the populace. In response to the immediate challenges posed by the COVID-19 pandemic which hit Guyana in March 2020, the government introduced a suite of relief measures totaling over $40 billion. This included the reversal of Value Added Tax (VAT) on essential services such as electricity and water, the provision of a $25,000 COVID-19 relief voucher per household, and the removal of VAT on materials for critical sectors including housing, telecommunications, private education, and healthcare. These initiatives were pivotal in providing immediate financial relief and stimulating economic activity during a period of unprecedented global uncertainty.
The 2021 budget allocated an additional $10 billion towards measures aimed at restoring the zero-rated status of essential food items and household necessities. Additionally, the government implemented a 5 percent reduction in water tariffs and introduced tax concessions on investments in agro-processing facilities, cold storage, and packaging. These measures were aimed at reducing the cost of living and encouraging local production and investment, thereby increasing disposable income and economic resilience.
Recognizing the ongoing economic impact of the pandemic, the 2022 budget introduced further measures totaling over $25 billion. This included substantial cost-of-living adjustments, reductions in import duties and excise taxes, and targeted support for vulnerable communities and key economic sectors.
The 2023 budget continued this trend, with over $50 billion allocated to a range of initiatives designed to ease financial pressures on households and spur economic growth.
In total, the PPP/C Government has introduced measures which left over $195 billion in the pockets of Guyanese from 2020 to 2024.
