Caption: Guyana Finance Minister Dr Ashni Singh
GEORGETOWN – The Guyana government Monday night outlined a raft of socio-economic policies that it said are geared towards prioritising investments that directly promote economic growth, accelerate the transformation of the country, enhance human capital, and improve social wellbeing.
Finance Minister Dr. Ashni Singh delivering the first budget of the ruling People’s Progressive Party/Civic (PPP/C) since it won last September’s regional and general election, told Parliament that the Central Government total expenditure is projected to grow by 15.8 per cent this year, to reach GUY$1.5 trillion (One Guyana dollar=US$0.004 cents), with the Public Sector Investment Programme (PSIP) expanding to GUy$779.6 billion, and non-interest current expenditure to GUY$705.1 billion.
He told legislators that the PSIP continues to be the engine delivering the Irfaan Ali government’s national transformation agenda, pushing deeper into the foundations of daily life by building modern roads and bridges, new and upgraded energy infrastructure, world class schools and hospitals, affordable housing and safer communities.
He said this year’s national budget Budget is crafted so as to give effect to President Ali’s vision for a modern, prosperous Guyana, that provides opportunities for every single Guyanese person.
He said the fiscal package is 12.7 per cent larger than the previous budget, totaling GUY$1.558 trillion, “the largest budget ever, and is financed with no new taxes”.
Singh said that total receipts of public enterprises are expected to increase to GUY$296.4 billion in 2026, while total expenditure of public enterprises is projected to grow by GUY$83.2 billion, with operating costs estimated to grow from $196 billion last year to $210.5 billion this year.
He said capital expenditure is projected to increase by GUY$68.2 billion when compared with 2025 and as a result, the overall surplus of public enterprises is forecasted at six billion Guyana dollars this year.
The Finance Minister regarding the operations of the non-financial public sector, a deficit of GUY$442.9 billion, or 7.6 per cent of gross domestic product (GDP), is projected.
“The budget before this Honourable House therefore prioritises investments that directly promote economic growth, accelerate the transformation of our country, enhance human capital, and improve social wellbeing.
“ It supports an education and training system that equips our children and young people with relevant skills for a modern, diversified economy; a health system that is more accessible, resilient, and responsive; and social protection mechanisms that provide dignity, security, and support for the most vulnerable among us.
“These are not expenditures of convenience, they are investments in productivity, resilience, and a better Guyana, a Guyana where all can prosper, and a Guyana where ability and effort are rewarded. As I said before, this is the Guyana we are building,” Singh said.
The government said that in alignment with its objective to support the accumulation of savings and assets by individuals, it will remove the net property tax on individuals, which will increase the disposable income of these persons by over GUY$1.4 billion and that the measure is applicable from year of assessment 2026.
In addition Singh said that by the end of its last term in office, the government doubled the income tax threshold from GUY$65,000 in 2020 to GUY$130,000 in 2025, resulting in GUY$18 billion in disposable income to all workers and the removal of 60,000 persons from the tax net.
“I now wish to announce a further increase of the threshold to GUY$140,000 monthly, with effect from year of income 2026. This will result in the removal of 5,000 persons from the tax net whilst adding over two billion dollars in disposable income to workers”.
Singh said that these measures will provide over GUY$100 billion to citizens, not including the impact of the removal of the excise tax on fuel, to promote economic activity, job creation, and increase disposable income to the Guyanese people.
He said that as part of the government’s ongoing efforts to accelerate economic diversification, it will designate a number of areas as special development zones that will benefit from fiscal incentives. (CMC)
