The People’s Progressive Party/Civic (PPP/C) Government has expressed its displeasure with the prevailing view of its critics in the media and elsewhere that its government has failed to implement critical measures to increase the disposable income of the Guyanese people.
In a Department of Public Information (DPI) release yesterday, the administration put forth the argument that a comprehensive examination of the 2020 to 2024 budgets would “unequivocally” show its “unwavering” commitment to enhancing the economic well-being of all Guyanese, boasting that it has returned over $200 billion to the pockets of citizens through a series of “targeted and impactful measures.”
According to DPI, the government asserts that it has been “resolute” in its mission to alleviate the financial burdens of the populace while improving the standard of living. This commitment, it says, is reflected in the extensive range of fiscal policies and relief measures “meticulously” outlined and executed across successive budgets with each budget cycle “strategically” designed to address the immediate needs of citizens while laying the groundwork for sustained economic growth and stability.
To bolster its claim, the government set out an overview of the fiscal measures taken in successive budgets since 2020 to alleviate the financial burdens of its citizens.
Budget 2020: In response to the immediate challenges posed by the COVID-19 pandemic, the government introduced a suite of relief measures totalling over $40 billion. This included the reversal of Value Added Tax (VAT) on essential services such as electricity and water.
Budget 2021: Building on the foundational measures of 2020, 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 five per cent reduction in water tariffs and introduced tax concessions on investments in agro-processing facilities, cold storage, and packaging.
Budget 2022: In recognition of the ongoing economic impact of the pandemic, the 2022 budget introduced further measures totalling 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.
Budget 2023: 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. Key measures included further reductions in freight charges, significant increases in the income tax threshold, and the expansion of social support programs such as the Because We Care cash grant and uniform voucher scheme.
Budget 2024: Significantly, this year’s budget commits over $70 billion to sustaining the government’s efforts to increase the disposable income available to citizens while ensuring their improved standard of living. This includes maintaining zero per cent excise tax on petroleum products, extending freight charge reductions, and continuing the highly successful part-time job programme.
The government asserted that it has introduced measures which left over $195 billion since 2020 in the pockets of Guyanese. As such, it concluded that the “baseless claims” of its critics fail to acknowledge these “substantial and impactful measures.”
Further, although the measures over the period have cumulatively increased disposable income, it argued that the total estimate is “vastly conservative” as it does not account for the compounded impact of earlier policies continuing to benefit subsequent years, the release added.
