Commenting on the recently presented Budget 2025, the Private Sector Commission (PSC) in a release on Wednesday described the policies outlined by Senior Minister in the Office of the President with responsibility for Finance and the Public Service, Dr. Ashni Singh, as transformative and that they reflect a clear commitment to fostering inclusive growth, reducing inequality, and creating an enabling environment for businesses to thrive.
The release also applauded the Government of Guyana for presenting a “forward-thinking and impactful” 2025 National Budget under the theme “A Secure, Prosperous, and Sustainable Guyana”, and with a total expenditure of $1.382 trillion, the budget is a testament to the government’s dedication to ensuring that the benefits of Guyana’s unprecedented economic growth are shared equitably among all citizens.
The PSC noted that the economy expanded significantly in 2024, including a 43.6 per cent increase in GDP [Gross Domestic Product] which included robust growth in non-oil sectors, and is heartened by the targeted measures to sustain this momentum.
On the impact of the government’s fiscal reforms on the lives of Guyanese people, the PSC referred to the increase in the personal income tax threshold from $100,000 to $130,000 monthly, coupled with a reduction in the first tax band from 28 to 25 per cent, which it posited will increase disposable incomes for families and stimulate domestic spending. The release also noted the introduction of non-taxable thresholds for overtime earnings and secondary employment income which will have a similar effect while underscoring the government’s understanding of the realities faced by the workforce.
Shifting its focus to the business community, the Commission viewed the removal of VAT on critical inputs such as agricultural machinery and backup generators as a welcome initiative, as these measures it says, not only reduces operating costs for key industries but also aligns with efforts to diversify the economy and strengthen non-oil sectors such as agriculture and manufacturing. Mention was also made of the accelerated depreciation provisions for poultry farmers’ investments which demonstrate a “proactive approach to supporting food security and boosting the agro-processing sector.”
The PSC also spoke of the government’s “deep commitment” to improving the standard of living for vulnerable groups with social measures such as the increase in old-age pensions, public assistance, and the Because We Care cash grant. These initiatives, coupled with the abolition of bridge tolls, “will alleviate financial burdens on families while promoting greater mobility and economic participation.”
According to the release, the PSC remains encouraged by the government’s efforts to maintain macroeconomic stability, address inflation, and invest in resilient infrastructure, which are critical to fostering a strong and sustainable economy. It pointed out that the continuation of measures to contain freight costs reflects a “pragmatic approach” to shielding businesses and consumers from external shocks, thereby ensuring economic resilience. “Budget 2025 will enable continuous private sector growth, empowering businesses to drive innovation, create jobs, and build a strong, sustainable economy that benefits all stakeholders.”
The PSC assured that it will continue to work with policymakers “to ensure the successful implementation of these initiatives and to advocate for further policies that enhance Guyana’s economic competitiveness and social well-being,” the release added.
