By Kristin Josiah | January 18, 2025
Budget 2025, amounting to over $1.3 trillion, has received positive feedback from members of civil society, who view the fiscal plan as a strategic approach to increasing disposable income and improving the standard of living for Guyanese citizens.
Presented by Senior Minister in the Office of the President with Responsibility for Finance and Public Service, Dr. Ashni Singh, under the theme “A Secure, Prosperous, and Sustainable Guyana,” the budget reflects a 20.6 percent increase over the previous year.
Key measures introduced include a reduction in personal income tax from 28 percent to 25 percent for both employed and self-employed workers.
This adjustment is expected to benefit more than 100,000 taxpayers, putting an estimated $3.6 billion back into circulation.
Additionally, the income tax threshold has been raised from $100,000 to $130,000 per month, effective from 2025.
To further ease the financial burden on workers, the government has implemented adjustments to taxation on second jobs and overtime pay.
The first $50,000 earned in overtime wages beyond normal working hours will now be non-taxable.
Parents will also benefit from a new provision allowing one parent per child to claim $10,000 per month as non-taxable income.
Senior citizens and vulnerable groups will see improvements in social support, with the Old Age Pension increasing from $36,000 to $41,000 per month and public assistance rising from $19,000 to $22,000.
A newly introduced initiative will provide a one-time grant of $100,000 for every newborn baby born to a Guyanese mother.
Recognizing the ongoing challenges posed by the cost of living, the government has allocated $9 billion for targeted interventions based on stakeholder consultations.
Members of the private sector and business community have welcomed these measures, emphasizing their potential to stimulate economic growth, support private sector development, and improve the financial well-being of citizens.
Additionally, young professionals and overseas-based Guyanese have highlighted the budget’s focus on creating opportunities and enhancing financial stability for future generations.
Parliamentary debates on the budget are set to take place later this month, where government and opposition members will discuss the proposed fiscal policies for 2025.