“Our goal is to ensure every Guyanese family can meet their needs and build wealth through their efforts,” stated Dr. Ashni Singh, Minister of Finance
Dr. Ashni Singh deserves immense credit for crafting a budget that reflects a deep commitment to the progress and well-being of the people of Guyana. His visionary approach, as evidenced in the $1.382 trillion Budget 2025, is not just ambitious but transformative, addressing critical areas such as education, healthcare, infrastructure, and economic development. By ensuring no new taxes and focusing on sustainable growth, Dr. Singh has demonstrated an acute understanding of the challenges and aspirations of every Guyanese family. His efforts to empower citizens through unprecedented investments in key sectors showcase a genuine dedication to fostering a prosperous and secure future for all.
With a vision to uplift citizens and drive national progress, the Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh, unveiled Guyana’s largest-ever fiscal package on Friday. Budget 2025, valued at an unprecedented $1.382 trillion, represents a bold stride towards sustainable development, ensuring no new taxes while focusing on comprehensive socio-economic advancement.
An Ambitious Plan Without New Taxes
This historic budget marks a 20.6% increase from the previous year, reflecting the government’s steadfast commitment to creating a prosperous and equitable society. Under the theme “A Secure, Prosperous, and Sustainable Guyana,” the budget emphasizes transformative infrastructure, essential services expansion, and economic empowerment for every citizen. Dr. Singh highlighted, “Our aim is to ensure that every Guyanese family is able to meet all of their basic needs and accumulate household and personal wealth through their own efforts.”
Investments in Upliftment and Opportunity
Massive investments have been made to elevate citizens’ quality of life, focusing on education, skills training, and entrepreneurship. Dr. Singh underscored, “Our abiding concern at all times is to create opportunities for personal upliftment, and these opportunities are being created at a pace never before seen.”
By allocating unprecedented funds, the budget lays the groundwork for fulfilling the government’s 2020 manifesto promises and setting the stage for future sustainable development under the People’s Progressive Party (PPP/C). Dr. Singh said, “The first is to complete and, in many cases, exceed the undertakings we promised the people of Guyana in our 2020 manifesto. The second is to lay the foundation for the People’s Progressive Party’s next term in office as we prepare for a new phase of sustainable development.”
Empowering Today’s Generation
In a time of boundless opportunities, the government aims to provide a framework that fosters production and productivity while rewarding effort. Dr. Singh noted, “Budget 2025, therefore, continues to build and enhance the framework that incentivizes production and productivity while ensuring that effort is recognized and rewarded.”
Guyana’s economy experienced a significant surge, with a 43.6% increase in Gross Domestic Product (GDP) in 2024. Finance Minister Dr. Ashni Singh highlighted this remarkable growth during the National Budget for 2025 presentation.
Dr. Singh reported a 13.1% expansion in the non-oil economy, driven by growth in the rice industry, various crops, bauxite, mining, quarrying, and other sectors.
On the other hand, the oil and gas sector saw a 57.7% rise, thanks to increased production from the Prosperity FPSO, leading to a 55% boost in crude oil exports.
The gold mining sector also experienced a modest 0.5% growth, while the manufacturing sector expanded by over 13%. There were also notable increases across the services and other sectors.
This year’s Budget is being delivered eight months before parliament is dissolved ahead of the 2025 General and Regional Elections.
Minister Singh emphasized that the 2025 Budget aims to fulfill and surpass the commitments made in the Government’s 2020 manifesto while laying the groundwork for the PPP’s future terms in office and beyond.
Finance Minister Dr. Ashni Singh presented Guyana’s largest fiscal plan, a $1.382 trillion budget for 2025, marking a 20.6% increase over the previous year. This ambitious budget integrates over $90 billion in relief measures designed to reduce the cost of living and boost disposable income for thousands of Guyanese.
Dr. Singh revealed that despite projected GDP growth of 10.6% in 2025—following an impressive 43.6% growth in 2024—this budget aims to fortify a secure, prosperous, and sustainable Guyana, which aligns with the presentation’s theme.
Economic Relief Measures
Key measures introduced include:
- Old-age Pension Increase: The pension has been raised to $41,000, fulfilling a People’s Progressive Party/Civic (PPP/C) manifesto promise, injecting $4.5 billion into the pockets of pensioners annually.
- Public Assistance Boost: This will increase from $19,000 to $22,000, providing an additional $1.4 billion for people with disabilities.
- Because We Care Cash Grant: This has been increased to $50,000, benefiting over 200,000 school-age children from public and private schools. Coupled with a $5,000 uniform support, families receive $55,000 per child for educational expenses.
- Universal Health Voucher: Each Guyanese will receive a $10,000 health voucher to encourage regular health check-ups.
- Support for New Mothers: A one-time $100,000 cash grant for mothers of newborns will boost family incomes by $1.3 billion.
Tax Adjustments
To alleviate financial pressures:
- Income Tax Threshold Increase: The monthly income tax threshold will be raised to $130,000, benefiting 22,000 individuals and adding $8.5 billion to workers’ disposable income.
- PAYE Reduction: The Pay as You Earn tax rate will decrease from 28% to 25%.
- Tax-Free Overtime and Second Job Earnings: The first $50,000 of monthly overtime and second job earnings will be tax-exempt, costing the government $600 million annually.
- Excise Tax on Fuel and Freight Cost Reduction: Continuation of the excise tax removal on petroleum products and freight cost reduction will cost over $96 billion annually.
Additional Economic Initiatives
- Part-Time Jobs Initiative: This program will be extended, costing $11 billion. It will support household incomes while equipping participants with valuable skills.
- Support for Vulnerable Groups: $10 billion is allocated for individuals eligible for NIS pensions but who have not made the required contributions.
- Agricultural Sector Support: Removing VAT on agricultural machinery and backup generators and a new tax policy for poultry farmers will cost the state over $1 billion annually.
- Free Tertiary Education: A $13.1 billion allocation will support the University of Guyana’s free tertiary education initiative, which will benefit over 11,000 students.
Infrastructure and Energy Projects
- Bridge Toll Abolition: Tolls will be abolished once the new Demerara River Bridge and the Berbice and Wismar-Mackenzie bridges are operational.
- Gas-to-Energy Project: The completion of this project is expected to cut electricity costs by 50%.
Dr. Singh emphasized that the budget, presented just eight months before the dissolution of the 12th parliament in anticipation of the general and regional elections, is designed to exceed the government’s 2020 manifesto commitments, ensuring Guyanese families can thrive and accumulate wealth independently.
Finally, Dr Ashni Singh has delivered what can genuinely be called the best budget ever presented by a finance minister. This budget addresses the needs of all sectors of society, including the public and business enterprises. It lays a remarkable foundation for the country’s progress, paving the way for an improved standard of living for every Guyanese.