Private Sector Commission gives budget stamp of approval
The Private Sector Commission (PSC) has given the 2024 budget its stamp of approval while describing it as a testament to the administration’s dedication to fostering economic growth, promoting social development, and ensuring the well-being of all Guyanese citizens.
These remarks were made in a release by the Commission yesterday, where it was also pointed out that the budget which totalled $1.146 trillion, represents the largest allocation in the nation’s history.
The PSC also spoke of the “government’s dedication to economic diversification and sustainability” citing the key highlights of the budget which include the “impressive” 33 per cent growth in Guyana’s real economy in 2023, coupled with an 11.7 per cent expansion in the non-oil sector. These “key highlights” touched on budgetary allocations to key sectors such as agriculture, drainage and irrigation, infrastructural works, small business development, income tax, health, housing, water, and waste management development, and education.
The release noted that the agriculture sector was allocated a substantial $97.6 billion, focussing on revitalisation through significant investments in drainage and irrigation infrastructure to boost productivity and enhance food security. Further, the $204.1 billion allocation for upgrading roads and bridges was a “reflection of continuous dedication” to improving transportation networks and river transport, positively impacting trade and connectivity.
The PSC expressed its approval of government’s efforts to promote small business through measures such as reducing interest rates on loans lower than $5 million and posited that the replenishment of the Small Business Development Fund is “crucial” for supporting small business growth. Additionally, it sees the removal of VAT on technology and the increase in the income tax threshold to $100,000 as contributing to increased disposable income, while fostering economic resilience and growth.
Referring to the allocation of $129.8 billion to the health sector as “commendable” the release stated that this is expected to enhance healthcare services, contributing to the overall well-being of the Guyanese population, while commenting that the budget’s emphasis on housing, water, and waste management development, “reflects a holistic approach to addressing citizens’ fundamental needs.”
The Commission also expressed
appreciation for the “substantial” allocation for social services, and Indigenous and hinterland development. This it stated, recognises “the importance of inclusive growth across all regions of Guyana. Further-more, fiscal measures such as maintaining zero excise tax on fuel, extending the application to freight cost adjustment, and implementing measures to alleviate the impact of the cost of living, demonstrate the government’s responsiveness to the needs of every Guyanese.”
The allocation of $129.8 billion to the health sector also came in for praise as well as the budget’s emphasis on housing, water, and waste management development, which the release opined, “reflects a holistic approach to addressing citizens’ fundamental needs,” and the “substantial” allocation for social services and Indigenous and hinterland development, “recognizing the importance of inclusive growth across all regions of Guyana.”
The PSC also noted the maintaining of zero excise tax on fuel, the extending of the application to freight cost adjustment, and the implementing of measures to alleviate the impact of the cost of living. It also lauded the launching of the initial phase of eliminating outstanding university student loans, a minimum pension increase to $43,075, the option for eligible contributors aged 60 to receive a one-off grant, subject to stipulations, and the increasing of the income tax threshold from $85,000 to $100,000 per month. These measures, the release noted, underscore the government’s dedication to citizens’ financial security.
“The Private Sector Commission looks forward to collaborating with the government in realising these ambitious initiatives and contributing to the continued prosperity of Guyana,” the release added.