The whopping $552.9B Budget for 2022, that was presented by Finance Minister Dr Ashni Singh on January 26, was today passed by the National Assembly.
This follows a series of heated debates and intense scrutiny of the budgeted estimates over the past two weeks.
From the consideration of the budget estimates, Members of Parliament had the opportunity to quiz government representative on how they intend to spend the monies allotted to their respective sectors.
Budget 2022, under the theme “Steadfast Against All Challenges, Resolute in Building Our One Guyana”, is set to lay the foundation for Guyana’s massive economic transformation and modernisation. It also contained the use of the country’s earnings from the oil and gas sector for the first time to finance several major developmental projects.
The Finance Minister had said Budget 2022 has two main goals: to ensure the urgent development needs of the country are met in the shortest possible time and to guarantee the long-term economic wellbeing of the nation.
Among the exciting measures announced aimed at addressing the rising cost of living is the increase of old age pension to $28,000 and the increase in public assistance to $14,000. Additionally, there is an increase in the “Because We Care” cash grant to $25,000 and an increase in the uniform allowance to $5000.
There is also a significant increase in the income tax threshold to $75,000. This will place an additional $1.3 billion into the hands of current taxpayers both in the public and private sectors.
Dr Singh also announced the further lowering the excise tax rate on gasoline and diesel from 20 per cent to 10 per cent, which will result in significant reductions in the prices of fuel.
He also announced significant reductions in the excise taxes for several categories of trucks and pick-ups. This, according to the Finance Minister, is in the interest of ensuring that Guyanese businesses are equipped to compete successfully in the oil and gas sector under the new local content framework.
Budget 2022, which is 44.3 per cent larger than last year’s and 36.6 per cent above total expenditure in 2021, is fully financed with no new taxes. One of the most unique features of Budget 2022 is that it proposes withdrawals from the US$607.6 million oil fund. With the entire $126.7 billion being used from the Natural Resource Fund (NRF) to partially finance the budget, earnings from this year will see the oil fund being replenished with over US$957.6 million this year.
Meanwhile, since the presentation of Budget 2022, stakeholders from various sections of society have lauded the Government’s fiscal plan, saying that it strikes as balance between public and private development as well as the enhancement of citizens.
In addition, President Dr Irfaan Ali has also described the Budget as people-centred during a live broadcast to highlight its merits and how the policies outlined are interconnected to improve the lives of Guyanese.
According to the President, Budget 2022 lays the groundwork for further development, and he encouraged persons to look at it in a holistic manner. President Ali also spoke of how his Government’s fiscal plan for this year comprehensively addresses the day-to-day lives of Guyanese while also simultaneously detailing plans for national prosperity, job creation, expanding the economy and enhancing productive capacity.
“This is how the budget impacts ordinary people… by hardcore, structural, targeted policies and programmes that enhance the lives of Guyanese,” the Head of State noted.
