Budget 2026 provides some $150B in cash transfers for a nation under 1 million people – Pres. Ali

Budget 2026 caters for some $150 billion in cash transfers for a nation of under one million people, President Dr Irfaan Ali has pointed out as he highlighted rising disposable income among Guyanese driven by lifestyle changes.

Speaking during a prerecorded discussion with women in the private sector on Monday, the Head of State said there are multiple indicators showing an increase in disposable income among citizens.

While noting that cash transfers alone are not the solution to national growth and development, he said they play an important role in supporting households and improving quality of life.

Through the government’s various cash transfer initiatives included in Budget 2026 – many of which are rollover programmes that saw increased funding – President Ali asserted that many families and households are now growing their savings, which can be used to meet other needs.

Once Budget 2026 is passed, the “Because We Care” cash grant will increase to $60,000 per child, benefitting some 206,000 children.

President Ali highlighted that this translates to in excess of $12 billion in direct transfer to the population.

Coupled with the $100,000 per adult citizen cash grant initiative, he noted that this represents an accumulative $72.4 billion being disbursed directly into the hands of citizens.

There is now the annual transportation grant for students, pegged at $20,000 per child.

“That’s another $4.1 billion…You’re already at $77 billion with those three measures alone,” the President noted, reminding too that every newborn to a Guyanese mother in the country is entitled to $100,000.

He further outlined that Old Age Pensioners will now get $46,000 per month, an annual cost of $52 billion, as well as a $20,000 transportation grant. Additionally, the public assistance programme will see $25,000 per person being distributed.

“So, you’re talking, cumulatively, about close to maybe $150 billion of cash transfer in a country with less than a million persons, going out there,” President Ali remarked.

Tax Relief

Disposable income is also increased through the various tax relief measures introduced in Budget 2026, the Head of State explained.

“Tax relief is more money in your pocket, taking home more money,” he posited, highlighting that the increase of the income tax threshold from $130,000 to $140,000 will remove some 5000 persons from the tax register.

“That is putting billions of dollars, additional dollars, into the economy, into people’s pockets directly. So, you’re going home with more money. So, if you’re working $140,000, you have no taxes. You take that home, straight home,” the President emphasised.

The President pointed out that the removal of personal property tax is another way in which individuals can retain more of their monies earned.

Additionally, he said the adjustments of taxes on the importation of various categories of vehicles ultimately benefit the consumers.

Budget 2026 caters for the removal of VAT on new vehicles below 1500 cc (vehicles less than four years old), to reduce the cost of importation. It also makes provisions for VAT to be removed on hybrid motor vehicles below 2000cc.

The government will also introduce a flat tax of $2 million on double-cab pick-ups less than 2,000 cc, irrespective of age; and $3 million on double-cab pick-ups between 2,000 cc and 2,500 cc, irrespective of age.

Additionally, the government will remove all import duties and taxes on all-terrain vehicles (ATVs) for all categories. Similarly, all taxes and duties for outboard engines up to 150 horsepower will be eliminated to further reduce the cost of transportation within hinterland and riverain communities.

Other Interventions 

The President explained that there are many other programmes being rolled out by the government, all aimed at ensuring citizens keeping more money in their pockets and that their lives improve.

In the area of education, for example, he explained that beyond cash grants, parents, guardians and students benefit significantly from other initiatives.

“You have the government paying for eight subjects for CXC. You have the national school feeding programme, free education at University [of Guyana], the GOAL scholarship programme, the hinterland scholarship programme. This is tens of thousands of children, hundreds of billions of dollars that you would have otherwise paid for these services that you’re now saving,” the President emphasised.

He also spoke about the government’s housing programmes, which are making homeownership more accessible for citizens. This year, the low-income mortgage ceiling will move from $20 million to $30 million, which will make housing loans at commercial banks more affordable to borrowers.

This year also, the government will continue direct assistance to homeowners with $7.5 billion allocated to support upgrades to homes.

President Ali further highlighted that citizens are saving as a result of the government’s decision to keep freight charges to pre-pandemic levels for the calculation of import taxes. This was done in 2021 and has been extended every year since. Again, Budget 2026 caters for another 12-month extension.

He noted that citizens are also saving as a result of government’s measure, first introduced in 2022 and which will be continued this year, to maintain a zero percent excise tax on petroleum products, forgoing an estimated $100 billion in annual revenue.

Lifestyle Changes 

President Ali emphasised that the lives of many citizens continue to improve under the PPP/C administration, as reflected in the simple, everyday advancements in their daily activities.

“Someone will complain and say to you, ‘it’s really expensive to fuel up the car this month’. But that same person, a year ago, did not have a car,” he pointed out.

“So, it’s changes in living condition and style also. So, with increasing improvement in that disposable income, you will see structural changes. You know this, those who are in restaurant, fast food, or fine dining business, you will see more people going out to eat. That is not accidental. That’s a function of disposable income, giving you the opportunity to experience something that you would have never experienced before,” he added.