‘This is just the first instalment of real benefits’ – Guyana Chronicle

–Budget 2026 puts people first through growth-focused fiscal measures, investments, President Ali

FROM direct cash transfers to investments in targeted fiscal measures, Budget 2026 themed ‘Putting People First’, charts the way forward in realising the People’s Progressive Party/Civic (PPP/C) administration’s vision for growth and development.
This was according to President Dr. Irfaan Ali, during a video posted on his official page, on Tuesday.
The President said this year’s fiscal package brings to life the government’s five-year development plan.
“What is interesting is if you look at Budget 2026, it is actually telling a story that we may very well surpass every single one of the commitments we made, because in this first instalment of real benefits, more benefits for the people, you will see a clear direction as to how the investments are being made to improve lives, expand income, create more disposable income, create jobs, give you safer community, better health care and education,” the President reasoned.
He said that the measures in this year’s fiscal package go just beyond cash transfers, with the government implementing policies and creating investment engines to support small businesses, co-investment opportunities and create better facilities for the delivery of enhanced health and education.
The Head of State said: “We have direct cash in people’s hand, and many times, people only look at this measure, direct cash transfer, which is only one of the methods through which we are transferring wealth, creating wealth and opening up opportunities.”
During his budget presentation on Monday, Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh told the National Assembly that the government, in 2026, will introduce Special Development Zones with fiscal incentives intended to attract investment into strategically selected locations.
This will complement anticipated reductions in electricity costs that are expected to significantly improve the competitiveness of manufacturing operations when the flagship Gas to Energy (GtE) comes on stream.
In addition to this, the 2026 budget makes provisions for the removal of corporate taxes on agriculture and agro-processing which is expected to free up resources for reinvestment.
The fiscal package also creates space for the expansion of export allowances to include value-added forestry products and the removal of VAT on locally made furniture and jewellery.
This, the Finance Minister said, will lower production costs, incentivise downstream processing and strengthen the capacity of local industries to compete in regional and international markets.
COST OF LIVING AND MORE DISPOSABLE INCOME
To ease cost-of-living pressures, the minister said the government will maintain the zero percent excise tax on fuel, a measure in place since 2022 which has helped shield households from global trends. Budget 2026 will also extend relief on freight charges used to calculate import taxes.
Meanwhile, an additional $9 billion has been set aside in 2026 for further cost-of-living support.
Assistance for children and the elderly will also be expanded, with the Because We Care grant increasing to $60,000 per child, the introduction of a $20,000 annual transportation grant for schoolchildren, this with the $5000 uniform voucher will see each child receiving $85,000.
This will reflect in an estimated $12.4 billion being transferred to parents under the Because We Care programme.
Support will also continue to cover examination fees for Caribbean Secondary Education Certificate (CSEC) and Caribbean Advanced Proficiency Examination (CAPE) benefitting some 14,000 students.
The elderly will see an increase in old age pension to $46,000 per month, and benefit from an annual transportation grant of $20,000, providing an additional injection of $1.9 billion in support.
Measures to raise disposable income include higher stipends for community-based workers, the return of the $100,000 national cash grant for adults aged 18 and above, the removal of net property tax on individuals and an increase in the income tax threshold to $140,000 per month, with the minister estimating that these fiscal measures will place more than $100 billion into the hands of citizens.
The government announced, too, the continuation of the $100,000 grant for every newborn child.
These measures, President Ali had said are placing direct cash transfers into the hands of families.
“When you add those direct transfers, those direct cash transfers, we’re talking about hundreds of billions of dollars that has been pumped into the pockets, that is being pumped into the homes of the elderly, children, women, single mothers [and] newborn babies,” the Head of State said on Tuesday.
He noted too that a large component of the fiscal package pushes for savings through improved services, particularly reducing out of pocket health costs.
“Let’s look at the example of health care and access to health care, because if you have better health care, you have to spend less money on medication, less money on private doctors and private hospitals. That is a saving to you if you don’t have to buy the spectacles that you need, if you don’t have to pay for the dental service that you need. All of that is savings that come back directly to you,” he said.
Additional tens of billions of dollars will be pumped into providing improved access to services and care for the elderly, children living with disabilities and other vulnerable groups.
These fiscal measures will supplement the efforts that have already been made to enhance primary care, the President said, citing the government’s previous policies to address the cost of dialysis treatments for diabetic patients across the country.
“Even though we’re giving the grant, we are also putting dialysis facilities and machine in every single one of the regional hospitals. So, we’re expanding Georgetown, and we’re putting in every single region, whilst at the same time, we are giving you this grant. We are expanding telemedicine, the mobile health units, the virtual health clinics for the elderly with primary health care,” Dr. Ali said.
In 2026, the government is also moving to further streamline the delivery of healthcare at the community level, improving access to medication, services and strengthening the country’s Emergency Medical System (EMS) with the establishment of a medical emergency authority.
“All of these things lead to savings in the healthcare system. The building out of level five hospitals and level four hospitals in almost every single region. Already, the new hospitals, regional hospitals that we would have commissioned, would have provided service to tens of thousands of Guyanese, “he added.
‘WE ARE NOT HOLDING BACK’
The President noted as well that the government’s people centred agenda is a clear rejection of critics, who seek to undermine the government development efforts, reminding that that the administration has a full five-year mandate to deliver and exceed its promises.
“We have five years. We have five years. The naysayers believe that we have six months or one year you elected us for five years to fulfil and surpass our commitment, and I assure you, we will do just that together. We’re going to do great things together,” he said.
President Ali maintained that Budget 2026 is just the beginning of a broader transformation programme, with the repeated philosophy that “putting people first” will remain at the heart of its policy agenda.