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    National Assembly Approves 2025 Estimates of Revenue and Expenditure

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    The National Assembly of Guyana has officially approved the Estimates of Revenue and Expenditure for the Fiscal Year 2025, marking a significant milestone in the country’s budgetary process. This approval paves the way for the implementation of transformative projects and policies aimed at fostering economic growth and improving public services.

    Key Budget Figures

    • Total budget: $1.382 trillion, a 20.6% increase from 2024
    • Projected real GDP growth for 2025: 10.6%
    • Public guaranteed debt to GDP at the end of 2024: 24.3%
    • Budgeted total revenue for 2025: $1.35 trillion
    • Projected inflation rate: 2.8%

    Major Allocations

    1. Ministry of Public Works: $209.3 billion
    2. Office of the Prime Minister: $141.4 billion
    3. Ministry of Housing and Water: $135.8 billio
    4. Ministry of Finance: $131.8 billion
    5. Ministry of Health: $120.9 billion
    6. Ministry of Education: $100 billion
    7. Ministry of Agriculture: $63.7 billion
    8. Ministry of Human Services and Social Security: $58.3 billion
    9. Public Debt: $56.5 billion

    Key Initiatives and Investments

    1. Infrastructure Development:
      • $209.3 billion allocated for upgrading roads and bridges
      • Completion of the new Demerara River Bridge
      • $5 billion to start construction of the new Corentyne River Bridge connecting Guyana and Suriname
    2. Education:
      • The University of Guyana will be tuition-free from January 2025
      • Increase in “Because We Care” cash grant from $40,000 to $50,000
    3. Healthcare:
      • Commissioning of Paediatric and Maternity Hospital at Ogle and six regional hospitals
      • Construction of Medicines Regulatory Laboratory and Office Complex
    4. Energy Sector:
      • $88 billion to improve reliability and reduce electricity costs
      • Operationalization of Kato and Kumu hydropower plants
      • Completion of solar farms in Berbice, Essequibo, and Leguan
    5. Social Welfare:
      • Increase in old age pension from $36,000 to $41,000
      • $10,000 universal healthcare vouchers
      • $100,000 cash grant for every newborn to a Guyanese mother

    Economic Outlook

    • The services sector is projected to grow by 8%
    • Non-oil exports are expected to grow by 20.7% to US$2.2 billion
    • Crude oil export earnings are projected to decline by 2.1% to US$17.6 billion
    • The overall balance of payments is projected to record a surplus of US$561.3 million

    Tax Reforms

    • Personal income tax rate will decrease from 28% to 25%
    • 30% increase in the tax threshold to $130,000

    Challenges and Criticisms

    • Concerns about the focus on increasing budgets without addressing the need for improved quality and efficiency in spending
    • Questions about the effectiveness of tax reforms and the need for a broader tax base2

    The approval of the 2025 Estimates of Revenue and Expenditure represents a significant step in Guyana’s ongoing development. While the budget demonstrates ambitious spending and investment in various sectors, it also faces challenges in terms of execution and efficiency. As Guyana continues to grow, particularly with its expanding oil economy, the effective implementation of these budgetary measures will be crucial in shaping the country’s future and improving the lives of its citizens.

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