2024 Budget: Increased Income Tax threshold, Old Age Pension, public assistance, and UG student loan cancellations

Last Updated on Monday, 15 January 2024, 20:51 by Denis Chabrol

Finance Minister, Dr Ashni Singh 0n Monday announced in the GY$1.1 trillion National Budget that government would begin phasing in free university education only if borrowers could prove they were employed in Guyana.

“We will commence the first phase of eliminating outstanding loans offered by graduates of the University of Guyana. On condition these graduates can demonstrate proof of being employed or self employed in Guyana after their graduation for a minimum period to be specified,” he told the National Assembly.

He also said Guyanese who now work for GY$100,000 or less per month would no longer have to pay income tax. That means, he says, that 13,000 more persons will be removed from income tax roll resulting in GY$4.8 billion in disposable income being transferred to workers.

The Finance Minister said the 2024 Budget also comprises allocations totaling GY$121.4 billion for wages and salaries for central government employees, including a salary increase that will be announced later this year.

Other announcements for ordinary Guyanese include:

1. The 76,000 Old Age pensioners will see an increase from GY$33,000 per month last year to GY$36,000 per month
2. The estimated of more than 35,000 Public Assistance recipients will get an increase of GY$19,000 monthly, up from GY$16,000
3. A GY$3,000 voucher will be provided to every child to meet the cost of eye test for over 205,000 schoolchildren and GY$ 76,000, pensioners at a cost of over GY$100 million dollars. A GY$15,000 voucher will be provided to assist with the cost of spectacles
4. Also in the area of health, the Finance Minister announced that in order to encourage testing for cervical cancer, government will provide a voucher of $8,000 for women between the ages of 21 and 65.
5. The current minimum National Insurance Scheme (NIS) pension is increased from GY$35,000 to GY$43,075 which will result in a GY$2.6 billion disposal for the benefit of 27,000 persons. The new minimum invalidity pension is now $43,075.
6. Persons with NIS contributions ranging from 700 to 749 will be asked to consider a full and final settlement which could benefit over 3,800 persons at a cost of $550 million.
7. ‘Because We Care’ cash grant is increased from GY$35,00 to GY$40,000 per child  for 205,000 school children in the public and private school system. That is in addition to the uniform voucher allowance of GY$5,000
8. GY$7 billion has been set aside for cost of living measures to be determined aimed at containing and cushioning the impact of price increases
9. Reduction in the interest rates for small and medium sized businesses that are seeking loans of up to GY$5 million.

The Finance Minister said Guyana’s real economy is projected to expand at a rate of 34.3 percent, and inflation for this year is expected to be 2.5 percent.