Govt measures shielding citizens from billions in fuel, utility, food, and other costs – Pres. Ali

Noting that Guyana has the lowest inflation rate in the Latin American and the Caribbean region, President Dr Irfaan Ali highlighted that Budget 2026 continues to ease cost-of-living pressures, with the government absorbing billions of dollars in costs that would otherwise be passed on to consumers.

In a live broadcast on Wednesday, the President reminded that since the Peoples Progressive Party Civic (PPP/C) administration returned to office, it began to address issues relating to the rising cost of living.

“We removed VAT on fertilisers, agrochemicals, pesticides that benefit directly every single farmer whether you are small, medium or large scale. We removed VAT on machinery and equipment used by farmers using mining. We reversed the 220% increase in D&I charges and the 600% increase in land rental that was imposed upon farmers by the then APNU+AFC government. So, we have demonstrated in all of our budgets and all our policies, strategies that are focused heavily on reducing costs,” he outlined.

The President posited that Budget 2026 carries on this tradition.

For instance, he explained that increasing local food production is a key way to ease cost-of-living pressures, an area in which the government continues to invest heavily.

“The investment we are making in Budget 2026 will open up tens of thousands of acreage of new farmlands. Who will benefit from these farmlands? It is the ordinary farmers… We removed corporate taxes on interest earned by banks on poultry sector so that the cost of production will go down, so that our farmers can benefit whilst the general population will benefit from lower local prices. We went a step further in Budget 2026 by removing all taxes on agriculture and agro-processing. All of this would lead to greater confidence in agriculture, greater lending, lower cost of production, greater access to capital, and all will lead to greater production, higher levels of production, which will result in lower costs and greater supply,” President Ali noted.

He 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.

Additionally, the President pointed out that citizens are benefitting from the government’s interventions to keep water and electricity prices stable.

“We have not increased electricity and water tariffs. We have also given back the subsidy to old-age pensioners, and Budget 2026 will continue to finance this. That is close to $50-$60 billion of investment in the water sector alone and billions of dollars over the last five years on electricity and water subsidy. The removal of VAT on electricity and water and medical supplies is costing us about $4 billion annually. Those are expenditures we are taking away from the ordinary Guyanese,” he outlined.

President Ali said other measures implemented to ease cost of living pressures include making homeownership more affordable, the reintroduction of the one-month tax free bonus for discipline services ranks, and the various interventions in the education sector including the ‘Because We Care’ cash grant.

Budget 2026 specifically sets aside $9 billion to fund programmes aimed at reducing cost of living pressures particularly on vulnerable groups across the country.

Meanwhile, President Ali also highlighted that inflation in the Latin American and Caribbean region is estimated at 6.5 percent in 2025 but Guyana’s was recorded at 2.5 percent – the lowest in the region.

This year, the inflation target is 2.5 percent, as the government intends to maintain exchange rate stability, while supporting continued expansion in private sector credit and domestic economic activity.

“Budget 2026 not only introduces new measures. Budget 2026 is absorbing hundreds of billions of dollars of measures we have already implemented, to ensure those benefits continue for the Guyanese families. Ninety-five percent of budgets globally are cutting back on measures, are pulling back measures like we would have introduced here in Guyana. We are continuing the financing of those measures while at the same time we build out new measures to create more wealth, expand more income opportunity and build stronger families,” President Ali emphasised.