Budget 2025 allocates billions to cost of living relief, senior citizens, public assistance

A substantial amount of $42.8 billion has been budgeted in 2025 to ensure senior citizens enjoy their golden years in comfort. A report from the government’s Department of Information (DPI) said that from this amount, the government has proposed a whopping $298.1 million for water subsidies for more than 35,000 senior citizens.

This reflects an increase of some 2,000 additional persons benefitting in 2025 compared to the 33,000 beneficiaries in 2024. “It is evidence that the government is committed to ensuring the needs of the elderly population are adequately met,” the agency stated.

In addition to the water subsidies, another basic need is being provided in the form of electricity subsidies for 29,000 senior citizens nationwide. This amounts to a budgetary allocation of $882 million.

These interventions were highlighted last Friday during the 2025 budget presentation by the Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh in the National Assembly. Additionally, the Guyana government has increased seniors’ pensions to $41,000 from 36,000 last year. Public assistance is expected to increase from $19,000 to $22,000, adding $1.4 billion to the support of persons living with disabilities.

Outside of this, the government will increase the “Because We Care” cash grant to $50,000 up from $45,000 last year. The government has also added a $10,000 universal health voucher to its list of measures supporting local health care. The mothers of newborn babies will also receive a one-off cash grant of $100,000 this year. Additionally, one parent of a child may claim an extra $10,000 tax deduction for each child every month.

To address the cost of living the government intends to allocate $9billon towards measures discussed during interactions with the public ahead of budget 2025. Effective January 1, 2025, the government increased the income tax threshold to $130,000 monthly up from $100,000 last year. Persons who are eligible for a NIS pension but fail the contribution threshold will also receive a one-off cash grant. The Pay As You Earn (PAYE) Tax Return will also be reduced from 28 percent to 25 percent. It was noted too that persons with a second job, i.e. additional to their full-time job, will benefit from the first $50,000 on their income being non-taxable. The government said it will also spend $ 11 billion in 2025 to further extend its part-time job initiative.

The government reminded of its intention to cut electricity costs by 50 percent with the budding gas-to-energy project and announced the abolishing of all bridge tolls on the completion of the new Demerara River Bridge, as well as the Berbice and Wismar-Mckenzie bridges.

In the meantime, the government said it would maintain the cost of fuel with the removal of excise tax on petroleum products, costing the State over $90 billion; as well as, maintaining freight cost reduction to the tune of $ 6 billion. In keeping with their free tertiary education initiative, the government has allocated $13.1 billion for the studies of over 11,000 new and current students at the University of Guyana. The government is also expected to complete its distribution of a one-off national cash grant which commenced last year. The government is expected to expend around $60billion on this initiative.