The People’s Progressive Party/Civic (PPP/C) on Friday unveiled its sixth budget since returning to office on August 2, 2020. However, the GY$1.38 trillion Budget, presented under the theme “A Secure, Prosperous, and Sustainable Guyana,” has been widely condemned as an electioneering maneuver filled with deception and bereft of meaningful solutions for Guyanese citizens.
Former Minister Annette Ferguson has sharply criticised the budget, stating that it is “not geared towards bringing relief to the vulnerable and less fortunate in Guyana,” but rather serves to enrich the PPP/C’s loyalists at the expense of ordinary citizens.
In a conversation with this publication Ferguson argues that despite Guyana’s booming oil economy, the budget has failed to deliver tangible benefits to the people. “Our citizens have not felt the effects and impacts from oil resources since 2021, and Budget 2025 will not make a difference,” she declared.
Since Guyana started producing oil in December 2019, the country has shot up the world’s economic ladder, holding envious titles such as the world’s fastest growing economy and the richest per capita. From December 2019 to December 2024, Guyana has received a total of US$5.4 Billion in revenue from oil and oil.
Ferguson specifically lambasted the government’s tax reforms, questioning how the new measures, such as tax exemptions on overtime or second jobs, would improve lives in a meaningful way. “Is the government suggesting that citizens should take on security or bar work after already long workdays just to make ends meet? This is not a livable solution,” she said.
Commentators, including GHK Lall, have also weighed in, branding Budget 2025 as “callousness in numbers” and a “hatchet budget” that slashes any remaining hope for Guyana’s poor. Lall pointed out the absurdity of a country with top-tier GDP growth delivering so little to its citizens.
“With billions earned from oil sales, the government has yet again shown its callousness,” he remarked, referencing the paltry increase of GY$5,000 for pensioners, which raises the old-age pension from GY$36,000 to GY$41,000. “What is GY$5,000 in an economy plagued by soaring prices and an unaddressed high cost of living?”
Ferguson echoed this sentiment, highlighting the struggles of pensioners who depend solely on this income. “The cost of basic commodities has skyrocketed, and healthcare bills for many elderly citizens far surpass GY$41,000,” she said. “This budget does nothing to alleviate their suffering.”
Lall and other critics have also lambasted the PPP/C for its lack of a comprehensive development strategy and its tendency toward sloppy planning, which they argue creates more opportunities for corrupt practices.
The government’s response to Guyana’s high cost of living and systemic inequality has been labeled as inadequate and tone-deaf.
Inspite of this wealth at least half the nation is poor, according to a recent World Bank Fact Sheet, though critics think the numbers may be far higher when the working poor and other vulnerable groups are factored in. Basic services such as public transportation is no-existence, universal health deva in tatters, public education substandard, power outages rampant, potable water not universal and poor where it exits, road infrastructure sloppy.
While the budget includes a modest increase in the income tax threshold from GY$100,000 to GY$130,000 and a GY$10,000 monthly tax credit for families with children, Ferguson dismissed these measures as insufficient. “Many who earn below GY$100,000 will still face significant hardships,” she said. Lall underscored the triviality of these relief measures, calculating that workers and parents would be better off by just GY$17,083 monthly—amounting to a mere GY$569 (US$2.64) per day.
The critics also noted that the budget continues to perpetuate a state of dependency rather than empowering citizens. “The government seems intent on keeping Guyanese dependent, rather than creating an environment where they can earn a livable wage and thrive,” Ferguson stated.
The glaring disparities between Guyana’s immense oil wealth and the conditions of its citizens have drawn increasing scrutiny. Ferguson concluded by stating that “Budget 2025 is not people-focused but one that favours the PPP/C elites,” a sentiment echoed by Lall, who described the budget as a cruel farce designed to mislead the public while failing to address their dire needs.
The calls for accountability grow louder as more Guyanese question why their lives remain stagnant amidst the country’s celebrated oil boom. The critics demand a budget that truly reflects the aspirations and needs of the people rather than perpetuating inequality and enriching the few.