Friday 13 February 2026
Guyana has presented its largest national budget on record, with Finance Minister Ashni Singh tabling a GY$1.558tn (US$7.48bn) fiscal package in parliament.
Themed “Putting People First,” Budget 2026 is the first by the ruling People’s Progressive Party/Civic since its landslide victory in the September 2025 elections, and is 12.7% larger than the previous year’s budget.
In a six-hour presentation to the National Assembly, Singh said the budget is designed to ensure Guyana’s rapid growth delivers tangible benefits. “Budget 2026 is designed to translate sustained economic expansion into tangible investments that improve livelihoods, strengthen communities, and modernise national infrastructure,” he said.
Guyana’s economy grew by 19.3% in 2025, while the non-oil economy expanded by 14.3% across agriculture, mining, construction, manufacturing and services.
Housing, education and agriculture dominate the expenditure framework. Housing programmes are allocated roughly US$763mn, supporting expanded access to affordable homes, infrastructure upgrades and subsidies for home improvement.
Education receives about US$881mn, earmarked for new and rehabilitated schools, teacher training, and skills development aligned with a modern, diversified economy. Agriculture and agro-processing are allocated around US$544mn, aimed at strengthening food security, boosting rural livelihoods and supporting value-added production.Infrastructure investment remains one of the largest spending items, with US$941mn set aside for roads, bridges and transport networks to improve national connectivity and support commerce. The energy sector will receive about US$573mn, focused on lowering electricity costs, improving reliability and supporting industrial growth.
Singh said these allocations are not routine spending items, describing them as “investments that build the foundation of a more prosperous and secure society.”
Social protection also features prominently. Around US$376mn is earmarked for children, women, the elderly and vulnerable groups, alongside US$36mn for Amerindian community development. Measures to boost household incomes include higher old-age pensions, increased public assistance, and the continuation of the National Cash Grant, which provides a cash transfer to every adult Guyanese.
Tax relief measures were another headline announcement. Singh confirmed that the income tax threshold will rise to GY$140,000 (US$671) per month, removing 5,000 people from the tax net. “This will result in the removal of 5,000 persons from the tax net whilst adding over GY$2bn [~US$9.6mn] in disposable income to workers,” he said.
Additional measures include the removal of net property tax on individuals and the elimination of VAT on selected locally produced goods, vehicles below 1500cc, and certain hybrid vehicles. The government also outlined steps to reduce the cost of vehicle ownership by removing duties and taxes on outboard engines and ATVs.
Oil revenues continue to underpin the fiscal framework. Budget documents project US$2.4bn in profit oil and US$375mn in royalties from the ExxonMobil-operated Stabroek Block in 2026. Withdrawals from the Natural Resource Fund are projected to increase steadily, climbing from US$2.37bn this year to US$2.62bn in 2027, then to US$2.92bn in 2028, reaching US$4.33bn by 2029. However, the fund’s balance is forecast to grow to US$11.7bn over the same period, reflecting surging petroleum revenues.
The opposition has strongly criticised the budget. Opposition Leader Azruddin Mohamed argued that size alone does not guarantee improved welfare. “The Government wants the nation to believe that because the budget is the largest in our history it will automatically produce the best outcomes, but bigger budgets do not equal better lives,” he said, accusing the administration of failing to adequately address cost-of-living pressures.
Singh rejected those criticisms, insisting the fiscal package is carefully targeted and growth-oriented. “These are not expenditures of convenience, they are investments in productivity, resilience, and a better Guyana, a Guyana where all can prosper, and a Guyana where ability and effort are rewarded,” he told Parliament.As Guyana approaches its 60th independence anniversary, Budget 2026 marks an ambitious, oil-backed push to continuously reshape the economy—one the government insists will put people first, but which will face intense scrutiny as implementation unfolds.
Source: Caribbean Insight – Volume 48, Issue 3