Dear Editor,
Extensive analysis has been conducted on the 2026 budget. A national budget functions as both a strategic financial plan and a framework for guiding the country’s economic and social progress. This discussion focuses on three key aspects: the budgetary process, oil revenues, and the effect on households. The central goal of the 2026 budget is to improve the quality of life for all by pursuing a people-centered strategy towards development.
While preparing the 2026 budget, the PPPC held many community consultations with major stakeholders—including the PSC, Trade Unions, GMSA, NDCs, ROs, and various business and community groups—and conducted research. Information from these efforts and the PPPC manifesto was integrated with the party’s four main strategic plans: the National Development Strategy (NDS), Poverty Reduction Strategy Papers (PRSP National Competitive Strategy (NCS), Low Carbon Development Strategy (LCDS), as well as data from the 2022 Census. According to the budget speech (1:7), these documents collectively “provide the basic necessities of a comfortable life and are readily available to the Guyanese people,” while also supporting balanced development across regions.
Recognising that uneasiness persists among certain segments of the society regarding cost-of-living challenges, allegations of corruption, and perceived uneven development, as well as the need to control inflation, budget planners ensured that the budget reflects balanced growth, fairness, transparency, affordability, accountability, sustainability and inclusivity, while maintaining a sustainable national debt-to-GDP ratio at 26%. It aligns with the constitution, current laws (including AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) requirements, and international agreements. They also consider local and global market impacts, such as inflation, interest rates, and exchange rates.
To avoid the resource curse that occurred in some oil-producing nations, budget planners allocated oil revenues to develop non-oil sectors and keep the NRF stable. In 2025, oil funded 37% of the budget; this is expected to drop to 31.7% in 2026, with withdrawals decreasing from $(US)2.463 billion to $(US)2.374 billion. Oil revenues for 2026 are projected at $(US)2.8 billion, and the year-end NRF balance at $(US)3.716 billion. Disbursements from the NRF must comply with the 2021 Act, allowing uses like inter-generational equity, emergency, and budget support. The Act defines the withdrawal formula, requires parliamentary approval, and mandates public disclosure of all withdrawals.
Emphasising people in development does not bring instant prosperity; progress is gradual. Poverty will not disappear immediately, but is expected to steadily decline, possibly reaching single digits by 2030. The cited 58% poverty rate is outdated—according to Professors Tarron Khemraj and Randy Persaud, who analyse a 2023 UNDP report on Human Development Index (HDI), “only 1.8% of the population, approximately 15,000 individuals, is classified as experiencing multidimensional poverty, with another 54,000 (or 6.1% of population) classified as vulnerable” (SN:2/5/26). The PPPC government continues its efforts to reduce poverty and continually improve people’s lives.
Budget 2026 is designed to empower citizens by supporting education, job opportunities, healthcare, housing, and offering interest-free loans without collateral for marginalised groups. It also dedicates funds for improving community infrastructure, such as drains, roads, parks, water supply, electricity, and neighbourhood safety. Among its direct benefits are free education (including skills training); free healthcare; land title provision; home ownership opportunities; various subsidies and cash grant such as $85,000 for each school child and one-off cash grant of $100,000 for persons 18 years and over. These and other grants plus subsidies amount to tens of billions of dollars.
According to JC Bhagwandin, 51% of household income—excluding remittances—is derived from government grants and subsidies; however, the extent of variation (standard deviation) from this average remains undetermined. It is observed that low-income households are more reliant on these sources than middle-income groups, while the share for upper-income households is estimated to be below 5%. Conducting a sample survey would provide greater clarity regarding these differences across income segments. Many of these initiatives—cash transfers, subsidies, and incentives—are currently funded mainly by oil revenues, but future support is expected from returns on investment in infrastructure projects and other non-oil sectors like agriculture and manufacturing. Overall, PPPC supporters are confident in the 2026 budget, pointing to the party’s success in fulfilling its 2025 manifesto promises and launching extra initiatives like large-scale home construction.