By Tiana Cole | HGP Nightly News|
— President Dr. Irfaan Ali has stepped forward to robustly defend the Government’s record-breaking $1.558 trillion Budget 2026, dismissing opposition claims that the nation’s economic growth is merely an “artificial byproduct” of state spending. Addressing the nation, the President asserted that Guyana is witnessing a genuine, production-led transformation of the non-oil sector.
Non-Oil Growth: The New Economic Anchor
Central to the President’s defense is the performance of the non-oil economy, which expanded by 14.3 percent in 2025. Dr. Ali argued that this growth reflects increased output from Guyanese businesses and farmers rather than simple government transfers.
“The claim that growth is driven by government spending rather than a strong non-oil economy reflects a fundamental misunderstanding of basic macroeconomics,” the President stated. He pointed to significant production surges across multiple traditional and emerging sectors in 2025:
- Construction: 31% expansion
- Manufacturing: 20% expansion
- Agriculture: 11.5% expansion
- Bauxite: 53.4% expansion
Strategic Spending vs. Stagnation
Responding to critics who label the $1.558 trillion budget as excessive, the Head of State explained the dual-purpose nature of the government’s fiscal policy. He distinguished between capital expenditure, which builds the structural foundation for future productivity, and recurrent spending, which provides immediate relief to households.
“If we do not carry out capital expenditure that increases productivity, creates jobs, attracts investment, and expands the economy, then growth will stagnate,” Ali warned. “The idea that Government spending alone drives growth… is not only false but frankly comical.”
Job Creation and Disposable Income
The President also highlighted the social dividends of the current economic trajectory. He noted that the unemployment rate has been slashed by more than half, falling from 12.8 percent in 2020 to 6.8 percent by late 2024.
The 2026 Budget, themed “Putting People First,” introduces several measures to further increase disposable income, including:
- Increased Income Tax Threshold: Raised to $140,000 per month.
- Old Age Pension: Increased to $46,000 per month.
- “Because We Care” Grant: Increased to $60,000 per student.
- Mortgage Support: Increased low-income mortgage ceiling to $30 million.
President Ali concluded that the 2026 budget is a “stabilizing force” designed to shock-proof the economy and ensure that the benefits of the oil and gas sector are channeled directly into the pockets and productivity of every Guyanese citizen.
