President Dr Irfaan Ali says Budget 2026 will see close to $150 billion being placed directly into the hands of citizens through cash transfers and related measures, pointing to growing disposable income and noticeable lifestyle changes across the country.
The Head of State made the remarks during a prerecorded discussion with women in the private sector on Monday, noting that several indicators show that Guyanese are now earning and retaining more money than before.
While acknowledging that cash grants alone cannot drive national development, President Ali said they remain critical in easing household pressures and improving the quality of life. He explained that many of the cash transfer initiatives in Budget 2026 are continuing programmes that have received increased allocations, allowing families to save more and better meet their needs.
Once the budget is approved, the “Because We Care” cash grant will increase to $60,000 per child, benefiting approximately 206,000 children. The head of state noted that this represents more than $12 billion in direct transfers. When combined with the $100,000 cash grant for every adult citizen, he noted that total direct disbursements amount to $72.4 billion. Added to this is the annual $20,000 transportation grant for students, which will cost an additional $4.1 billion.
“That already brings you to about $77 billion with just three measures,” the President said, while also reminding that every Guyanese-born child is entitled to a $100,000 grant.
He further outlined that old age pensioners will now receive $46,000 per month, at an annual cost of $52 billion, along with a $20,000 transportation grant. Public assistance beneficiaries will also receive $25,000 per person. “So, cumulatively, you are talking about close to $150 billion in cash transfers in a country of less than one million people,” President Ali stated.
Meanwhile, beyond cash grants, the President said disposable income is also rising through tax relief measures introduced in Budget 2026. He explained that increasing the income tax threshold from $130,000 to $140,000 will remove around 5,000 persons from the tax register.
“That is billions of dollars going straight into people’s pockets,” he said, adding that individuals earning $140,000 per month will now take home their full salary without paying income tax.
The removal of personal property tax was also cited as another way citizens are keeping more of their earnings.
To this end, President Ali noted that changes to taxes on vehicle imports are intended to reduce consumer costs.
Under Budget 2026, VAT will be removed on new vehicles with an engine capacity of less than 1,500 cc that are less than 4 years old, as well as on hybrid vehicles with an engine capacity of less than 2,000 cc. A flat tax of $2 million will apply to double-cab pickups under 2,000 cc, while those between 2,000 cc and 2,500 cc will attract a $3 million flat tax, regardless of age.
All import duties and taxes on all-terrain vehicles will be removed, along with taxes and duties on outboard engines up to 150 horsepower, a move aimed at lowering transportation costs in hinterland and riverain communities.
President Ali said there are also significant savings for families through non-cash interventions, particularly in education.
He pointed to the government’s payment for eight CXC subjects, the national school feeding programme, free education at the University of Guyana, the GOAL scholarship programme and the hinterland scholarship initiative. “These are tens of thousands of children and hundreds of billions of dollars that families would have otherwise paid,” he said.
Housing support was also highlighted, with the low-income mortgage ceiling increasing from $20 million to $30 million this year, making home ownership more accessible. In addition, $7.5 billion has been allocated for direct homeowner assistance with upgrades.
Ali further noted that citizens continue to save due to the government’s decision to maintain pre-pandemic freight charges for the calculation of import taxes, a measure first introduced in 2021 and extended again under Budget 2026. He also referenced the continued zero per cent excise tax on petroleum products, which the government says costs an estimated $100 billion in annual revenue.
According to the President, these measures are reflected in everyday lifestyle changes among citizens.
“People will complain that it’s expensive to fuel a car now, but a year ago they did not even own a car,” he said, adding that increased disposable income is also driving growth in restaurants, fast food and fine dining.
“That is not accidental. It is people having the chance to experience things they could not afford before,” President Ali added.
