Relief for parents: Guyana’s oil wealth funding family-centered benefits

The People’s Progressive Party and Civic (PPP/C) government has rolled out a series of measures aimed at helping families with children. With the new income from Guyana’s oil boom, the government is focusing on using part of that wealth to directly support these families, improving the quality of their lives.

Income Tax Deduction: Starting in 2025, either a mother or father can claim an extra $10,000 tax deduction each month for every child. This means they will pay less in income tax, which leaves them with more money to spend on other things. Over a year, this adds up to a $120,000 relief per child for about 205,000 families in Guyana.

Because We Care Cash Grant & Uniform Voucher Allowance: Every school-aged child in these families can benefit from a $40,000 cash grant, plus an additional $5,000 for school uniforms each year. This money helps parents get their children ready for school, covering things like uniforms and textbooks. Altogether, with the income tax deduction, families save $165,000 each year per school-aged child. If a family has two children, this amount goes up to $330,000; for three children, it is $495,000.

Free Education: Starting in January 2025, the government will abolish tuition fees at the University of Guyana and at state-run technical and vocational institutions. Typical university programmes $127,000 in tuition, with others being even more costly. By lifting this burden, the government aims to make higher education more accessible, reflecting its commitment to investing in Guyana’s future, through its citizens.

National School Feeding Program: For around 102,000 students, the government provides meals at school, including breakfast, juices, biscuits, and hot meals. While this does not cover all students, it is a big help for many families in need, easing the food expenses they would otherwise have to cover.

Working Parents Child Care Subsidy: This program gives working parents a $50,000 subsidy per child, covering child care expenses for three months. About 700 children are expected to benefit from this in 2024, helping parents balance work and family.

Eye Testing and Spectacles Program: Anyone under 18 (and also those 65 and older) can get their eyes tested with a voucher valued at $2,000. If they need glasses, there is another voucher worth $15,000 to cover the cost of the spectacles.

All of these measures point to the government’s focus on supporting working families who are trying to provide for their children. While the government has made it clear that it is focused on using oil revenue for capital projects like transport infrastructure and energy expansion, it has chosen to prioritize families when it comes to recurrent expenses, like the ones listed above.

This shows the government’s commitment to using the country’s newfound oil wealth to ensure that families can better handle the cost of living in Guyana. The government continues to pursue new ways of making people’s lives better.