Dear Editor, Last week, Vice President Bharrat Jagdeo highlighted encouraging economic data regarding the personal disposable income of Guyanese. He noted that, in the past three months, approximately 9,999 new vehicle registrations were recorded, particularly for private vehicles. This statistic indicates the rising personal disposable income and reflects the financial well-being of Guyanese households. The increase in vehicle purchases suggests that personal disposable income is indeed on the rise in Guyana. In economics, personal disposable income refers to the income that individuals or households can access after taxes are deducted. According to Statista, the forecast for household disposable income per capita in Guyana in 2025 is US$12,600. This data reflects the effectiveness of the Government of Guyana’s policies aimed at increasing disposable income and overall quality of life for Guyanese citizens. Recently implemented measures include adjustments to income tax rates and thresholds that particularly benefit lower- and middle-income individuals, thereby bringing more income to Guyanese households. For instance, the personal income tax rate on the first income band has been reduced from 28% to 25%, effective in 2025. These policies introduced by the Government are designed to provide financial relief and foster a more equitable tax system for Guyanese, and it is evident that they are working. The International Monetary Fund (IMF) has praised Guyana for its inclusive growth policies, noting that social transfer programmes have effectively increased disposable income and lowered poverty rates. The IMF commended the government’s initiatives in improving overall income levels for all Guyanese. In 2025, the government distributed additional cash grant programmes designed to boost Guyanese household income as well as disposable income, including a national cash grant of $100,000 for every Guyanese aged 18 and older, a newborn cash grant of $100,000, and a universal health voucher of $10,000. These initiatives provide immediate financial support to increase disposable income across the country. Another crucial factor contributing to increased personal disposable income is the projected growth of Gross Domestic Product (GDP). The IMF estimates that Guyana’s economy will grow by more than 10% in 2025. A growing economy typically results in higher wages and job creation, which enhance overall disposable income. Specifically, Guyana’s real GDP and real non-oil GDP are expected to grow by approximately 10.25% and 13%, respectively, in 2025. Other factors that will significantly influence personal disposable income include rising wages and employment rates, social transfer programmes, and government subsidies in areas such as housing, healthcare, and education. These can help free up more disposable income for other expenses, including purchasing automobiles. Over the past five years, Guyana’s public sector has seen strong salary growth—ranging from 6.5% to 10% annually—culminating in a cumulative 46% increase in nominal wages, alongside broad enhancements to allowances, bonuses, and the pay scale structure. Simultaneously, the 36% rise in the minimum wage in 2022 raised income levels in the private sector. These initiatives have significantly increased household disposable income, as reflected by rising vehicle registrations and heightened consumer spending. The substantial wage increases across sectors have emerged as a key driver of improved personal disposable income, fueling greater economic participation and consumer demand. In addition to wage increases and tax reforms, government energy subsidies have played a pivotal role in enhancing disposable income. Over the past five years, the Government of Guyana has allocated billions of Guyana dollars to stabilize electricity prices through direct subsidies to the Guyana Power and Light (GPL), introduced a G$30,000 annual electricity credit for pensioners, and maintained statutory fuel price controls. These subsidies have significantly reduced utility costs for households and shielded consumers from global energy price shocks. As a result, Guyanese families have been able to redirect more of their income toward savings, investment, or consumption—thereby increasing their effective disposable income. Guyanese households are benefiting from the focused economic policies implemented by President Ali’s government, which are aimed at improving personal disposable income and overall financial well-being, this translates to overall better quality of life for Guyanese across the country. It also shows that given the economic success of Guyana, these are being shared with the Guyanese people. Dr. Tilokie Arnold Depoo