The government should use a portion of oil revenues to fund an Earned Income Tax Credit (EITC) program to help lift families out of poverty and put them on a path to prosperity. It also incentivizes work as opposed to discouraging it resulting in greater labour market activities and improvement in social and economic well-being. The EITC is one of the most successful anti-poverty reduction policies and a better option than direct cash transfers. In addition to lifting poor and low-income families out of poverty, the EITC has been successful in growing the tax base and reign in informal activities in the formal economy.
Budget decisions should reflect our collective values, priorities, and needs. Thus, putting together a budget should be based on evidence and facts. The Budget & Policy Institute works to make budget decisions — and the budget process itself — more accessible and easier to understand, so as to encourage citizens’ participation in the debate and foster policies that work for all Guyanese, especially low- and middle-income individuals and families.