On January 26, the Government of Guyana will present its 2026 Budget at a time when the country’s oil production has reached record levels across several offshore projects, and citizens watch to see how these oil revenues will improve their lives.
Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, is set to deliver the country’s financial plan. This will be the first budget since the People’s Progressive Party/Civic (PPP/C) was re-elected under President Irfaan Ali on September 1, 2025.
Many Guyanese will be listening closely to learn how the government plans to use oil revenues to improve lives today while saving for the future. This is largely because oil income now plays a major role in funding national development, creating jobs, and supporting the essential services on which citizens rely.
One of the main oil-related issues in Budget 2026 will be the amount of money the government can withdraw from the Natural Resource Fund (NRF). The NRF is Guyana’s oil savings fund, and the law sets clear rules for calculating withdrawals.
For 2026, Guyana can withdraw approximately US$2.37 billion, roughly GY$495 billion, slightly lower than the 2025 withdrawal.
This budget is especially significant, coming on the heels of Guyana achieving near-full initial production targets across its offshore projects. In the fourth quarter of 2025, ExxonMobil Guyana announced that national oil output had reached approximately 900,000 barrels per day, following the ramp-up of the Yellowtail development.
Looking ahead, attention will be on the Longtail project, the eighth proposed Stabroek Block development, currently under regulatory review.
While no approval date has been announced, Budget 2026 could provide guidance on regulatory timelines, clarify how Longtail fits into Guyana’s gas utilization strategy, and outline the path toward achieving a capacity of 1.7 million barrels per day by 2030.
Beyond oil production, close attention will be paid to how oil revenues are used to support the wider economy. In his 2025 mid-year report, Dr. Singh stated that in the first half of 2025, Guyana’s overall economy grew by an estimated 7.5%. Over the same period, the non-oil economy—agriculture, construction, services, and manufacturing—expanded by an estimated 13.8%. He further noted that this is the fifth consecutive year of mid-year growth in the non-oil economy.
Another key issue will be the government’s policy direction for the oil and gas sector, particularly local content. Proposed changes to Guyana’s Local Content Act are still under review. These changes could expand the range of services Guyanese companies must provide, including additional vessel-related and offshore support services.
