The third budget to be backed by Guyana’s oil revenues is expected to be read in the National Assembly later this month.
This was revealed by the Vice President Bharrat Jagdeo on Jan. 4.
Preparations for the budget started back in October, with consultations with the country’s trade unions led by Prime Minister, Brigadier Mark Phillips, and Senior Finance Minister, Dr. Ashni Singh, at the Arthur Chung Conference Centre. The budget meetings included unions affiliated with the Federation of Independent Trade Unions (FITUG), the Guyana Trades Union Congress (GTUC), and the Guyana Public Service Union (GPSU). The government team for the consultations comprised several key ministers and officials from state departments.
The 2022 budget saw oil revenues constitute up to 23% of the initial total, with the Natural Resource Fund contributing approximately US$607.6 million. The 2023 budget, which was initially pegged at GY$781.9 billion (US$3.75 billion), relied on oil revenues for 26.7% of its funds.
The Natural Resource Fund, established to manage Guyana’s oil wealth, is projected to have US$1.16 billion available for withdrawal and expenditure in 2024, based on a withdrawal formula in the law. This method ensures that only inflows from the preceding year are spent, protecting savings from previous years. In 2024, after the anticipated withdrawals, the Fund is expected to retain accumulated savings, from 2020-2023, of approximately US$820 million.
