The Government of Guyana has withdrawn US$850 million from its Natural Resource Fund (NRF) so far for 2024 to support its development agenda for the South American country. This is equivalent to approximately GY$177 billion.
The NRF holds Guyana’s revenues from oil sales and royalties.
The Ministry of Finance announced the third and most recent withdrawal from the Fund on Wednesday evening, about US$300 million (approx. GY$62 billion).
Guyana’s National Assembly had approved a total withdrawal of US$1.586 billion to support the 2024 budget. Before the end of the year, the government is expected to withdraw the remainder of the approved amount – US$736 million (approx. GY153 billion).
The government amended the law earlier this year to allow for higher withdrawals from the NRF to fund capital projects. These include investments in new schools, hospitals, roads, bridges, and the Gas-to-Energy project. Revenues from oil will contribute 29% to the all-time high 2024 budget of US$5.496 billion.
The government has faced some criticism about the level of spending. Vice President Bharrat Jagdeo said that there will be a “steep fall-out” in annual budgets once the government expends enough funds on immediate large-scale development needs.
Replenishment of the fund continues this year, with more than US$2.4 billion expected in oil sales and royalties.
