Guyana Budget 2025
https://finance.gov.gy/wp-content/uploads/2025/01/Budget_at_a_Glance_2025.pdf
BUDGET 2025 AMOUNTS TO $1.382 TRILLION 20.6 PERCENT LARGER THAN BUDGET 2024 THE LARGEST BUDGET EVER FULLY FINANCED WITH NO NEW TAXES
Guyana’s constitutional and legal architecture establishes that all revenues
received be paid into one Consolidated Fund
January 28, 2025
Hon. Dr. Ashni K. Singh, M.P., Senior Minister in the Office of thePresident with Responsibility for Finance and the Public Service
I have not previously commented on Terrence Campbell’s recent forays in the media on the matter of the Natural Resource Fund (NRF), being of the view that Vice-President Bharrat Jagdeo has already and comprehensively addressed the issues Campbell has raised. However, Campbell’s letter in the January 25th issue of the Stabroek News (SN) has been brought to my notice, along with an article in the Village Voice News of the same day.
The references he makes to me in the said letter suggests that, after the thorough schooling he received from the Vice-President, Campbell now needs a face-saving or soft-landing of some sorts. So, it appears he has now turned his gaze in my direction hoping for some form of engagement to salve his ego or, perhaps even better yet, no engagement at all. Needless to say, there is little that I can add to what the Vice-President has already said.
Nevertheless, I will not deny Campbell the courtesy of this, my first and likely final, response to some of the specific issues he has raised.
First, he makes the point that specific projects are identified as being financed by our climate revenue but that the same is not done in the case of our oil revenue.
I will restate what the Vice-President has already said. As a general rule, balkanisation (or hypothecation or earmarking) of government revenue to finance specific government initiatives or projects is not considered recommended practice for a variety of reasons documented in a substantial literature that is readily available. The recommended and vastly superior alternative is payment of all government revenues from all sources into a single consolidated fund from which all expenditure is appropriated.
The entire constitutional and legal architecture for fiscal management in Guyana is clear on this question. The Constitution establishes the principle that all revenues or other moneys raised or received by Guyana be paid into one Consolidated Fund.
The Constitution also details the arrangements under which withdrawals may be made from the Consolidated Fund, including the requirement of an Appropriation Act passed by Parliament. Key elements of Guyana’s fiscal management architecture have remained faithful to this constitutional principle, including the Fiscal Management and Accountability Act, Cap. 73:02, and the NRF Act 2021.
This brings us to the question of why specific projects are identified as being financed by our climate revenues. The answer to this question is, in fact, quite simple. In a world where climate financing arrangements are still very nascent, this identification is necessary in order for Guyana to be able to earn these revenues.
In other words, Guyana needs to demonstrate that the revenues are being used to finance climate adaptation and mitigation expenditure. Hence, a practical and transparent solution is developed where the funds are deposited into the Consolidated Fund and appropriated back out to meet identified climate adaptation and mitigation initiatives, all fully incorporated into the national budget and considered in the parliamentary budgetary process.
The ultimate and preferred solution remains for all government revenues irrespective of source to be deposited into the Consolidated Fund and for all expenditure to be met by appropriations approved as part of the budgetary process. This is what is recommended by good fiscal management practice and this is what our constitutional and legal architecture contemplates.
Second, Campbell criticises the Government’s level of withdrawal from the NRF, going so far as to describe it as ridiculous and excessive. Campbell would be well advised to remind himself that the level of withdrawal from the Fund is a matter of law.
The NRF Act stipulates that the amount that may be withdrawn in any fiscal year is approved annually by the National Assembly within a ceiling that is defined by a transparent formula contained in the Act. Irrespective of Campbell’s personal views on what the level of withdrawal should be, and ignoring for the moment the fact that he has volunteered absolutely no rigorous basis whatsoever for these views, the level of withdrawal is determined by law and is approved annually by a democratically elected Parliament.
Finally, Campbell laments the absence of detailed reporting on how NRF funds are allocated. For the avoidance of doubt and an abundance of clarity, I will restate what has already been said elsewhere and should by now be patently clear. Once the National Assembly approves the amount to be withdrawn from the NRF in any fiscal year, that amount is transferred to the Consolidated Fund (typically in tranches over the course of the year), which constitutes the fungible pool of fiscal resources available to finance the various policies, programmes, and projects reflected in the national budget.
The national budget is itself considered in detail by the National Assembly through the appropriations process in the Committee of Supply.
When approved, the national budget is implemented. After the end of the fiscal year, financial reports are produced, audited, and submitted to the National Assembly to be examined in detail by the Public Accounts Committee.
In summary, therefore, there is both robust ex ante and ex post scrutiny of all sums appropriated from the Consolidated Fund. Beyond this, there are of course multiple other layers of scrutiny of the NRF, including the requirement to publish all receipts in the Official Gazette and report them to the National Assembly.
Exports soar by 285 per cent in three years
January 24, 2025
Defending the 2025 budget in the National Assembly, Minister of Foreign Affairs and International Cooperation, Hugh Todd revealed Guyana’s exports rose by a massive 285 per cent, from US$2.8 billion to US$10.8 billion between 2020 and 2023.
“This accounts for a 106 per cent improvement in our non-oil exports.”
He emphasised that the government has consistently engaged in negotiations with trading partners to remove market access barriers and expand market presence for local products in regional and international markets.
As a result, trade with major extra-regional partners increased significantly.
“Exports to the United States and Canada expanded by US$6.2 billion and US$385 billion respectively. The growth of our exports to the United Kingdom and the European Union have also been exponential, increasing by US$747 million and US$2.2 billion during that period.”
Exports to non-traditional markets also grew substantially with the United Arab Emirates (UAE), Singapore and India being ranked among Guyana’s top ten export destinations. Since 2020, exports to these countries rose by US$2.1 billion. This increase is a result of government efforts to implement measures directed at the expansion of the economy and enhance both traditional and non-traditional export profiles.
Recognising President Dr Mohamed Irfaan Ali’s visionary leadership in positioning Guyana as a model in economic, social and environmental development, the minister highlighted the vast achievements in foreign policy. The government continues to demonstrate its commitment to protecting its sovereignty and territorial integrity. It has been actively involved in the international arena, which includes its role in the United Nations Security Council (UNSC).
“Guyana’s international engagements are grounded in the provisions of our Constitution, respect for the purposes and principles of the United Nations Charter, and the fundamental adherence to international law.”
Minister Todd also emphasised efforts to promote indigenous rights, address racial discrimination and pursue reparations for historical injustices related to the transatlantic slave trade. Under the stewardship of the PPP/C government, Guyana established itself as a leader in climate and energy security, piloting bold initiatives to foster sustainable development and advance global climate adaptation and mitigation efforts.
“The agriculture and food systems sector in Guyana is being repositioned and transformed into an expanded, diversified, modernised, resilient and competitive sector.
Moreover, Guyana has emerged as a leader in CARICOM, being the lead head with responsibility for agriculture, agricultural diversification and food security within the CARICOM Quasi-Cabinet.”
The government resuscitated the Diaspora Unit and re-established stakeholder engagement to improve services to the diaspora. Since 2020 about 2,035 remigrant applications have been processed.
“This highlights the trust and confidence the diaspora places in the PPP/C government.”
Private sector growth, investment and job creation, transform Guyana’s economy
January 23, 2025
President Dr. Irfaan Ali, in a live broadcast, said that, since taking the helm of government in 2020, the local private sector has grown significantly, resulting in government commitment to creating over 50,000 jobs being surpassed.
Robust policies, strategic investments and a business-friendly environment fostered unparalleled growth across multiple sectors, strengthened investor confidence and created sustainable employment opportunities.
“The private sector is the engine of economic growth, and my government has worked tirelessly to ensure the environment is conducive to its expansion. This is reflected in the 60% increase in private sector credit from June 2020 to June 2024, more than three times the growth seen under the previous administration.”
Private sector investment soared across key industries and sectors.
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- In agriculture, private investment grew by 97%,
- manufacturing increased by 47% and
- construction rose by 93% .
- Mining investment recorded 65% increase,
- while other services grew by 124%.
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“These figures are a testimony to the confidence the private sector has in our economy and policies. Our strategy is not just about growth; it is about inclusive and sustainable development, ensuring benefits reach every citizen.”
Attractiveness as an investment destination reached historic levels. Between 2021 and 2023, Foreign Direct Investment (FDI) reached $16.1 billion, over three times the FDI recorded during the last administration. Guyana has become the sixth-largest FDI recipient in Latin America and the Caribbean, with $7.2 billion in inflows recorded in 2023 alone.
“International investors are looking at Guyana and seeing opportunity. This is the result of deliberate efforts to position our nation as a hub for investment through fiscal incentives, a resource-rich economy, and access to global markets.”
The government’s job creation target of 50,000 jobs has been surpassed, with over 60,000 sustainable jobs created in sectors such as construction, forestry, oil and gas, tourism and mining.
“From the start, we committed to building a strong, people-focused economy that generates employment opportunities for all Guyanese. The results speak for themselves. We are not just creating jobs; we are empowering people by creating opportunities that improve their livelihoods and their families’ futures.
The housing sector generated over 30,000 jobs. The petroleum sector created over 6,500 new positions. Other key contributors include tourism with 8,700 jobs and GUYSUCO, which rehired 2,000 workers. Guyana remains focused on driving economic growth, attracting investment, and creating opportunities to build a prosperous and resilient nation.
Judge leaders by results, not rhetoric
January 1, 2025
Bharrat Jagdeo, General Secretary, People’s Progressive Party
As we step into 2025, a pivotal year for Guyana and our democracy, I extend warm and heartfelt New Year greetings to all Guyanese, both at home and abroad.
This year is a defining moment for our nation. As we prepare for the upcoming elections, I urge every citizen to reflect on the progress we have made together, despite the challenges, and the prosperous future we can look forward to as a people. Over the past four years, the People’s Progressive Party (PPP) has worked tirelessly to fulfil—and even surpass—the commitments made in our 2020-2025 Manifesto.
In 2024, the PPP/C government achieved significant milestones across multiple sectors. Over 3,000 community roads and 200 bridges were constructed, while major highway expansions reduced traffic congestion, and boosted economic zones.
The energy sector advanced through ongoing work on the transformative Gas-to-Energy Project, alongside investments in solar energy for electrification in multiple hinterland communities. Employment surged with the creation of over 60,000 jobs, while increased public sector salaries boosted disposable incomes.
Approximately 38,000 house lots were distributed, and affordable housing programmes improved living standards. Education saw the distribution of 50,000 scholarships and expanded cash grants for students, while healthcare infrastructure grew with ongoing efforts to construct 12 new hospitals and expand telemedicine services.
The agricultural sector benefited from billions of dollars invested to enhance food security and exports, while social welfare measures included increased pensions and bonuses for members of the Disciplined Services.
In response to global increases in the cost of living, our citizens also benefited from several interventions throughout the year, including the $100,000 cash grant.
Successful carbon credit agreements injected billions in direct support to over 240 Amerindian village economies, alongside advancements in the Low-Carbon Development Strategy 2030, highlighting Guyana’s environmental leadership. Tax reforms alleviated financial burdens and initiatives in technology, tourism, and digitised public services further modernised the country.
These achievements reflect our unwavering dedication to the betterment of every Guyanese community, regardless of size or location. Our achievements speak for themselves. From advancements in women’s and youth empowerment to the robust development of infrastructure and the empowerment of every sector of society, we have delivered not only on our promises but also on the trust you placed in us when we were given a mandate to govern.
Yet, as we celebrate these milestones, we must also recognise the responsibility that lies ahead. The upcoming 2025 elections are not just about choosing a government; they are about safeguarding the freedoms, rights, and democratic principles that form the foundation of our nation.
The preservation of democracy demands vigilance and unity. To this end, I wish to emphasise that a united Guyana is the only path forward. I call on every Guyanese to look beyond race, ethnicity and divisive rhetoric when choosing leaders, and judge leadership by its track record of delivering for the people.
The PPP remains proud to be the only multi-ethnic political party in Guyana, representing and uplifting the rich diversity of our nation. At the same time, we cannot ignore the lessons of the past. The transgressions of the PNCR, APNU, and AFC, whether through undermining democracy, mismanaging resources, or harming our people, must not be forgotten or excused.
Accountability is critical to maintaining justice, transparency, and good governance for future generations. As we move into this critical year, let us commit to working together for a stronger, more inclusive, and prosperous Guyana. Your support will be essential as we continue to build a nation that offers opportunity, unity, and hope for all. On behalf of the People’s Progressive Party, I wish you and your families a Happy New Year.
May 2025 bring continued progress, peace, and success to our beloved Guyana.
Oil revenue reaching Guyanese
December 29, 2024
VP Jagdeo highlights country’s transformation
In light of the bright future that Guyanese are facing, Vice President, Dr Bharrat Jagdeo has given an in-depth analysis of how every single cent of the oil revenue is reaching the people. During a press conference at Freedom House, Jagdeo, General Secretary of the governing People’s Progressive Party Civic (PPP/C), clarified some public statements and spoke about Guyana’s five years of oil.
While addressing the ongoing campaigns aimed at distorting government achievements, the Vice President challenged claims made in a Stabroek News editorial, attempting to blame the government for transgressions of the previous administration.
Jagdeo rejected these claims, defending the government’s record and emphasizing that it should not be held accountable for actions taken under the former administration. While some oil-producing nations are grappling with corruption and a lack of investments in their traditional sectors, the Vice President explained that this state of infamy is not Guyana’s case.
Responding to the criticisms of how the oil revenues are being spent, Jagdeo said there is not a “single bit of evidence” that any cent of oil money is missing. The Vice President firmly stated that all funds under the current administration are fully accounted for, with robust safeguards in place to ensure accountability and transparency. He contrasted this with the situation under the previous A Partnership for National Unity + Alliance For Change (APNU+AFC) administration.
Jagdeo highlighted the US$18 million signing bonus received by the APNU+AFC from ExxonMobil as an example. This bonus was not made public until the government faced intense criticism for its lack of transparency. Jagdeo emphasised that such situations could not occur under the current government, as the Natural Resource Fund (NRF) Act prohibits illegal activities and ensures that all transactions are above board.
Underscoring that the NRF Act ensures that receipts of “every cent” are made public, Jagdeo said, “We have a clear provision, where all the money transferred to the budget can be traced and every cent in the budget has to be before it’s spent, has to be appropriated, and under the Auditor General control.”
Guyana has been getting high marks for this since there are oil-producing countries around the world that do not have the draconian provisions. Staying on the topic of how oil revenues are being utilised, the Vice President said that the funds are not being squandered but instead, the money is going towards the citizens.
“You don’t see the money being spent on building a new building for the Office of the President like we’ve had or buying fleets of vehicles for the government even without oil money.”
The Vice President once again emphasised the contrast between the PPP/C and the APNU+AFC administrations in how they handle public funds. Former President David Granger left office with a $35.2 million Lexus motor vehicle, highlighting the disparity in the treatment of former leaders. This was in stark contrast to the approach taken by the APNU+AFC administration when it attempted to provide former President Donald Ramotar with a Toyota Raum, a far less luxurious vehicle.
Jagdeo stressed that the current government is directing funds towards vital sectors such as education, healthcare, and infrastructure, benefiting the wider population rather than individuals.
“You see it [money] going massive in investments in infrastructure, roads for our people, not roads for the politicians, etc. Power plants. That’s where you see the money being spent.”
To ensure economic diversification and reduce reliance solely on the oil sector, the government is making substantial investments in transforming traditional sectors, to strengthen various areas of the economy, ensuring sustainable growth and development across multiple industries, rather than depending entirely on oil revenues.
“I don’t want to list the details, you will hear about this next week when the minister speaks about [the] tissue culture labs opening up new sectors, bringing in better quality animals, giving greater incentives, co-investing in the agricultural sector and other sectors to expand the economic base of the country,” the Vice President noted as he firmly underscored that the government has demonstrated where the money is going.
APNU+AFC’s Choices
The Vice President addressed the ongoing discussions surrounding the Production Sharing Agreement (PSA) that was signed by the former APNU+AFC administration. He emphasized the importance of examining the terms of the agreement and the impact it had on the oil sector.
“They (APNU+AFC) signed the PSA. But we are blamed because we did not renegotiate the PSA. But there is a provision in the PSA which says that the other side must agree to the renegotiation…Exxon has already said they don’t.”
While there are persons trying to lump the government in the same boat with APNU+AFC, there is no acknowledgement of the PPP/C’s steps to steer Guyana in the right direction.
“Many countries that have been producing oil and gas for 60 years, don’t have a local content policy. We have one and 1000 Guyanese companies are already benefiting from over 700 million of business. They didn’t see that as positive. They didn’t see now that you have to go to auction.”
Jagdeo said that there is not even any acknowledgement of the new PSA that the PPP/C put in place with new royalty rates nor the strong environmental permits that they issued with a carbon tax.
Cementing that his administration does not hopscotch on matters of national interest, he said, “We are not doing things for the short or the PR benefits. People have to think through this. It’s not for the show or the PR benefits… It’s practical, to think through it logically, that is one thing that we work on logic. “As I said before, we’re not dealing with the optics. We’re dealing with substance.”
EXCITING PERIOD
In just a few years, Guyana has gone from producing no oil to positioning itself to achieve one million barrels per day (bpd) by the early 2030s, a feat that took decades for oil-producing giants like Brazil and Angola.
“So, if you really want to talk about what has happened in the five years since first oil, it’s been an exciting period for us. We have made significant changes to the regime under which we can monitor and regulate the oil and gas sector, new laws, regulations, etc.
We have kept our commitment to a new PSA and effectively we have renegotiated the five contracts outside of this Stabroek contract because now the new PSA would be applicable to them.
We have passed the local content law. All of these things have been done by this government and we have utilized every cent of oil money in the areas that will benefit our people. This is a success story. It’s not infamy.”
Continuing to respond to detractors of development, he later said: “…We have made great strides and unlike the infamous behaviour in many other parts of the world with oil and gas money, you didn’t find that here in Guyana can trace every cent you can see it going to things that are visible to the people of this country that will change their lives.”
Prosperity for all
January 1, 2025
PRIME MINISTER BRIGADIER (RET’D) MARK PHILLIPS
My fellow Guyanese,
As we are greeted by the promise of 2025, it is important that we take a moment to reflect on the journey we have travelled together as a country. The year 2024 demonstrated the collective spirit of Guyanese through our shared values and our determination to create a better future for our people.
Within our communities, our strength was evident through simple acts of kindness, compassion and hard work that define us. Regardless of the magnitude of your positive works, each of you contributed to the progress we celebrate today. The economic strides we have seen over this past year have also been significant.
The opportunities brought by the growth in our natural resources presented us with both a profound responsibility and endless possibilities. Our responsibility is to ensure that these blessings uplift every citizen and secure a sustainable and inclusive future for our people. Along this line, we continue to make transformative investments in education, healthcare, and infrastructure as part of that commitment. Yet, our greatest asset remains our people—the innovation, the industry, and the integrity you bring to every endeavour.
We envision a future of prosperity for all Guyanese. We are advancing toward a more diversified economy with thriving agriculture, technology, and renewable energy sectors. These steps are laying the groundwork for our ability to stand firm against global uncertainties and ensure that Guyana stands tall as a nation of stability and opportunity.
We are also reminded of our duty to protect the natural beauty that surrounds us—the forests, rivers, and biodiversity that are a source of pride and a legacy for generations to come. As global conversations around climate change intensify, Guyana continues to lead by example, showing that development and environmental stewardship can go hand in hand.
Even as we move forward, we must remember that our sovereignty remains our strength. As we address territorial challenges, we do so with unity and a continued commitment to peace.
Our relationships with neighbours and the global community are built on respect and cooperation, ensuring that Guyana’s voice is heard on the world stage. Of course, in our reflections on our success, we must not forget that none of this would have been possible without our people. We faced challenges and celebrated triumphs together. We held each other up in times of difficulty and shared our collective joy in moments of success. Our strength is in our unity, and as we look ahead, we must continue to embrace this spirit of togetherness.
We are now on the cusp of 2025. May we resolve to be even better, even stronger, and even more united as a people. May we build on the progress we have made, keep sight of the goals we have yet to achieve, and, most importantly, never lose faith in the greatness that lies within each of us and in the potential of this beautiful nation.
On behalf of the government of Guyana, I wish each of you a year filled with health,
happiness, and hope. May we continue to reach new heights together, always guided by our shared love for Guyana and our dreams for a brighter future. Happy New Year! May 2025 bring prosperity, peace, and progress to every Guyanese household.