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– Funding will be used to protect consumers from the impact of rising fuel prices, support the sugar industry, and continue to improve infrastructure
As Guyana’s economy continues to expand and become the fastest growing economy in the world, the Government continues to increase its support for key sectors of the country’s economy.
In view of this, Dr. Ashni Singh, Senior Minister in charge of Finance and Public Service in the President’s Office, presented the Finance Paper No. 1 and No. 2 for 2024, totaling over $40 billion, to the National Assembly during the 84th session of the 12th Parliament on Wednesday.
Finance Document No. 1, for which the Minister is seeking approval, covers a total of $8.6 billion in supplementary budgets (current) to be drawn from the Contingency Fund for the period from April 1, 2024 to July 30, 2024, while Finance Document No. 2 covers a total of $32.2 billion in supplementary budgets (current and capital) for the period ending December 31, 2024.
The main industry involved is electricity. The Guyana Power and Lighting Company (GPL) requires a total loan of US$16 billion, of which US$4 billion belongs to Financial Document One and the supplementary application of US$12 billion belongs to Financial Document Two.
It will be recalled that President Irfaan Ali had announced that Government would absorb the impact of fuel price increases on the cost of services provided by power companies to ensure that it does not result in an increase in electricity prices in Guyana.
In addition, the government is seeking additional approval of $1.1 billion to support power companies in Linden, Latham, Mabaruma and Matthews Ridge. Importantly, the government has already implemented several measures to mitigate the rising cost of fuel, including the removal of excise duty on this commodity from March 2022, saving citizens more than $80 billion annually.
In addition, in order to improve the reliability of GPL’s electricity supply, in May this year, GPL added 36 megawatts of electricity to the national grid through an agreement with Turkey’s Karpowership company.
Another area where the government is seeking approval for supplementary funding is the agriculture sector, which includes $9.5 billion for the Guyana Sugar Corporation (GuySuCo) as part of the government’s continued efforts to revitalize the industry, in line with its commitment to the country and re-energize local communities that were devastated by the unconscionable actions of the country’s former ruling party, the Partnership for National Unity + Alliance for Change (APNU+AFC).
The previous government closed several sugar estates between 2015 and 2020. Sugar production has traditionally been one of the main sectors of the country’s economy, and the livelihoods of many citizens depend on it.
In addition, in the second fiscal document, the government is seeking to supplement $2.3 billion to settle outstanding amounts owed to numerous suppliers of goods and services to various government agencies over the years.
The second fiscal document also allocates $1.6 billion for marine and river defence works at the Public Works Department, $297.4 million for operations at the transport and ports departments, $159.2 million for the completion of the Bartica Stelling, and $680.5 million to facilitate critical upgrades to ferries.
Additionally, as the Government continues to improve connectivity across the country, particularly in the area of infrastructure, an additional $904 million is being sought to build and repair hinterland roads, and $600 million to complete infrastructure to deliver critical water supplies to these remote communities.
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