Local authorities have noted that there will be significant changes to Guyana’s fiscal landscape with the coming of oil and gas.
Given this fact, moves are being made to upgrade Guyana’s fiscal statistics to reflect the impact of future oil revenue and to incorporate it in future budget projections.
This is according to the International Monetary Fund (IMF) which produced a report on its 2017 review of Guyana’s economy.
The report noted that fiscal statistics are disseminated through several Ministry of Finance (MOF) publications, including the Mid-Year Report on the annual budget, the Budget Speech and other budget-related documents.
IMF officials said that technical assistance delivered by the Caribbean Regional Technical Assistance Center (CARTAC) in 2016 focused on strengthening custom tariff classification and valuation, debt management, a review of VAT policy and administration framework and developing a medium-term macro-fiscal framework.
The IMF report also noted the plans of local authorities to anchor future oil wealth management in a comprehensive legal framework. They sought the Fund’s advice on the recently drafted Natural Resource Fund legislation.
Additionally, the Government informed the Fund that they are working on other key elements of the fiscal regime, including drafting the Petroleum Law and establishing a Petroleum Commission. They intend to use future oil revenue to help meet key development objectives based on a transparent and rules-based framework.
Furthermore, IMF staff encouraged the authorities here to undertake further steps to ensure financial sector resilience and deepen financial development. These involve enhancing the collection of bank and non-bank data and pursuing systemic risk monitoring, including of banks’ ownership linkages and related-party lending; implementing the new pension and insurance laws swiftly and thus aligning regulation and supervision with international standards; and designing a strategy for integrated development of the National Payment System to support the payment needs of the economy and financial deepening.
IMF Officials said that the further strengthening of the supervisory and regulatory regime can help international banks exploit economies of scale and dampen the impact of losing Correspondent Banking Relations.
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