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Govt.’s depletion of oil funds spells danger for the future – MP Holder
Kaieteur News- The government of Guyana’s excessive spending of oil money could have long-term economic consequences, Opposition Member of Parliament and Shadow Oil and Gas Minister Shurwayne Holder has said.
In his critique of the government’s handling of the country’s oil revenues, Holder expressed grave concern about what he considered to be the depletion of the Natural Resource Fund (NRF).
Opposition Member of Parliament and Shadow Oil and Gas Minister, Shurwayne Holder (depletion of oil funds)
The government intends to withdraw about US$2.4 billion (G$512 billion) from the NRF to support its US$6.6 billion (G$1.3 trillion) national budget. During the 2025 budget presentation, Guyana’s Minister of Finance Minister Dr. Ashni Singh disclosed that in 2025, although Guyana’s daily production is expected to climb, the country will see a decrease in earnings from the sector, as the oil price is likely to decline. He explained that global oil supply is expected to surpass demand this year, leading to a 10.9% drop in prices to around US$71.9 per barrel.
On Monday, MP Holder during the budget debates challenged the government’s claim that it is maintaining a balance between short-term and long-term financial goals.
“The Minister claimed in his budget speech that he intends to strike an appropriate balance between short-term imperatives and long-term considerations. How are they doing this whilst spending 95% of the NRF funds? This approach suggests that all that matters are short-term imperatives. At the current rate of depletion, it will be years before significant funds will be available to invest so that we have funds to stabilize the economy and to ensure prosperity for future generations,” Holder stated.
Further, he pointed to the government’s projections regarding oil prices and economic growth, arguing that the country is already overly dependent on oil revenue.
“By his [Finance Minister] own admission, global oil supply will surpass demand in 2025 leading to a 10.95 drop in oil prices to just around $71 per barrel. This drop has consequences for the GDP growth rate. 2025 growth is expected to slow to 10.6% from 43.6% in 2024,” Holder stated.
Moreover, the Opposition MP called for stricter measures to ensure transparency and accountability in the management of oil funds. He suggested that the penalty for non-disclosure of oil revenues received should extend to failing to disclose what the oil money is being spent on.
Holder stated, “I suggest to this House today that we extend this penalty to any finance minister who fails to disclose how our oil money is spent and prohibit the National Assembly from further approving any oil money, until that which was spent is properly accounted for. The lawlessness and disrespect shown to the people of Guyana by this PPP government must end now.”
This publication recently reported that Opposition Leader, Aubrey Norton voiced his concerns about the government’s decision to withdraw over 90% of oil revenues from the NRF to finance the 2025 Budget.
“To spend 95% of the income in the NRF is criminal, dangerous, and may have already placed us at risk due to the overdependence on oil and the lack of significant improvement in the non-oil sectors,” Norton said during the debate on Thursday.
(Govt.’s depletion of oil funds spells danger for the future – MP Holder)
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