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Govt withdraws US$300 Million from Natural Resources Fund. Are Guyanese better off today?

- in the world's fastest growing economy half the

Admin by Admin
October 4, 2024
in News
Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh

Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh

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The Ministry of Finance in recent statement announced another withdrawal from the Natural Resource Fund (NRF) bringing it to the fourth withdrawal for the year. This Fund that holds the revenue Guyana earns from oil and gas. Guyana is expected to haul in at least US$2.8 Billion for 2024. The withdrawal totals, on October 1, 2024, totals US$300 million (equivalent to G$62.394 billion). The sum was transferred to the Consolidated Fund which is the Government’s account that should be accounting for all revenues, expenses and receipts.

Pursuant to the Natural Resource Fund (NRF) Act 2021, as amended by the Fiscal Enactments (Amendment) Act 2024, Parliamentary approval, arising from People’s Progressive Party (PPP), has been granted for US$1,586,150,331 (equivalent to G$329,885,563,088) to be withdrawn from the NRF in 2024.

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The US$300 Million transfer brings the accumulated withdrawals to date in 2024 to US$1.150 billion (equivalent to G$239.176 billion) within the total of US$1.586 billion (equivalent to G$329.9 billion) approved to be withdrawn in 2024.

As government continues withdrawal from the NRF, the benefit of the oil and gas money is not felt by the masses in any direct way as cost of living remains high and wages and salary depressed. In 2024 where Guyana is ranked the fastest growing economy, and richest per capita half the population lives in poverty and on less than US$5.50 (GY$1200) per day.

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