Govt announces US$3.1 billion in oil revenue but Guyanese are not better off; at least half live in poverty

Senior Minister of Finance and the Public Service, Dr. Ashni Singh, on Monday presented Notification of Receipts to the National Assembly of petroleum revenues paid into the Natural Resource Fund (NRF) for the period July 2024 to September 2024. The notification was published last month in the Official Gazette showing that at the end of October 2024, the balance in the NRF stood at US$3.1 billion.

As Guyana boasts of this tremendous wealth, the masses are still languishing in poverty. According to a 2022 World Bank Report, approximately 48 percent of the population live on less than US$5.50 (GY$1200.00) per day. Analysts said the figures are higher given the high cost of living, runaway inflation and taxes (VAT) on items of necessity.

Wages and salaries for the majority of workers, both in the private and public sectors, have not kept pace with the high cost of living. Last December, Government paid public sector workers and pensioners a mere 6.5 percent increase on salary and pension retroactive from January 2023. Government ministers, including the president, have also received the increase, though their income are within the bracket of what the society refers to as “supersalaries.”

Guyana is the world’s fastest growing economy and the richest per capita.  This year’s GY$1.146 Trillion National Budget is the largest than all budgets combined in post independent Guyana. In spite the sum, the governing People’s Progressive Party/Civic (PPP/) would return to the National Assembly for Supplemental Spendings. On August 9, 2024 the National Assembly approved more than GY$44 Billion in Supplemental Spending. On Monday, November 25, Minister Singh returned to the National Assembly for Supplemental Funding totalling $84.5 billion.  This sum is likely to pass.

Last month, Government announced plan to pay each Guyanese, 18 years and older, a one-off cash grant of GY$100,000 (US$500) which comes with strict conditionalities. Government was initially paying a one-off grant of GY$200,000 per household. However, loud clamouring and rejection from the Opposition and masses forced an about turn by the President and the announcement of GY$100,000 per adult.

Revenue this year revenue from oil and gas has exceeded earlier projected, and now pegged to be more than US$2 Billion. While Guyana is awash with oil and gas revenue, given the population size, many are yet to feel direct benefit.  A visit to social media pages sees Guyanese venting frustration that their quality of life has not improved commensurately with the country’s new found wealth. Goods and services remain expensive and beyond the reach of ordinary citizens

Infrastructures, when not shoddily done are falling apart or unreliable. Recently, the country saw the President hauling government ministers, public servants and contractors before him at 5:00 a.m, in apparent show of his authority to address the poorly managed infrastructure system he presides over.

Guyanese living in Guyana are still experiencing long periods of power outages (blackout); poor or non-existent potable water supply, have no public transportation system, poor social safety net for the vulnerable, high youth unemployment.  It is customary to see government boasts of giving out black tanks to communities, resulting from its failure to provide potable water to citizens which is expected in a country as wealthy as Guyana. Last week Government handed out several 200-gallon black tanks to residents in Region One

In Guyana where prices for basic food items have risen, in some cases as much as 300 percent, the cash grant is not substantial. Insight to cost of living and how ordinary Guyanese struggle to make ends meet could be gleaned from Stabroek News’ Weekly “How the Cost of Living is affecting people.” In its most recent series, Part 104, residents of Port Mourant, Berbice, Region Six shared their stories.

A 38-year-old barber said:

 “The cost of living is tight for me and family because the cost for everything gone sky-high. I’m a family of six, inclusive of my mother, brother, two niece, son and aunty. My mother sells at the market, my brother works and I cut hair for a living. The three of us try to budget ourselves to buy grocery items and pay the utility bills. My brother brings in a monthly salary, my mother and I bring in a weekly wage also. The cost for rice, flour and so gone up. For example, a couple months back, a 45kg Karibee rice cost $6,000/$7000; now the rice cost $9,000. Also, a couple months back, a pint of split peas cost $160 at the shops/market; now the peas about $300 a pint.”

The barber, like many others, have been calling on the government to do something about the “high cost of living because the cost for food items getting really tough now.” These entreaties continue to fall on the proverbial “deaf ears” as government ignores the voices of the poor, vulnerable and marginalised in society.