Government ramps up support for key sectors
–as Senior Minister presents Supplementary Financial Papers totalling over $40B to the National Assembly
Government has been ramping up support for key sectors of Guyana’s economy amid its continued expansion and current status of being the fastest growing economy in the world. In this light, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service Dr. Ashni Singh today presented Financial Papers Numbers 1 and 2 of 2024 to the National Assembly totalling over $40 Billion during the 84th Sitting of the Twelfth Parliament. Financial Paper Number 1 for which the Minister is seeking approval caters for Supplementary Estimates (Current) in relation to advances made from the Contingency Fund totalling $8.6 Billion for the period 2024-04-01 to 2024-07-30 while Financial Paper Number 2 caters for Supplementary Estimates (Current and Capital) totalling $32.2 Billion for the period ending 2024-12-31.
Among the major sectors is electricity where a total of $16 Billion is being sought for the Guyana Power and Light (GPL) of which $4 Billion is under Financial Paper 1 and a $12 Billion Supplementary request in Financial Paper 2. It would be recalled that President Irfaan Ali had announced that Government would be absorbing the impact of rising fuel prices on the cost of services provided by electricity companies to ensure that it does not translate to higher electricity prices for Guyanese. Additionally, Government is seeking a supplementary approval of $1.1 Billion for additional resources to support electricity companies in Linden, Lethem, Mabaruma and Matthew’s Ridge. Importantly, the Government has implemented several measures to mitigate the rising cost of fuel including the removal of the Excise Tax on this commodity since March 2022 resulting in over $80 Billion in savings to citizens annually. Further, to bring greater reliability in terms of the supply of power being provided by GPL, in May this year, 36-megawatts of power was added to the national grid through an agreement with the Turkish Company Karpowership.
Another sector under which Government is seeking approval for a supplementary sum is the agriculture sector including a sum of $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 to re-energize local communities devastated by the unconscionable actions of the country’s former Governing party- A Partnership for National Unity/Alliance for Change (APNU/AFC) Coalition. The former administration under its tenure closed several sugar estates during the period 2015-2020. This sector had traditionally been one of the major sectors of the country’s economy upon which many citizens depend for their livelihood.
Additionally, in Financial Paper Number 2, Government is seeking a supplementary sum of $2.3 Billion to settle outstanding payments owed to numerous suppliers of goods and services to a number of Government agencies over the years.
Financial Paper 2 also caters for a sum of $1.6 Billion under the Ministry of Public Works for Sea and River Defence works, $297.4 Million to support the operations of the Transport and Harbours Department, $159.2 Million for the completion of the Bartica Stelling and $680.5 Million to facilitate critical upgrades to Ferry Vessels.
Further, as Government continues to improve connectivity across the country especially in the infrastructure sector, Government is seeking an additional $904 Million for the construction and rehabilitation of hinterland roads and $600 Million for the completion of infrastructure for the critical supply of water to these far-flung communities.