Gov’t seeking over $40B in supplementary funding for key sectors

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

The government has requested over $40 billion in supplementary funding for critical sectors, including energy.

Financial Papers Numbers 1 and 2 of 2024 were presented by the Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh, during the 84th sitting of the twelfth Parliament.

Financial Paper Number 1, for which the Minister is seeking approval, provides Supplementary Estimates (Current) for advances made from the Contingency Fund totalling $8.6 billion for the period April 01 to August 30, 2024.

On the other hand, Financial Paper Number 2 provides Supplementary Estimates (Current and Capital) totalling $32.2 billion for the period ending December 31, 2024.

Among the major sectors is electricity, where a total of $16 billion is being sought for Guyana Power and Light (GPL), of which $4 billion is under Financial Paper 1 and a $12 billion Supplementary request in Financial Paper 2. 

Earlier, President Dr. Irfaan Ali had announced that the 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, the government is seeking 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, which has resulted in over $80 billion in savings to citizens annually.

Further, to improve reliability in the supply of power provided by GPL, 36 megawatts of power were added to the national grid in May this year through an agreement with the Turkish Company Karpowership.

Another sector in which the government is seeking approval for a supplementary sum is the agriculture sector, including $9.5 billion for the Guyana Sugar Corporation (GuySuCo).

Additionally, in Financial Paper Number 2, the government is seeking a supplementary sum of $2.3 billion to settle outstanding payments owed to numerous suppliers of goods and services to various government agencies over the years.   

Financial Paper 2 also covers 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, the government is also seeking $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.