In the wake of its record $1.146 trillion budget, the Irfaan Ali administration has returned to the National Assembly to seek over $40 billion in supplementary funding. The additional financing aims to support the ailing Guyana Sugar Corporation (GUYSUCO), boost electricity supply, and enhance infrastructure, particularly in the hinterland.
On Wednesday, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh, presented Financial Papers Numbers 1 and 2 of 2024 to the National Assembly. According to a press release from his ministry, Financial Paper Number 1 seeks approval for Supplementary Estimates (Current) related to advances made from the Contingency Fund totaling $8.6 billion for the period from April 1, 2024, to July 30, 2024. Financial Paper Number 2 requests Supplementary Estimates (Current and Capital) totaling $32.2 billion for the period ending December 31, 2024.
The electricity sector is one of the primary beneficiaries, with a total of $16 billion being sought for the Guyana Power and Light (GPL). This includes $4 billion under Financial Paper 1 and an additional $12 billion in Financial Paper 2. The government aims to absorb the impact of rising fuel prices on electricity costs, ensuring that it does not lead to higher electricity prices for Guyanese citizens. Additionally, $1.1 billion is requested to support electricity companies in Linden, Lethem, Mabaruma, and Matthews Ridge.
Since March 2022, the government has implemented measures to mitigate the rising cost of fuel, including the removal of the Excise Tax on fuel, resulting in over $80 billion in annual savings for citizens. In May, 36 megawatts of power were added to the national grid through an agreement with the Turkish company Karpowership to enhance the reliability of GPL’s power supply.
In the agriculture sector, the government is seeking $9.5 billion for GUYSUCO to revitalise the sugar industry, aligning with its commitment to re-energize local communities affected by the closure of several sugar estates during the previous administration’s tenure from 2015 to 2020. The sugar industry has traditionally been a major sector of Guyana’s economy, providing livelihoods for many citizens.
Additionally, Financial Paper Number 2 includes a request for $2.3 billion to settle outstanding payments to suppliers of goods and services to various government agencies. It also covers $1.6 billion for sea and river defence works, $297.4 million to support the Transport and Harbours Department’s operations, $159.2 million for the completion of the Bartica Stelling, and $680.5 million for critical upgrades to ferry vessels.
To improve connectivity and infrastructure, the government is seeking $904 million for the construction and rehabilitation of hinterland roads and $600 million for water supply infrastructure in remote communities.
