Latest update February 3rd, 2025 7:00 AM
Latest News
- Govt. assures Exxon not hiding true oil data
- Sheriff Holdings distances self from convicted fraudster Ed Ahmad over suspicious Ogle land deal
- Trump says Americans could feel ‘pain’ in trade war with Mexico, Canada, China
- Soesdyke man killed after car crashes into truck
- Patterson pillories govt. for reckless spending of oil money
Patterson pillories govt. for reckless spending of oil money
…says there is no plan for volatile oil prices
Kaieteur News- Opposition Member of Parliament David Patterson has accused the government for what he called the reckless spending of oil revenues without any plan to cater for the volatility of prices.
During the just concluded budget debates in the National Assembly, Patterson argued that there is “no clear plan to mitigate the volatility of oil prices or protect our economy from overreliance on this single resource.”
Opposition Member of Parliament, David Patterson
He likened the administration’s handling of the Natural Resource Fund (NRF) to a child let loose in a candy store. He added, “Oil revenues, which should serve as a bedrock for intergenerational prosperity, are instead being squandered on short-term political gains.”
MP Patterson contended that a responsible government would prioritize the establishment of a well-structured Sovereign Wealth Fund with independent oversight and strict withdrawal guidelines.
He continued, “It would invest oil revenues in areas that yield long-term returns education, healthcare, renewable energy, and infrastructure that benefits all Guyanese. Instead, what do we see? Reckless spending with no vision for the future.”
Patterson’s remarks add to concerns raised during the debate by Opposition MPs regarding the government’s use of oil revenues, particularly amid global uncertainties surrounding oil prices and the need for sustainable economic planning.
It was reported that the government intends to withdraw about US$2.4 billion (G$512 billion) from the NRF to support its US$6.6 billion (G$1.3 trillion) national budget.
During the 2025 budget presentation, Guyana’s Minister of Finance Minister Dr. Ashni Singh disclosed that in 2025, although Guyana’s daily production is expected to climb, the country will see a decrease in earnings from the sector, as the oil price is likely to decline. He explained that global oil supply is expected to surpass demand this year, leading to a 10.9% drop in prices to around US$71.9 per barrel.
Opposition MP and Shadow Oil and Gas Minister Shurwayne Holder has said that the government’s excessive spending of oil money could have long-term economic consequences. In his critique of the government’s handling of the country’s oil revenues, Holder expressed grave concern about what he considered to be the depletion of the NRF.
Similarly, Opposition Leader Aubrey Norton voiced his concerns about the government’s decision to withdraw over 90% of oil revenues from the NRF to finance the 2025 Budget. “To spend 95% of the income in the NRF is criminal, dangerous, and may have already placed us at risk due to the overdependence on oil and the lack of significant improvement in the non-oil sectors,” Norton said during the debate on Thursday.
(Patterson pillories govt. for reckless spending of oil money)
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The PPP/C’s greatest liability
Peeping Tom Kaieteur News- One might have expected that a ruling party basking in the largesse of oil wealth would chart... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
