Jordan warns against using inflated growth from oil to increase country’s debt

Feb 02, 2026 News

Kaieteur News – The Government of Guyana (GoG) will be increasing the country’s debt by the end of 2026 to a troubling US$10.3 billion, all while assuring citizens that its borrowing stands within the threshold- a dangerous move that could affect generations to come.

Former Finance Minister, Winston Jordan sharing comments on Budget 2026, during his appearance on ‘The Countdown’.

Sounding this alarm was former Finance Minister, Winston Jordan during an appearance on ‘The Countdown’ show, streamed across social media platforms on Sunday.

In yesterday’s episode, Jordan focused on the $1.558 trillion Budget for 2026, laid in the National Assembly on January 26. In three words, he described the fiscal blueprint for the nation as “reckless, thoughtless and heartless.”

He pointed out that Guyana simply does not have the physical, financial or human resources to run such a large budget.

The former minister noted that this year’s budget will be financed by about $512 billion in taxes, along with carbon credit and GRIF inflows of another $49 billion. Government has also signaled that $495 billion in oil revenue will be available this year to finance national development priorities, leaving a deficit of $491 billion which will be financed through loans.

This increased borrowing will move Guyana’s debt burden from US$7.7 billion at the end of 2025 to US$10.3 billion this year.

With Guyana’s debt now hitting double digits, Jordan cautioned against using inflated growth in Gross Domestic Product (GDP) to justify borrowing.

“The minister will love us to believe that don’t be scared about borrowing. The borrowing is within thresholds and limits and so on. Let me tell you, threshold don’t pay back debt. We could have the lowest of threshold of debt to GDP but it doesn’t mean that the earnings are coming to the country for us to pay back those debts,” he explained.

Jordan clarified that the unprecedented growth in the oil sector creates the illusion of growth in the country, when in reality, the majority of oil produced offshore does not flow to Guyana.

Although Guyana only receives 14.5 per cent of the wealth generated, Jordan said the production figures nonetheless creates the illusion of massive growth in the economy.

In 2025 the country in recorded 260 million barrels of oil of which Guyana only received 32 million barrels.

Consequently, Jordan reasoned, “Because of oil, our GDP is inflated. It gives the wrong sense that the country is growing. When you add up, after all oil, is over 80 per cent of the economy and more than two- thirds of the GDP. Most of this oil, as you know, don’t belong to Guyana. It belongs to Exxon and partners, but when you take a debt and put it on this expanded GDP, most of it doesn’t belong to you and you use that as your indicator, you going down the wrong track.”

Jordan added that a more accurate indicator of the country’s debt to GDP should be calculated using the non-oil economy, as this would inform leaders whether or not they are extending the country’s borrowing capacity.

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budget, Debt, GDP, Jordan, loans, reckless

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