Guyana: Government withdraws $200 million from Natural Resource Fund

The government of Guyana issued a statement recently, saying it has withdrawn $200 million from the nation’s Natural Resource Fund (NRF). The statement which was released by the Ministry of Finance quoted Senior Finance Minister Ashni Singh saying that the Irfan Ali government had made it’s third and fourth withdrawals from the fund, in keeping with the stipulations of the Natural Resource Fund Act.

It has also been made public that in August and September, two transactions of $100 million each had been conducted. Through the process, the funds were transferred from the Natural Resource Fund to the Consolidated Fund.

According to the authorities, the funds will be allocated with the purpose of financing national development, which has been deemed a priority by the government. The $200 million USD amount to roughly GUY 41.6 billion, an astonishing amount regardless of which currency it is counted in.

The statement also made it public that in February and May the government made withdrawals amounting to an eye watering $400million USD, which amounts to roughly GUY 83.2 billion. This brings the cumulative withdrawal from the Natural Resource Fund for the year to a grand total of $600 million USD, amounting to about GUY 124.8 billion.

“In keeping with the NRF Act 2021, as part of the Budget 2023 process, Parliamentary approval was granted for a total of US$1.002 billion to be transferred during fiscal year 2023,” the statement said, adding that the government will continue to work “aggressively through sound and transformative investments of oil resources from the NRF, utilizing these resources in a clear and transparent manner, to the benefit of present and future generations”

The government has also made it clear that the Natural Resource Fund has the singular purpose of allowing the government to invest the earnings from the nation’s oil resources, in a prudent manner for the betterment of the nation, both in the current moment and for the benefit of future generations.

This also allows the government to mitigate the volatility of revenue streams from the natural resource market, which is inherently unstable. Management in a linear manner allows the government to ensure that the revenue stream can be maintained in an appropriate manner for future generations as well.

The nation of Guyana is also a massive proponent of establishing a green economy, hence the correct management of the Natural Resources Fund allows the government to work on that goal. It also allows the nation to allocate the funds to projects which are aimed at developing the nation’s infrastructure, which is an absolute priority.