Country’s largest budget of $552.9B fuelled by oil revenues

Guyana 2022 national budget of $552.9 billion was fuelled by oil revenues.

Since the country began producing oil over five years ago, none of the revenue was spent. But the passage of the Natural Resource Fund Act (NRF) allowed the government to withdraw all of the money and use it to finance the budget

That amount withdrawn is $126.7 billion.

“This ensures that the accelerated development agenda outlined in this budget, the critical investments proposed, as well as the measures still to be announced, can be financed without excessive borrowing or the introduction of any new taxes,” Dr Ashni Singh, the Minister of Finance stated.

With two production and offloading vessels expected to be in operation this year, it is anticipated that there will be 94 lifts from the Stabroek Block, 13 of which will be Government lifts.

From this, it is estimated that deposits into the NRF for 2022 will total US$957.6 million, comprising some US$857.1 million earned from the Government lifts of profit oil, and an additional US$100.5 million from royalties.