Government withdraws $41.6 billion from ‘oil fund’


Senior Finance Minister Dr Ashni Singh on Wednesday announced that the government has made its second withdrawal from the Natural Resource Fund in accordance with the Natural Resource Fund (NRF) Act 2021.

According to a press release from the Finance Ministry, US$200 million equivalent to G$41.6 billion has been transferred from the Natural Resource Fund to the Consolidated Fund to finance national development priorities.

“It would be recalled that in May of this year, Government made its first withdrawal of US$200 million equivalent to G$41.7 billion. This brings the accumulated withdrawals to date from the NRF to US$400 million, equivalent to G$83.3 billion,” the press release noted.

According to the press release, the International Monetary Fund, which recently concluded the 2022 Article IV mission to Guyana in May-June of this year, commended the government on the amendments made to the NRF Act.

“The recent amendments to the 2019 Natural Resource Fund Act set clear ceilings on withdrawals from the fund for budgetary spending and promote transparency in the management and use of oil resources. Staff praised the authorities’ thorough review of the 2019 NRF Act before making amendments, and the restraint in using any oil revenues before the passage of the amendments,’ the Finance Ministry quoted the IMF as saying.

The NRF Act 2021 came into operation on 1st January 2022, and as part of the Budget 2022 process, Parliamentary approval was granted for a total of US$607.6 million to be transferred during the fiscal year 2022.


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