Indar defends multi-billion-dollar subsidies as utility costs dominate budget scrutiny

With a large portion of his ministry’s 2026 budget tied up in subsidies, particularly a multi-billion-dollar transfer to Guyana Power and Light Inc. (GPL), Minister of Public Utilities and Aviation Deodat Indar on Tuesday defended the estimates.

He said the government is being forced to absorb rising operational costs in essential services, even as his newly configured ministry remains lean in staffing and administrative overhead.

Indar’s presentation before the Committee of Supply came as the National Assembly continued scrutiny of budget estimates for 2026, with Opposition members pressing for clarity on how the ministry intends to manage an expanded portfolio while overseeing significant financial commitments.

The sharpest focus fell on subsidies and contributions, where Indar disclosed that GPL alone accounts for a $25 billion allocation in the estimates. He sought to justify the figure by pointing to the impact of fuel price volatility on electricity generation costs, telling the committee that even small movements in fuel prices can produce major financial consequences for the utility.

Indar explained that GPL’s dependence on fuel remains a major driver of expenditure, and that the state’s continued financial support is tied to stabilising operations in a sector vulnerable to global market fluctuations. He noted that fuel prices have been trending upward and that GPL’s fuel consumption is so large that price increases quickly translate into billions of dollars in additional cost.

In defending the allocation, Indar argued that government support is necessary to prevent the burden from shifting directly to consumers through higher tariffs or service instability.

While subsidies dominated the debate, Opposition members also questioned whether the ministry has the administrative capacity to coordinate and oversee major agencies and projects. Concerns were raised about the ministry’s role in monitoring and evaluation across programmes, and whether mechanisms exist to ensure accountability in a sector where large sums are spent annually.

Indar responded by portraying the ministry as small but strategically positioned, saying its coordination role is being strengthened through systems rather than expanded bureaucracy. He pointed to the development of monitoring tools, including what he described as a government-wide dashboard system to track projects and interventions across agencies under the ministry’s remit.

The minister also faced questions about office accommodation and rental costs, with references made to the ministry’s current use of rented space. Indar attributed the arrangement to a shortage of available government buildings, suggesting that rental was a practical necessity rather than a sign of excessive spending.

He maintained, however, that the ministry itself is operating with minimal staffing resources, stating that his personal office is functioning with a small team and limited vehicles. He said the ministry’s operations remain “nimble” despite its expanded responsibilities, including oversight linked to electrification works, aviation regulation and broader public utilities management.