Norton slams govt. heavy reliance on oil fund for 2025 Budget amid declining oil prices
Jan 31, 2025
…says taking out over 90% from fund is reckless
Kaieteur News- Opposition Leader Aubrey Norton has voiced his concerns about the government’s decision to withdraw over 90% of oil revenues from the Natural Resources Fund (NRF) to finance the 2025 Budget – particularly in light of an expected decline in oil prices this year.
Opposition Leader Aubrey Norton (Norton slams govt.)
The government intends to withdraw about US$2.4 billion (G$512 billion) from the NRF to support its US$6.6 billion (G$1.3 trillion) national budget. During the 2025 budget presentation Guyana’s Minister of Finance Minister Dr. Ashni Singh disclosed that in 2025, although Guyana’s daily production is expected to climb, the country will see a decrease in earnings from the sector, as oil price is likely to come down. He explained that global oil supply is expected to surpass demand this year, leading to a 10.9% drop in prices to around US$71.9 per barrel.
During his presentation on the final day of the 2025 budget debate, Norton warned that the government’s over-reliance on oil revenues could have serious long-term consequences. “To spend 95% of the income in the NRF is criminal, dangerous, and may have already placed us at risk due to the overdependence on oil and the lack of significant improvement in the non-oil sectors,” Norton contended.
He stressed that despite the continuous flow of oil revenues since 2020, the administration has failed to adequately develop the non-oil sectors, which he said is key to the nation’s sustainable future. “In 2020, oil resources began to flow, and therefore there are adequate resources for development. It is critical, therefore, for significant attention to be paid to the non-oil sectors since it is the non-oil sector that is the future of Guyana and should be developed in a structured way,” he explained.
Norton accused the government of reckless spending, arguing that their approach undermines the country’s long-term economic stability. “The minister says that he intends to strike an appropriate balance between short-term imperatives and long-term considerations. The present approach of the government is a clear indication that their sole focus is spending out the money as fast as they could…he cannot be talking about short- and long-term balance when they changed the law to be able to take out 95% of the revenue accrued from oil,” he stated.
In addition, Norton said that the next People’s National Congress/ Reform (PNC/R) government will amend the NRF law. He said his administration would amend the law to prevent mismanagement and ensure that oil revenues benefit the broader population while also securing savings for future generations. “We will change the law to ensure oil resources are not plundered and misused, and that those resources are effectively managed and invested to transform the non-oil sector, while ensuring we have funds saved for future generations and for bad times when oil price is low, as is now imminent,” Norton claimed.
Moreover, Norton described the government’s 2025 budget as one favouring a select few while neglecting the broader population. “This budget puts wealth in the hands of a few, the PPP elites…this budget gives little or nothing to the small man, it is self-contradictory, the numbers are fudged, it hides the reality behind the use of percentages rather than actual figures, it is a slush fund and a recipe for illegal enrichment,” Norton stated.
(Norton slams govt. heavy reliance on oil fund for 2025 Budget amid declining oil prices)
Related
Similar Articles
