-GPL $16b, GuySuCo $9.5b
The government is seeking Parliament’s approval for over $40 billion in supplementary funds to shore up needed expenditure up to the end of 2024.
To this end, the Ministry of Finance in a release informed that Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh, yesterday presented Financial Papers Numbers 1 and 2 of 2024 to the National Assembly totalling over $40 billion during the 84th Sitting of the Twelfth Parliament.
The release explained that Financial Paper Number 1 for which the Minister is seeking approval caters for Supplementary Estimates (Current) in relation to advances made from the Contingency Fund totalling $8.6 billion for the period 2024-04-01 to 2024-07-30. Financial Paper Number 2 caters for Supplementary Estimates (Current and Capital) totalling $32.2 billion for the period ending 2024-12-31.
The release pointed out that among the major sectors seeking funding is electricity, where a total of $16 billion is being sought for the Guyana Power and Light (GPL) of which $4 billion is under Financial Paper 1 and a $12 billion Supplementary request in Financial Paper 2. It recalled that President Irfaan Ali had announced that government would be absorbing the impact of rising fuel prices on the cost of services provided by electricity companies to ensure that it does not translate to higher electricity prices for Guyanese.
Government is also seeking supplementary approval of $1.1 billion for additional resources to support electricity companies in Linden, Lethem, Mabaruma, and Matthews Ridge. It reminded that several measures were implemented to mitigate the rising cost of fuel including the removal of the Excise Tax on this commodity since March 2022, which resulted in over $80 billion in savings to citizens annually. Further, to bring greater reliability in terms of the supply of power being provided by GPL, in May this year, 36 megawatts of power was added to the national grid through an agreement with the Turkish Company, Karpowership.
Another sector under which government is seeking approval for a supplementary sum is the agriculture sector including an allocation of $9.5 billion for the Guyana Sugar Corporation (GuySuCo) as part of its continued efforts to revitalise the industry in line with its commitment to the country. Government also aims to re-energise local communities it claims were “devastated” by the “unconscionable actions” of the country’s former governing coalition – A Partnership for National Unity+Alliance For Change (APNU+AFC).
Financial Paper 2 also caters for a sum of $1.6 billion under the Ministry of Public Works for Sea and River Defence works, $297.4 million to support the operations of the Transport and Harbours Department, $159.2 million for the completion of the Bartica Stelling, and $680.5 million to facilitate critical upgrades to ferry vessels.
Further, in relation to infrastructure and amenities, government is seeking an additional $904 million for the construction and rehabilitation of hinterland roads and $600 million for the completion of infrastructure for the critical supply of water to these far-flung communities.
In Financial Paper Number 2, government is also seeking a supplementary sum of $2.3 billion to settle outstanding payments owed to numerous suppliers of goods and services to a number of government agencies over the years, the release added.
