Govt seeking $61B in supplementary funding for countrywide developmental initiatives

…raising debt ceiling allows for rapid development – Finance Minister

Government approached the National Assembly on Thursday for an additional $61.013 billion in supplementary funding, to be injected into several key sectors for the remainder of the fiscal year 2023.
Financial Paper No.3 was presented by Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh. Funds were requested for continued expenditure, for which consideration of estimates will be convened at the next sitting.
A significant chunk of this money, to the tune of $33.37 billion, is for the Public Works Ministry, spanning capital projects. Some $25 billion for road works is for construction of, and rehabilitation of, community road; $1.5 billion for rehabilitation of hinterland roads and $1 billion for urban road works.
Construction of the Wismar Bridge warranted a sum of $2.1 billion, while $600 million has been earmarked to address emerging threats along the sea and river defence network.
Emergency works and resources needed to restore the Kumaka and Supenaam Stellings are expected to cost $32.7 million from the estimates provided. For advancement of works at Kingston Goods Wharf and Morawhanna, Port Kaituma and Kumaka Stellings, $2.5 billion was requested from the House.
Another $5.6 billion was sought for the Agriculture Ministry – $1.5 billion for rehabilitation of abandoned lands at Albion, Blairmont, Rose Hall and Uitvlugt estates.
The sum also catered $4 billion for urgent drainage and irrigation works in Regions Two (Pomeroon-Supenaam), Three (Essequibo Islands-West Demerara), Four (Demerara-Mahaica), Five (Mahaica-Berbice) and 10 (Upper Demerara-Berbice).
Under the auspices of the Office of the Prime Minister – Power Generation, $5.047 billion was requested to advance the gas to power project through the provision of additional resources to support transmission and distribution undertakings. Monies were also budgeted under its Telecommunications and Innovations Unit.
Meanwhile, over $2 billion was requested by the Education Ministry for resources to be procured for the nursery, primary and secondary levels.
Under the Health Ministry, Government is seeking to upgrade existing facilities with $1 billion.
Last month, a $31 billion Supplementary Appropriation Bill was endorsed by the National Assembly, paving the way for funds to be injected into climate adaptation measures and support for Indigenous communities.
The Bill, comprising Financial Paper Number 1 and 2 of 2023, was first presented on April 24 during the 63rd sitting of the National Assembly, and allocated US$150 million in revenues from carbon credits towards two critical priorities under the Low Carbon Development Strategy (LCDS).
Due to the aggressive push to execute critical works and infrastructure, there has been a demand for increased funding. In fact, this year saw the House approving a whopping $781.9 billion for the 2023 Budget – the first to be financed in part by revenues earned from Guyana’s historic carbon credit sale agreement, and the largest ever in the country’s history.

Rapid Development
Sporting one of the lowest debt-to-GDP ratios globally, Government’s move to raise the borrowing threshold was also defended, dubbed as moving one step closer towards delivering development in an accelerated manner. Dr Singh told the National Assembly that as the earning increases, so does the capacity to carry debt.
In July, the Finance Minister had proposed adjustments to the two ceilings. Firstly, that the domestic public debt ceiling be increased to $750 billion, up from $500 billion from its last revision. The second was for a new external borrowing ceiling of $900 billion, after its last increase to $650 billion.
As he defended this move during Thursday’s sitting, he voiced, “The rumblings that we’re hearing on the other side reflect their studied opposition to development in this country. They are well aware that every single loan that has been contracted under this Government has been invested in economic and social development, and improving the circumstances of the people of Guyana.”
According to Singh, there is nothing wrong with responsible borrowing. This is coupled with the fact that his administration managed to restore debt sustainability from the precipice of bankruptcy.
“The People’s Progressive Party’s record in Government, as far it relates to the achievement, maintenance, preservation and strengthening of debt sustainability, is incomparable in the entire history of this country… History will record that, in 1992, the People’s Progressive Party assumed office in an environment where Guyana was completely bankrupted as a country. We were uncreditworthy,” he zeroed in.
Today, Guyana’s debt is just about 25 per cent of its Gross Domestic Product – a turnaround from its towering debt pre-1992.
In line with the Government’s commitment to maintaining its sterling track record of transparent and prudent debt management, the increase in the debt ceilings aims to avert the dependency on utilising the Consolidated Fund overdraft as a means of financing, which was done under the APNU/AFC Administration. (G12)