Guyana’s current revenue to climb by 37.4% to over $820B in 2024

…capital spending on energy, housing & infrastructure increased – BoG

The Bank of Guyana is forecasting that Guyana’s current revenue, which is the money the country earns from sources such as taxes, will increase by 37.4 per cent for the year 2024. A major contributor to this is tax collection, as industries in the country continue to expand.
According to the central bank’s recently released Mid-Year report, the government’s current revenue is expected to increase to $821.7 billion. Already for the first half of the year, the current account surplus grew by $20 billion, to $130.9 billion.

This is an increase compared to the surplus of $110.8 billion that was recorded in the corresponding period last year. According to the report, there was a $63.5 billion increase in current revenues in the first half of the year. The report puts this growth in revenue, down to collections by the Guyana Revenue Authority (GRA).
“The higher current revenues reflect a growth in GRA tax revenues by G$34,175 million and Natural Resource Fund withdrawals, which expanded by G$31,197 million to G$114,388 million or 33.3 per cent of current revenue,” the report stated.
That being said, the report also forecasts that central government’s overall balance will record a deficit of $332.7 billion at the end of this year. This is due to the increased spending on budgeted capital and current programmes, which is expected to increase to $677.8 billion and $484 billion, respectively.
It was explained that while the capital account deficit is due to the acceleration of development projects, the current account deficit is attributed to transfer payments and employment costs. The capital account’s deficit of $161.6 billion, according to the report, is due to increased capital spending on power generation, housing and other strategic infrastructure projects
“The overall financial operations of the public sector recorded a deficit of G$30,321 million mainly due to Central Government budgetary expenditure. Central Government recorded a deficit of G$30,701 million due to higher budgetary spending. The current account recorded a surplus of G$130,934 million, driven by a 22.7 per cent or G$63,567 million increase in current revenues relative to a 25.7 per cent or G$43,521 million increase in expenditure to G$212,722 million.”
“The capital account recorded a deficit of G$161,636 million due to increased capital spending on power generation, housing and other strategic infrastructure projects. NFPE (Non-Financial Public Enterprises) recorded a surplus of G$380 million, mainly due to higher current receipts, which surpassed the growth in total operating expenses,” the report explained.
The People’s Progressive Party/Civic (PPP/C) Government is undertaking a number of massive capital projects with a 2030 and beyond focus, including the US$260 million Demerara River Bridge, the US$190 million Linden to Mabura road and a bridge across the Berbice River. In the case of the Demerara River Bridge, the structure will have a lifespan of 100 years… far eclipsing the lifespan of the old bridge.
The new bridge will be a fixed 2.65-kilometre, four-lane, high-span, cable-stayed structure across the Demerara River, with the width of the driving surface being about 23.6 metres. The bridge, which features a bicycle lane, will bring an end to closures to vehicular traffic with a 50-metre fixed-high span to cater for the free flow of vessels uninterrupted. The river will be dredged along a 13.5-kilometre stretch to accommodate large vessels.
Back in 2022, $21.1 billion was allocated towards work on the bridge. China Railway Construction Corporation (International) Limited (CRCCL) joint venture outbid four other pre-qualified international companies that submitted proposals for the project.
Another long-term project will be the Gas-to-Energy (GtE) Project, which will have a lifespan of 25 years when complete. It will feature approximately 220 kilometres of a subsea pipeline offshore from the Liza Destiny and Liza Unity floating production, storage and offloading (FPSO) vessels in the Stabroek Block to Wales, West Coast Demerara (WCD).
Upon landing on shore, the pipeline will continue for approximately 25 kilometres to the Natural Gas Liquid (NGL) plant to be constructed at Wales. The pipeline would be 12 inches in diameter and is expected to transport some 50 million standard cubic feet per day (mmscfd) of dry gas to the NGL plant, but has the capacity to push as much 120 mmscfd. (G3)