Dear Editor,
I write to respond to the claims published in the Stabroek News editorial “Spending the oil money” on April 25, 2022, that argues the Guyanese government is making a flawed decision by immediately using funds from the Natural Resource Fund (NRF).
I understand the hesitation and do believe people have a right to be cautious; however, Guyana is in a very lucrative position as an emerging oil producer and should be taking advantage of this global demand for oil. The volatility of the oil market and barrels hovering around US$106 per barrel creates a unique opportunity for the country. So, I disagree with the claim that it was “deeply flawed” for the government to use the US$607 million it earned from oil last year.
The concern that the government dipping into the NRF in its first year of operation will set a bad precedent for future years of excessive withdrawals is misguided. Oil revenues will be a fact of life for Guyana for many years to come and this amount will soon look trivial. The reality is that this first allocation has been used to support the 2022 budget, a budget that is a 44 per cent increase over 2021 and includes increased spending on infrastructure, electrification, gas-to-energy, hydropower, and solar energy projects. The implication that no one has a clue how the first year’s allocation will be spent is an unfair mischaracterisation of the government’s continued transparency with Guyanese people.
Yes, it is imperative that money that’s flowing in is spent wisely, but we should also appreciate the transformative revenues we’re dealing with, and the endless possibilities afforded to Guyana today that were simply unimaginable a few years ago.
It is one thing for a country like Norway that is well-developed with good infrastructure to think only about saving oil money for the future. But Guyana has real needs now. This money must be put to use to better the lives of citizens—better roads and bridges, reliable electricity, better schools, bolstering seawalls and coastal defences—all things that can help us prosper long-term.
The government can use the returns from the oil and gas sector to invest in the future of the country, which will not include oil and gas forever. Guyana’s rapid development is a prime example of the growth that can happen in a short amount of time when the proper investments are made into a country. But there are many more areas where the government rightly recognises that it has an obligation to spend revenues to help. Just look to education and healthcare, both sectors received over a 20 per cent increase this budget cycle. Now think about what can be done over the next decade as Guyana takes in tens of billions more.
Caution about spending is well-intentioned and every safeguard should be put in place to ensure that funds are spent wisely and transparently. But Guyana is sitting on an incredible opportunity that will only come once and the government is wise to seize it.

Yours sincerely,
Romel Khan