THE 2024 budget is expected to be read this month with significant funding from oil revenues. It is anticipated that this budget cycle will see increased benefits from the oil sector reaching citizens by way of development projects.

To put this in context; oil revenues funded 23 per cent of 2022’s $553 billion budget which was 44 per cent larger than the 2021 budget. Then, in 2023, oil revenues funded 30 per cent of the $781.9 billion budget. This steady increase in the country’s budget speaks directly to the government’s ability to up its developmental spending because of increased revenues from the oil sector.
The increased budgets over the last few years have also resulted in a growing number of developmental projects, including six new regional hospitals, several roads and roundabouts, as well as ongoing plans for the much-anticipated Gas-to-Energy project at Wales, West Bank Demerara.

This project is aimed at reducing electricity costs by 50 per cent while using additional gas to supply Guyana’s domestic needs. According to the Inter-American Development Bank (IDB) 2023 report, the country’s booming oil and gas industry was credited as one of the main drivers of economic development, as well as the decline in unemployment.

Job creation has been a target of the government, which resulted in initiatives such as scholarships for Guyanese and the implementation of the Board of Industrial Training programme.
In 2023, over 350,000 Guyanese benefitted from almost $70 billion in oil revenues. Vice President, Dr. Bharrat Jagdeo highlighted that over 200,000 children, 74,000 pensioners, and 54,000 public servants were beneficiaries of those funds. In anticipation of the 2024 budget, it is projected that allocations towards all sectors, will surpass last year’s sums.

As a reminder, the health sector received $84.9 billion, which saw the development of hospitals and significant facility upgrades to other health institutions. The education sector received $94.4 billion, which provided more access to quality education. The Human Services and Social Protection Sector received the sum of $40.4 billion. These are just a fraction of the $781.9 billion 2023 budget.

As Guyana’s economy continues to experience robust growth, it is important to highlight and understand that these developments were made possible with the support of earnings from just two Floating Production Storage and Offloading (FPSO) vessels.

The third FPSO, Prosperity, will soon achieve its initial production target of 220,000 barrels per day and will contribute significantly to Guyana’s Natural Resource Fund. With more oil revenue from the Prosperity FPSO, Guyana’s development will intensify, leading to more benefits for Guyanese.