The recent remarks by Dr. Bharrat Jagdeo, the General Secretary of the People’s Progressive Party/Civic (PPP/C), underscore an important issue: the apparent lack of understanding by opposition parties—the People’s National Congress Reform (PNCR), A Partnership for National Unity (APNU), and the Alliance for Change (AFC)—on how Guyana’s oil revenues are being managed.

While the opposition may criticize the government’s approach, it is clear that the administration has been prudent in managing oil resources for sustainable development.

Dr. Jagdeo’s argument that oil revenues account for less than 30 percent of the national budget highlights the government’s cautious approach in avoiding over-reliance on oil wealth.

This is a crucial distinction that is often lost in opposition rhetoric. The PPP/C government has consistently emphasized the importance of building resilience in non-oil sectors to ensure that the economy does not collapse in the face of fluctuating oil prices.

This is a strategy that reflects lessons learned from countries like Suriname and Trinidad and Tobago, which faced significant economic turmoil due to unsustainable fiscal policies and dependence on oil revenues.

One must also acknowledge the transparency measures implemented by the government through the amended Natural Resource Fund (NRF) Act. The annual parliamentary approval for withdrawals and the independent oversight board are vital steps in ensuring that oil revenues are managed with accountability and public scrutiny.

These actions demonstrate the government’s commitment to transparency and responsible governance—principles that should resonate with any political party genuinely interested in Guyana’s future.

The $200,000 one-off cash grant recently announced by President Dr. Mohamed Irfaan Ali, aimed at helping citizens cope with rising food prices, is another example of the government’s strategic use of oil revenues to address immediate socio-economic challenges while ensuring long-term stability.

Such interventions, coupled with other initiatives like the COVID-19 relief grants and pensioners’ assistance, reflect a balanced approach to public welfare. These actions show that the government is not squandering resources but rather investing in its people while preparing for the future.

Critics may argue that more should be done, but they must also recognize the constraints and broader economic strategy at play. Oil wealth, while transformative, must be managed judiciously to avoid the resource curse that has plagued other nations. The PPP/C administration’s focus on infrastructure development, economic diversification, and job creation, alongside its reforms in the Petroleum Activities Bill and Production Sharing Agreements, positions Guyana to leverage its oil reserves responsibly.

As production increases, reaching a projected one million barrels per day by the end of the decade, the government is rightfully laying the groundwork for a diversified economy that will benefit all Guyanese.

The Local Content Act, which ensures that Guyanese companies benefit from procurement opportunities, is another testament to the government’s commitment to ensuring that the oil wealth does not remain in the hands of foreign companies but instead stimulates local industries and businesses.

The opposition’s critiques of the government’s handling of oil revenues, therefore, seem disconnected from the reality of what is being done to secure a prosperous future for Guyana.

The challenge for the opposition is not to simply oppose, but to present a coherent alternative that demonstrates a better understanding of how to manage oil wealth in a sustainable and transparent way.

Until then, the PPP/C government’s approach appears not only prudent but also visionary, as it seeks to balance immediate needs with long-term stability in a rapidly evolving global oil market