GUYANA’S emergence as an oil-producing nation has transformed its ability to meet its needs, with oil revenue now contributing an increasingly larger share of the national budget. In just three years of oil fund withdrawals, now entering the fourth, this revenue source has become a pillar of the government’s financing strategy for its agenda. Oil revenue operates alongside other important funding sources, creating a balanced framework for national development.

The Guyana government began spending from the Natural Resource Fund (NRF) in 2022. That year, oil revenue funded 23% of the US$2.65 billion (GY$553 billion) budget, with US$607 million (GY$126 billion) withdrawn under a special provision allowing the government to access the entire accumulated balance of the fund since oil production began in December 2019. Since then, withdrawals have been governed by the legally mandated NRF formula, which ties annual withdrawals to deposits from the previous year. As a result, oil revenue contributions have steadily increased, correlating with the growth of the sector.

In 2023, oil revenue funded 27% of the US$3.75 billion (GY$782 billion) budget, rising to 29% of the US$5.5 billion (GY$1.15 trillion) budget in 2024. In 2025, oil revenue is projected to contribute 37% of the US$6.63 billion (GY$1.38 trillion) budget, with approximately US$2.46 billion (GY$513 billion) to be withdrawn. This steady growth shows how oil earnings are reshaping the government’s capacity to contribute funding to transformative projects, like the new Demerara River Crossing.

The increase in oil revenue has enabled major capital investments, including new hospitals, and schools, expanded energy projects, and enhanced infrastructure such as roads and bridges. It has also bolstered social programmes.

However, the success of Guyana’s development agenda cannot solely be attributed to oil revenue. Other vital sources of funding, such as tax revenue, dividends from state-owned enterprises, licensing fees, loans, and development grants, continue to play a role. The sale of carbon credits, part of Guyana’s efforts to monetise its vast forest resources sustainably, also contributes to the national budget. Together, these revenue streams complement oil earnings, enabling the government to undertake projects that improve access to healthcare, education, utilities, and infrastructure.

Importantly, the fiscal space created by oil has strengthened Guyana’s borrowing capacity. Confident in its ability to service debt through future earnings, the government has been able to secure financing, such as a US$526 million (GY$110 billion) loan from the United States Export-Import Bank for the Gas-to-Energy project. Such agreements are also reflected in the steep increase in the national budget, which has grown from US$1.84 billion (GY$384 billion) in 2021, the last year without oil revenue, to US$6.63 billion (GY$1.38 trillion) in 2025—a 3.6-fold expansion.

Transparency and accountability remain central to the management of the NRF. The fund’s operations are governed by stringent reporting requirements, including monthly and quarterly disclosures of revenues and withdrawals. Parliament approves all withdrawal requests, ensuring that oil wealth is used responsibly.

Looking ahead, the government expects more than five times its 2024 receipts in additional oil revenue over the next four years, increasing its ability to invest in development and improve the quality of life for Guyanese.