–places country in a position where it boasts second lowest debt-to-GPD ratio in the hemisphere
–creates fiscal space for aggressive, strategic investments, Dr Singh says in response to Opposition’s attempts to distort facts
THE Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, last Friday mounted a robust defence of the government’s fiscal management, pointing to Guyana’s low debt burden as evidence of what he described as prudent and responsible economic stewardship.
Bringing the 2026 Budget debate to a close, Dr Singh contrasted Guyana’s current debt-to-gross-domestic-product (GDP) ratio with those of countries across the hemisphere and beyond, many of which exceed 80 per cent and in some cases surpass 100 per cent.
He reported that Guyana’s debt-to-GDP ratio stood at 28.6 per cent at the end of 2025, making it the second lowest in the western hemisphere.
He further highlighted sharp improvements in the country’s debt-service obligations, noting that in 1993, Guyana had been spending more than its total revenue to service debts.
By comparison, he said, in 2025 the debt service-to-revenue ratio had fallen to 5.53 per cent, meaning that just over five per cent of government revenue was now being used to meet debt payments.
“When countries around the hemisphere and around the world have a debt-to-GDP ratio that exceeds 100 per cent, and in even more cases that exceed 60,70 80 per cent, Guyana’s debt-to-GDP ratio at the end of 2025 was 28.6 per cent, like I said, the second lowest in the western hemisphere. Mr Speaker, and the same applies to our debt service to revenue ratio,” Dr Singh told the House.
He added: “It is this People’s Progressive Party/Civic government and our predecessors that brought Guyana back from bankruptcy.”
The minister explained that this fiscal space has allowed the government to pursue aggressive investments aimed at transforming the country’s long-term economic prospects, while simultaneously expanding and improving social services for citizens.
“…in 2025, the debt-service-to-revenue ratio in Guyana was 5.53 per cent. Coming from a position where we were spending more than 100 per cent of our revenue, we are now spending 5.5 per cent of government revenue to service our debt. And at the same time, sir, we are investing aggressively to transform our country for the long term. And at [the] same time sir, we are improving and expanding social services,” he told the National Assembly.
He dismissed criticisms from the opposition benches, accusing some members of distorting facts and misrepresenting the country’s economic reality in an effort to mislead the public.
Emphasising that the current period marked a clear break from past practices, the minister maintained that the government’s approach reflects a new era of sound financial management focused on sustainability, development and social progress.
During his presentation of Budget 2026, he had said the ratio of total public and publicly guaranteed (PPG) debt to Gross Domestic Product had fallen from 47.4 per cent at the end of 2020 to 28.6 per cent by the close of 2025.
He disclosed that total PPG debt stood at US$7.7 billion at the end of 2025, reflecting net inflows from both domestic and external financing sources. Domestic debt accounted for the larger share at 62.3 per cent, or US$4.8 billion, while external debts made up 37.7 per cent, totalling US$2.9 billion.
Dr Singh further reported that total debt-service payments for 2025 amounted to US$264.6 million, of which US$176.6 million was paid to external creditors and US$88 million to domestic creditors.
Notably, 5.5 percent of government revenue went towards debt service in 2025, down from 8.5 percent in 2020.
Dr Singh had assured the House then that Guyana’s debt position is projected to remain strongly sustainable over the medium term, even as the government presses ahead with its wide-ranging development and economic transformation agenda.
