Norton’s incompetence reflected in his “lack of knowledge” – Jagdeo

General Secretary of the People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, has addressed a misconception in relation to the Natural Resources Fund (NRF), perpetuated by Opposition

Leader, Aubrey Norton. During a press conference at Freedom House, Robb Street, on May 11, 2023, he clarified that the investment committee overlooks the investment of sums that remain in the NRF and not the portion that is allocated to the budget. Norton at a news conference on May 9, 2023, was questioned on whether he was concerned that the investment committee has not disclosed how the withdrawals from the fund are being spent. In his response, he concluded that the current government does not know how to budget well.

Jagdeo said, “First of all, I am shocked that a reporter is linking the investment fund to the spending in the budget, and Norton didn’t know about that, or couldn’t point it out. The money that will be saved for the long term-the sum that is not allocated to the budget will have to be invested, and the investment committee is related to those resources that will remain in the fund.”

The General Secretary expressed the view that the opposition leader merely used the question as an opportunity to contend that the PPP/C government ‘does not budget well’. “It’s unbelievable that a leader of the opposition could not point this out. He concluded that the PPP doesn’t know how to budget. It is his incompetence that he reflected there, his lack of knowledge. Can you imagine that somebody who wants to be the president of this country, couldn’t point out this minor difference to the people?” he said.

In the interest of transparency, the Minister of Finance was tasked with informing the public of payments to and withdrawals from the NRF.

“At budget time, there is a formula that we put in the law. The formula, when applied to the total balance [of the NRF] at the end of the year, will determine for the fiscal year, how much money will come from the fund. Every time we withdraw from the fund, we notify. It doesn’t change the amount that will be withdrawn. That is determined at budget time and by formula,” Dr. Jagdeo further explained.

Clear Process

Parliamentary approval was granted for a total of US$1.002 billion to be transferred during the fiscal year 2023.

A total of US$400 million has been withdrawn so far for the year. The funds withdrawn have been transferred to the Consolidated Fund, in keeping with the NRF Act of 2021.

Finance Minister, Dr. Ashni Singh, confirmed that the sum will aid in financing current developmental projects, to improve the lives of all Guyanese. Citizens are already experiencing the effects of development across various sectors.

The Ministry of Public Works has constructed a number of new roads, upgraded dilapidated streets, and improved the drainage systems.

In the education sector, schools have been built and upgraded, resources have been allocated for teachers to be trained, and access to learning has been increased.

Government has prioritised the health of citizens, by providing better access to primary healthcare. Funds will be used to train more healthcare professionals and improve the availability of essential medical supplies and equipment. The administration has also been partnering with the private sector, to ensure more hospitals, clinics, and health centres are constructed across the country.

Investments from the NRF will aid in financing renewable energy initiatives, such as the expansion of solar farms. This is in keeping with the government’s vision of promoting sustainable development and reducing Guyana’s reliance on traditional energy sources. The renewable energy programme will contribute to a greener, cleaner environment while providing a reliable source of electricity for commercial and domestic use.

The government is committed to diversifying the economy and the plans and projects implemented are all geared towards expanding the economic base, utilising proceeds from the lucrative oil and gas industry, to ensure there is no dependency on one sector.

The NRF Act 2021, which came into operation on January 1, 2022, represents a significant improvement in transparency and accountability, and overall management of Guyana’s natural resource wealth.

The PPP/C Government will continue to work aggressively through sound and transformative investments of oil resources from the NRF, utilising these resources in a clear and transparent manner, to the benefit of present and future generations.