Second withdrawal from the Natural Resource Fund made by Government

The Government has made its second withdrawal from the Natural Resource Fund in accordance with the Natural Resource Fund (NRF) Act 2021 according to Hinance Minister, Dr. Ashni Singh.

Dr. Singh pointed out that pursuant to Section 16 of the NRF Act 2021, a further US$200M equivalent to G$41.6B has been transferred from the Natural Resource Fund to the Consolidated Fund to finance national development priorities. The minister recalled that in May of this year, Government made its first withdrawal of $200M equivalent to G$41.7B. As such, this brings the accumulated withdrawals to date from the NRF to US$400M, equivalent to G$83.3B.

The finance minister stressed that this transfer was made in accordance with the strengthened legal architecture of the NRF Act 2021. He said that the International Monetary Fund, which recently concluded the 2022 Article IV mission to Guyana in May-June of this year, commended Government on the amendments made to the NRF Act and the staff concluding statement highlighted:

“The recent amendments to the 2019 Natural Resource Fund Act set clear ceilings on withdrawals from the fund for budgetary spending and promote transparency in the management and use of oil resources. Staff praised the authorities’ thorough review of the 2019 NRF Act before making amendments, and the restraint in using any oil revenues before the passage of the amendments,’

As such, he noted that the NRF Act 2021 came into operation on 1^st January 2022, and as part of the Budget 2022 process, Parliamentary approval was granted for a total of US$607.6M to be transferred during fiscal year 2022.

Dr. Singh declared that the 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.