Vice President, Dr. Bharrat Jagdeo, has refuted the opposition’s claim that a potential APNU-AFC government could finance higher salary increases for citizens using the interest accrued from the Natural Resource Fund (NRF). The opposition economic advisor suggested at a recent press conference that the NRF’s interest could cover salary increases exceeding the 6.5 percent granted to public servants in 2023.
During a press conference at the Office of the President, Dr. Jagdeo countered this argument, providing financial details. He clarified that the NRF held approximately US$270 million in 2022, and with an average interest rate of 5 percent from safe instruments managed by the Central Bank of Guyana, the interest earned would amount to just over US$13 million or GY$2.7 billion.
Dr. Jagdeo emphasized that even with additional contributions to the NRF in the current year, the interest alone would not suffice to meet the total cost of public servant salary increases. He highlighted that the 6.5 percent salary hike implemented by the government in 2023 amounted to GY$7.9 billion, while the NRF’s interest could only cover GY$2.7 billion.
Critiquing the opposition’s stance, Dr. Jagdeo labeled it as “wild rhetoric” and criticized their lack of understanding regarding the purpose of the NRF. He explained that the NRF’s restructuring aimed to prevent direct charges on the fund, ensuring that all expenditures from oil money undergo parliamentary scrutiny and approval to prevent corruption.
Reflecting on past policies, Dr. Jagdeo linked the opposition’s approach to the country’s historical economic challenges. He argued that the country’s previous debt-driven model, inherited from past PNC governments, had hindered development opportunities in health care and education.
He underscored the importance of the amendments made in 2021 to the NRF Act, promoting transparency and accountability in managing Guyana’s oil resources. The amended act requires annual parliamentary approval for NRF withdrawals, with the government’s final transfer of US$152.1 million (equivalent to G$31.6 billion) on December 27, 2023, aligning with the approved total withdrawal of US$1.002 billion (equivalent to G$208.9 billion) for 2023.
