Guyana government tables massive $1.38 trillion budget …Maintains double digit growth despite fall in GDP expansion

Guyana has unveiled its largest budget since the addition of its oil resource at a whopping $1.38t, 20.6 percent larger than last year’s. Minister of Finance Ashni Singh on Friday 17 delivered budget 2025 under the theme, “A secure prosperous, and sustainable Guyana”, detailing projected Gross Domestic Product (GDP) growth at 10.6 percent, mainly supported by the non–oil economy which expects double digit growth of 13.8 percent. The country’s oil economy will expand by 9.5 percent, a significant dip from last year’s figures caused by lower oil prices.  Guyana’s economy grew by 43.6 percent last year while its non-oil and oil sectors grew by 13.2 percent and 57.7 percent respectively.

Highlighting macroeconomic developments for 2024, Minister Singh pointed out that the agriculture, forestry, and fishing sectors grew by 11 percent; the extractive sector grew by 55.9 percent and the services sector grew by 7.4 percent.  Construction, he added grew by 30.8 percent. In 2025, the agriculture, forestry, and fishing sector is expected to grow by 11.4 percent. The extractive industry is estimated to grow by 10 percent and the services industry by 8 percent. The manufacturing sector is expected to grow by 13 percent.

To support projected increases for the sector this year; the minister noted that $800million will be injected to support investments in value-chain development, $2.9billion to support the development and growth of new crops, $1.3billion into fisheries and aquaculture development, $13.3billion for the rehabilitation of the sugar industry and $430.9million for the rice sector.  The government will also spend $ 1.7 billion to expand the production of the livestock sector while investing $ 73.2 billion will be used to upgrade and expand drainage and irrigation networks across the country.

Eighty-eight billion Guyana dollars is expected to be spent on the expansion and diversification of the energy sector in the government’s bid to achieve reliable electricity at a reduced cost.  The development of roads and bridges infrastructure will cost the government some $ 209.3 billion this year, while air transport will see an investment of $ 7 billion and river transport, an investment of $ 9.9 billion. The government intends to invest $ 8.2 billion in the development of sea and river defense systems.

The health sector will get a $143.2 billion investment geared toward the expansion and improvement of the public healthcare system. Education will receive $ 175 billion, while $ 112.6 billion will be invested into the housing sector, inclusive of $13.2billion for solid waste management and $ 23.1 billion to expand water delivery and improve its quality to Guyanese homes. The Ministry of Culture, Youth, and Sports will receive $ 11.6 billion, while the Ministry of Human Services will receive $ 58.5 billion for initiatives in social services. The Ministry of Home Affairs will receive $108.7billion of which $34.4billion is slated for the Guyana Police Force.