Guyana to reduce borrowing for infrastructure projects- Jagdeo

Last Updated on Wednesday, 16 July 2025, 22:57 by Writer

Vice President Bharrat Jagdeo on Wednesday said Guyana would be borrowing less and spending more of its oil revenues to build major social and physical infrastructural projects as part of a broader plan to ensure the economy is sustainable after all the oil is extracted.

“It is our hope in the future, as we get more revenue, we would have to borrow less to finance the programme because the budget will be supported more from revenue,” he told his People’s Progressive Party (PPP) consultation on the manifesto for the September 1, 2025 general and regional elections.

He noted that the East Bank Demerara road rehabilitation project, and the Crane-Demerara Harbour Bridge road on West Demerara were funded from domestic revenues. “Sometimes when you see a big increase in the budget, it’s for a specific purpose so our borrowing policy will be attenuated but we have the capacity to borrow without burdening future generations,” he said.

Wary of Guyana’s economy being afflicted by Dutch Disease and volatile oil prices, the PPP General Secretary said government was working to diversify the economy through agriculture, creative industries, services sector and integration with neighbouring Brazil “to create new growth poles” for future wealth creation and sustainable prosperity. “We are already working on a post-oil and gas economy and a diversified economy although we are just starting to produce oil and gas,” he said. Some forecasts say that the lifespan of Guyana’s oil sector ranges from 50 to 100 years, taking into consideration new discoveries and ongoing exploration.

If the Guyana government borrows less and can fund its projects from earnings, Mr Jagdeo said there would be more space for the private sector to borrow from domestic banks. He said that would likely lead to a reduction in interest rates.

The opposition People’s National Congress Reform-led A Partnership for National Unity, Alliance For Change and the Working People’s Alliance have repeatedly criticised the government for investing too heavily in infrastructure rather than spending more on human development by increasing wages and salaries, pensions, small business development, and devising strategies to stem the brain drain of nurses and teachers.