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Georgetown, Guyana (Credible Sources) Former Minister of Finance Winston Jordan described Budget 2025 as a “hodgepodge” of measures lacking coherence and failing to address the long-term needs of Guyana’s economy. Appearing on Nation Watch with host Mervyn Williams, Jordan criticized the government’s approach to economic management, labeling the budget an election-year gimmick riddled with inefficiencies, misaligned priorities, and superficial solutions to deep-seated challenges.
Oil Wealth Mismanagement and Debt Concerns
Jordan expressed significant concerns about the management of Guyana’s oil wealth, arguing that the government’s withdrawal of $2.5 billion from the Natural Resource Fund (NRF) in 2025 leaves the country vulnerable to economic shocks. “They are spending as though the money will never run out,” he said, highlighting that oil revenue accounted for 91% of Guyana’s export earnings in 2024 and warning of a decline in global oil prices.
He accused the government of “raiding” the NRF by amending the law to allow near-total withdrawals, reducing transparency, and eliminating public oversight mechanisms. “This is no longer a savings account for future generations,” Jordan noted, describing the NRF as a “slush fund” for the government’s infrastructure-heavy agenda, which he claimed lacks economic diversification.
Adding to the problem, Jordan pointed out that Guyana’s national debt has ballooned to $6 billion, raising concerns about the sustainability of borrowing against uncertain future oil revenues. He questioned the wisdom of this strategy, especially in light of the government’s own projections of declining oil prices.
Contradictions in Infrastructure Spending
Jordan highlighted inefficiencies in the execution of public infrastructure projects, which accounted for the bulk of the 2025 budget. While the government allocated over $1 trillion for capital expenditure in 2024, only 40% of projects were reportedly completed by November, raising questions about the unspent funds. He noted that poor execution and corruption in the infrastructure sector—citing a report that up to 41% of capital spending is lost due to inefficiencies—undermine the intended benefits of these investments.
“What’s the point of boasting about the biggest budget every year if the money isn’t being spent effectively?” he asked, pointing to long delays and quality issues in major projects. Jordan also criticized the initiation of new infrastructure projects in an election year, calling it a politically motivated tactic rather than a genuine effort to address national development needs.
Sugar and Energy Sector Failures
Jordan dismissed claims of a resurgence in the sugar industry, pointing to a 21.8% contraction in sugar production in 2024, resulting in an estimated $18 billion loss for GuySuCo. Despite this, the government is projecting sugar output to double in 2025, which Jordan described as “impossible given the current state of the industry.” He accused the government of using sugar as a political tool, with little accountability for the billions in subsidies provided to GuySuCo.
On energy, Jordan highlighted contradictions in the government’s messaging, particularly its promise to halve electricity costs through the Gas-to-Energy Project while simultaneously removing VAT on backup generators. “If blackouts are ending and energy costs are falling, why are people still buying generators?” he asked, describing the measure as a tacit admission of the government’s failure to improve energy reliability.
Social Spending and Poverty Measures
Jordan was critical of the government’s handling of social welfare, particularly short-term cash grants, which he called “band-aid solutions.” He emphasized that poverty reduction requires structural reforms, including better education, healthcare, and job creation, rather than ad hoc payouts.
The National Insurance Scheme (NIS) was a major point of contention. Jordan accused the government of politicizing the NIS and neglecting its legal obligations to replenish the fund. He called for immediate reforms, including a class-action lawsuit to recover unpaid pensions and ensure fair treatment for retirees.
Jordan also criticized the government’s introduction of a $100,000 “baby grant,” arguing that it lacked long-term planning. “What happens to these children after the grant runs out?” he asked, urging the government to adopt a comprehensive social safety net to address persistent poverty, which affects 48% of the population.
Calls for Transparency and Accountability
Throughout the discussion, Jordan repeatedly called for greater transparency and accountability in government spending. He highlighted the lack of detailed reporting on how oil revenues are being used and the absence of feasibility studies for many large-scale projects. “Where is the plan? Where is the vision?” he asked, urging the government to focus on policies that deliver long-term benefits rather than short-term political gains.
A Farewell Budget?
Jordan characterized Budget 2025 as a politically motivated “farewell budget” designed to curry favor with voters ahead of elections. “This is not a budget for development; it’s a budget for campaigning,” he said, warning that the government’s approach risks leaving the country indebted and unprepared for future challenges.
