Vice President Dr Bharrat Jagdeo Debunks Claim on NRF Interest Revenues Funding Higher Salary Increases
Vice President, Dr Bharrat Jagdeo, has dismissed the opposition’s assertion that a potential APNU-AFC government could finance higher salary increases for citizens using the interest earned from the Natural Resource Fund (NRF).
Dr Jagdeo refuted this argument during a press conference held at the Office of the President on Thursday. The opposition’s economic advisor had proposed that the interest accrued from the NRF could cover the cost of a salary increase higher than the 6.5 percent granted to public servants in 2023.
To support his claim, Dr Jagdeo provided detailed figures, stating, So, if you invest that US$270 million, you would get just over US$13 million in interest, which is about GY$2.7 billion.
However, Dr Jagdeo pointed out that even with the total amount available in the NRF, the interest earned would still fall short of meeting the required funds to pay public servants. He emphasized that the government’s implementation of a 6.5 percent salary increase amounted to GY$7.9 billion.
The interest on the NRF would only give you GY$2.7 billion, Dr Jagdeo clarified. Yet, [opposition member indicated] today that they would fund a higher increase from the interest alone on the NRF. This is the sort of policy we can expect from APNU AFC, just wild rhetoric.
Dr Jagdeo also underscored the purpose of the NRF, explaining that it was not designed to use every cent earned from interest. He highlighted the safeguarding measures implemented in the restructuring of the NRF, which aimed to prevent corruption. Furthermore, Dr Jagdeo emphasized that all expenditures from oil money must be debated and appropriated in parliament.
The Vice President further criticized the opposition’s policy approach, asserting that their philosophy had previously led Guyana into significant debt and hindered opportunities for development in crucial sectors such as healthcare and education.
In 2021, the government amended the NRF Act to enhance transparency and accountability in the management of Guyana’s oil resources. As part of this, annual parliamentary approval is now required for withdrawals from the NRF, ensuring proper oversight.
Under this provision, US$1.002 billion (equivalent to G$208.9 billion) was approved to be withdrawn from the NRF in 2023, as part of the budget process. The government recently made its final transfer of US$152.1 million (equivalent to G$31.6 billion) from the NRF to the Consolidated Fund on December 27, 2023, reaching the total of US$1.002 billion (equivalent to G$208.4 billion) in approved withdrawals for the year.
Dr Jagdeo’s remarks serve as a response to the opposition’s claim and shed light on the limitations of using NRF interest revenues to finance higher salary increases. As the political landscape evolves, the issue of salary increases remains a significant consideration for citizens and policymakers alike.
