GuyOil and GPL fuel $149.7B public enterprise spending surge

(Kaieteur News) – Public enterprises plunged into a $3.2 billion deficit at the end of the first half of 2026 as expenditure surged by 53.5 percent to $149.7 billion, outpacing receipts despite a similarly sharp 53.2 percent increase to $146.5 billion. The Ministry of Finance, in its mid-year report, attributed the spending explosion largely to Guyana Oil Company Limited (Guyoil), which faced higher fuel acquisition costs, and Guyana Power and Light Inc. (GPL), which spent more to meet rapidly rising electricity demand and expanded its transmission and distribution programme. The Government is projecting that the public enterprise sector will end the year with an even larger $17.1 billion deficit.

According to the report, GPL expenditure grew due to the cost of generating adequate power to meet rapidly growing demand, along with a $24.7 billion growth in its capital programme over the same period in 2025 due to expanded transmission and distribution work. Total receipts increased by 53.2 percent, from $95.6 billion in the first half of 2025 to $146.5 billion in the first half of 2026, with the National Insurance Scheme (NIS) recording a $2.5 billion increase in contributions. Additionally, transfers from Central Government grew by $33.2 billion in the first half of last year to $53.6 billion.

Additionally, the report stated that total Central Government expenditure increased by 11.5 percent to $599.8 billion in the first half of 2026. Non-interest current expenditure increased by 19.7 percent to $337.2 billion in the first half of 2026. Employment costs amounted to $77.8 billion, an increase of 18.8 percent over the half-year position in 2025, primarily reflecting the full-year impact of the 8 percent salary increase granted in July 2025 to all central government employees, according to the report. Additionally, the report stated that the ministries and regions expanded staffing through the recruitment of personnel to support service delivery in key sectors, including education, health, and public safety and security.