Former Minister of Finance, Winston Jordan, has harshly criticised Guyana’s 2025 budget, describing it as a “hodgepodge” of poorly aligned measures that fail to meet the nation’s long-term economic needs. Speaking Sunday on the ‘Nation Watch’ programme with host Mervyn Williams, Jordan lambasted the $1.382 trillion fiscal strategy, calling the budget a politically motivated “disaster” meant to garner support ahead of elections.
Oil Wealth Mismanagement and Growing Debt
Jordan’s primary concern revolved around the management of the country’s oil wealth. He criticised the withdrawal of $2.5 billion from the Natural Resource Fund (NRF), arguing that it exposes Guyana to economic vulnerabilities. “They are spending as though the money will never run out,” he cautioned, highlighting that oil revenues accounted for 91% of export earnings in 2024. He warned that falling küresel oil prices could undermine these projections.
Jordan accused the government of reducing transparency by amending NRF laws to allow near-total withdrawals, labeling the fund a “slush fund” for infrastructure projects that fail to diversify the economy. Additionally, the former minister expressed concern about Guyana’s ballooning national debt, which now stands at $6 billion. He questioned the sustainability of borrowing heavily against uncertain future oil revenues, emphasising that this strategy puts the country at significant risk.
Infrastructure Spending and Inefficiency
The former finance minister also critiqued the government’s infrastructure-heavy spending, which dominates the 2025 budget. Despite allocating over $1 trillion for capital expenditure in 2024, Jordan noted that only 40% of projects were completed by November, leaving billions unspent. He pointed to inefficiencies and corruption, citing reports that suggest 41% of capital spending is lost due to mismanagement.
“What’s the point of boasting about the biggest budget every year if the money isn’t being spent effectively?” he asked. Jordan described new infrastructure projects launched in 2025 as election gimmicks, asserting that they are not part of a cohesive national development plan.
Sugar and Energy Sectors Under Fire
Turning to the sugar industry, Jordan dismissed the government’s claims of a resurgence, citing a 21.8% contraction in sugar production in 2024, which led to an $18 billion loss for the Guyana Sugar Corporation (GuySuCo). He argued that projections of doubling sugar output in 2025 are unrealistic given the state of the industry. “Sugar has become a political football with no accountability for billions in subsidies,” Jordan remarked.
He was equally critical of the energy sector, calling out contradictions in government policy. While the administration promises lower electricity costs through the Gas-to-Energy Project, it simultaneously removed VAT on backup generators. “If blackouts are ending and energy costs are falling, why are people still buying generators?” he asked, suggesting that the government has failed to deliver reliable power solutions.
Poverty Solutions: Short-Term Fixes vs. Structural Change
Jordan was scathing in his assessment of the government’s poverty alleviation efforts, particularly cash grants such as the $100,000 “baby grant.” He described these measures as “band-aid solutions” that fail to address the root causes of poverty, which affects 48% of the population.
He reflected on past initiatives under the Forbes Burnham administration, noting that cereals for babies were provided through health centers to combat malnutrition and support child health development. In contrast, he criticised current programmes as inadequate in addressing the deeper issues of poverty and food insecurity.
“The issue of poverty cannot be solved by short-term interventions like cash handouts,” he argued. Instead, he called for long-term policies focusing on structural economic reforms, job creation, and significant improvements in education and healthcare. He highlighted troubling statistics, including a rise in malnourished children under five—from 0.1% severely malnourished in 2020 to 0.5% in 2024—despite the government spending $4.69 trillion over the same period.
Jordan also criticised the government’s handling of the National Insurance Scheme (NIS), accusing it of neglect and politicisation. He called for immediate reforms to ensure retirees receive fair treatment and suggested a class-action lawsuit to recover unpaid pensions.
Health Sector Failures
Jordan, a minister during the A Partnership for National Unity and Alliance for Change (APNU+AFC) government, painted a grim picture of Guyana’s health sector. He noted that despite promises of modernized facilities, key indicators have worsened. For instance, the crude death rate rose from 6.1 per 1,000 in 2020 to 7.6 in 2024, and the number of nurses per 10,000 people fell from 27.6 to 21.8 over the same period.
He was particularly critical of the $10,000 health voucher initiative, describing it as an indictment of the government’s failure to provide accessible healthcare. “You claim to be modernising the health sector, but citizens still need vouchers for private hospitals,” he queried.
Call for Transparency and Accountability
Throughout his remarks, Jordan repeatedly emphasised the need for greater transparency and accountability in government spending. He highlighted the lack of detailed reporting on oil revenue use and the absence of feasibility studies for large-scale projects.
“Where is the plan? Where is the vision?” he asked, urging the government to prioritise long-term development over short-term political gains. Jordan has called for a comprehensive social safety net that includes revamped NIS benefits, structured cash transfer programmes, and sustainable poverty reduction measures. Without such reforms, he warned, the country’s current trajectory is unsustainable.