Dear Editor,
I fully endorse the sentiments expressed by one of the WIN Party leaders, Mr. Charles Sugrim in yesterday’s edition of Kiskadee Watch captioned “Reckless borrowing by Guyana gov’t will see our oil wealth pledged away to banks, other creditors”. I wish to add further evidence found in the Ministry of Finance’s Mid-Year Report 2026.
The fiscal deterioration is worse than projected
Mr. Sugrim correctly notes that the Overall Deficit After Grants deteriorated from negative $35 billion in HY 2025 to negative $105 billion in HY 2026. The picture is worse when examining the Non-Financial Public Sector deficit of $108.9 billion, which includes public enterprises. GPL and GuySuCo are leaders in the plunder of people’s money—spent on Turkish businessmen and big contractors now cutting canes. The small man gets very little.
The Natural Resource Fund is being depleted
The NRF received US$2,063.8 million in HY 2026 but withdrew US$1,020 million. The Report warns: “As additional projects are approved, and their development costs enter the cost bank, the profit-oil ratio will move again.” Yes—downwards! With four more oil projects awaiting approval, the next four years will bring economic hardship. That is President Irfaan Ali’s legacy – hardship on the poor people of Guyana.
Debt sustainability: The elephant in the room
Borrowing tripled between HY 2025 and HY 2026:
- Net external borrowing: $19 billion → $71 billion
- Net domestic borrowing: $16 billion → $35 billion
- Total Government Guaranteed debt: US$8.6 billion (end-June 2026), up from US$7.7 billion (end-2025)
The Report’s claim of a 28.6% debt-to-GDP ratio is deeply misleading. Oil accounts for 81.2% of GDP and is temporary. Strip out oil, and the debt-to-non-oil-GDP ratio exceeds 150%; worse than under President Jagdeo. This is not prudence; it is masking insolvency behind oil-inflated figures.
Interest payments rose by GUY$5 billion in HY 2026 to GUY$13.8 billion. At this pace, annual interest will exceed GUY$20 billion by year-end. This is our money flowing to lenders, not the citizens.
Agriculture: The silent crisis
Agriculture contracted by 0.5% in HY 2026; “other crops” fell 6.4%. This sector employs the largest share of Guyana’s population and could feed the oil boats but is failing at this essential task.
The Report blames rainfall. But after eight years of oil wealth, the government has failed to invest sensibly in drainage. It was Cheddi Jagan who dreamed of an effective MMA Scheme and Black Bush Polder Scheme. Under Zulfikar Mustapha and Irfaan Ali, that dream has been destroyed. Only $24.7 billion of $82 billion budgeted for drainage was spent; a 30% execution rate. Minister Mustapha’s performance is an “F” grade.
El Niño conditions are expected in H2 2026. The government’s response? “Shade houses” and “climate-smart planning.” This is a confession of unpreparedness. Another “F” Grade.
Labour shortages: A self-inflicted wound
The Report admits: “the binding constraint faced is no longer the creation of jobs, but the supply and composition of the skills available to fill them.” The government launched an $829.7 billion Public Sector Investment Programme with deficient human capacity, the programme’s main ingredient. This shows the Irfaan Ali Government has lost its competence to think; a far cry from the Jagdeo era when the State Planning Secretariat under Mr. Clyde Roopchand got more done with less through old-fashioned monitoring and evaluation. Who is monitoring this $829 billion? Ghost?
The result: contractors robbing the Government and getting away with this highway robbery because they have friends in Office of the President, project delays, cost overruns, and slow impact on people’s lives. Manpower studies are slated for H2 2026. This is more of the PPP boys and girls trying to close the gates after the programme has begun. This is backwards planning, a direct reflection of President Ali, a man with a Degree in Planning.
BIT trained only 706 persons; GOAL graduated 3,800. These numbers are microscopic. The government is building hospitals, roads, and bridges without training enough doctors, nurses, engineers, and technicians. The Cabinet and Permanent Secretaries are running around like headless chickens, reacting to crises rather than implementing a 10-year plan that is shared with the people.
Conclusion
The Mid-Year Report 2026 is a masterpiece of deception; impressive numbers masking a Ponzi Scheme. When it crumbles, only the poor will suffer since some of these senior government officials are now multi-billionaires and have generational wealth after six years in Office. Guyana is experiencing a classic resource curse: rapid GDP growth driven by oil, rising debt, declining agriculture, institutional bottlenecks, and opaque fiscal transfers.
The NRF is being depleted. The debt-to-non-oil-GDP ratio is alarming – 150%. Labour shortages are delaying projects. Agriculture is contracting. Inflation is hurting the poor.
Like everything in life, boom must be followed by bust, and our bust is here already. What is even worse, the PPP/C has no plan for it.
Finally, it is good to see the WIN Party as the main opposition writing on these policy defects. This must be continued to ensure the people know that there are people out there in the opposition who can understand the crisis and can create a plan to take the nation out of this economic crisis affecting the poor people of Guyana. This letter from Mr. Charles Sugrim warms my heart since it means that the opposition does have people who are thinking on the big issues.
Yours faithfully,
Surujdai Juglall
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