Dear Editor,
Our nation currently has US$3.5 billion in the Natural Resource Fund (NRF). If these funds were grown by approximately 11% (US stock market average rate of return for the last 10 years) in 2026 and then by 6% in the following year with the principal increasing by the same amount as it did in 2025, the Natural Resource Fund would earn enough to pay an annual $100,000 cash grant to each Guyanese citizen regardless of their age. A strong argument for why the principal within the NRF should remain untouched. This amount will continue to grow as more oil is sold and the funds reinvested. Thus, making the required rate of return to pay for an annual cash grant less over time even with the current growth rate of the population.
The upcoming budget must consider such a conservative fiscal approach to the management of the NRF. Use of the money within the fund should only be for investment to ensure the issuance of annual cash grants and the growth of the NRF for the long-term fiscal strength of our nation. As for the funding of government expenditure, this should be restricted by a bipartisan commitment to a balanced budget where the revenue from non-oil sectors and low taxation is used to pay for essential productive public assets. Thus, bringing about job creation, generating strong economic growth, and providing the benefits of the economic multiplier effect. This will also help reduce our national debt and help our government avoid many of the pitfalls being seen today in the projects being undertaken.
CRG recommends such a balanced approach to the fiscal management of our economy. This approach will bring about poverty reduction and improved sustainable long term economic growth for our nation while also improving the standard of living for all Guyanese.