HGP Nightly News – Guyana’s public enterprises recorded a G$3.2 billion deficit in the first six months of 2026, with the Government now projecting that the sector’s shortfall could balloon to G$17.1 billion by the end of the year.
The figures are contained in the Ministry of Finance’s mid-year report, which shows public enterprise spending rising sharply as GuyOil and Guyana Power and Light (GPL) faced mounting costs.
Expenditure across the public enterprise sector jumped by 53.5 percent to G$149.7 billion during the first half of the year, narrowly outpacing receipts, which climbed 53.2 percent to G$146.5 billion.
The Ministry attributed much of the spending increase to GuyOil’s higher fuel acquisition costs and GPL’s growing expenditure to meet rising electricity demand and expand its transmission and distribution network.
GPL’s spending was also boosted by a G$24.7 billion increase in its capital programme compared with the first half of 2025, as work expanded on transmission and distribution infrastructure.
While the sector ended the first half in deficit, its receipts also recorded a substantial increase.
The National Insurance Scheme recorded a G$2.5 billion increase in contributions, while transfers from Central Government rose from G$33.2 billion in the first half of 2025 to G$53.6 billion this year.
The wider public spending picture also shows government expenditure continuing to climb.
Central Government expenditure increased by 11.5 percent to G$599.8 billion during the first half of 2026, while non-interest current expenditure rose 19.7 percent to G$337.2 billion.
Employment costs reached G$77.8 billion, up 18.8 percent from the comparable period in 2025. The Finance Ministry attributed the increase primarily to the full-year impact of the eight percent salary increase granted to central government employees in July 2025, along with additional recruitment in areas including education, health and public safety.
Government also spent G$107.3 billion on other goods and services during the period.
The G$100,000 cash grant programme accounted for G$42.5 billion of that spending, while materials and supplies consumed another G$16.6 billion, driven largely by increased expenditure on drugs and medical supplies.
A further G$8.9 billion went towards maintenance of buildings and infrastructure.
Transfer payments also increased by 18.2 percent to G$152.1 billion, reflecting higher social assistance and education-related support.
Old age pension increased from G$41,000 to G$46,000 per month, while public assistance rose from G$22,000 to G$25,000.
Around 206,000 students are also benefiting from a package that includes the G$60,000 Because We Care grant, a G$5,000 uniform voucher and a new G$20,000 annual transportation grant, bringing the total support per student to G$85,000.
The Government has revised projected non-interest current expenditure for 2026 upward from G$705.1 billion to G$709.8 billion.
Meanwhile, expenditure under the Public Sector Investment Programme stood at G$248.9 billion at the end of June, compared with G$247 billion during the same period last year.
The domestic-funded portfolio accounted for G$223.4 billion, an increase of G$8.4 billion, while G$25.5 billion was spent on foreign-funded projects.
The total 2026 PSIP allocation has now been revised upward to G$829.7 billion from G$779.6 billion, with additional investment earmarked for power generation and distribution, housing and public infrastructure.
The mid-year figures therefore show a public sector spending picture being driven by both rising operating costs and expanded government programmes — with the public enterprise deficit projected to widen substantially before the year is over.
