Govt. clarifies Minister Bharrat’s comments on oil cash transfers

The Ministry of Natural Resources has issued a statement clarifying remarks made by Minister Vickram Bharrat regarding cash transfers from oil revenues, following what it described as a misleading report by Kaieteur News.

The September 30 edition of the newspaper carried a story headlined: “Oil cash handouts will leave Guyana poorer” – Minister Bharrat.

The headline sparked public debate, with some suggesting it implied the government would not provide cash grants at all and that the Minister’s comments on the topic was setting a foundation to justify this move.

However, on Tuesday, the Ministry stated that the new entity’s headline misrepresented the minister’s position and twisted his comments during a recent Starting Point podcast interview.

In his interview last week, Minister Bharrat said “It has been a failed model among countries around the world if that is the only way we intend to spend oil revenue. But Guyanese would have benefited already from direct cash transfers.”

He emphasized that cash transfers alone are not a sustainable approach.

The Ministry noted that the government has provided several cash grants in recent years, including payments to school children, parents of newborns, and other vulnerable groups, and that cash grants were also a part of the party’s election campaign promises.

Guyana’s broader strategy includes subsidies for social development and welfare, such as removing tertiary tuition fees, supporting parents with newborns, and providing grants for school uniforms and supplies.

The Ministry said Kaieteur News included the minister’s clarification in the second paragraph but still led with a “twisted line of reporting,” which it condemned as misleading and damaging to public understanding of the government’s fiscal strategy.

It was further reiterated that Minister Bharrat’s position that cash transfers are neither the only nor the most important method for sharing oil sector benefits, noting that dependence solely on cash transfers could harm productive sectors and is unsustainable given volatile markets and the finite nature of oil resources.

“Total dependence on cash transfers, and encouraging massive grants at this time, is a recipe for harm to our productive sectors,” the minister said.

The Ministry concluded by reaffirming its support for Minister Bharrat and the government’s broader approach to managing oil revenues for long-term development.