Surinamese President Jennifer Simons has issued a stern warning against premature expenditure of anticipated oil and gas revenues, emphasizing that future energy earnings must not lead to fiscal complacency or irresponsible policymaking. Speaking at the New Year’s reception of the Association of Economists in Suriname on Thursday evening, the head of state positioned the oil revenue discussion within a broader macroeconomic context, noting that the country remains in a phase of fragile stability requiring continued focus on inflation control, purchasing power protection, and confidence restoration.
President Simons highlighted that international experience demonstrates nations rarely fail due to resource scarcity but frequently collapse through weak governance, inadequate accountability, and premature spending of future income streams. With structural oil revenues not expected until 2028, she cautioned against the dangers of anticipatory expenditure, stressing that hydrocarbon earnings actually increase governmental responsibility to maintain discipline, transparency, and sound management.
Central to the administration’s strategy is the establishment of a savings and stabilization fund, with legislation required to be finalized and operational by mid-2026. This fund will feature clear deposit and withdrawal rules, independent governance structures, and mandatory public reporting to government, parliament, and civil society. According to Simons, the mechanism must serve multiple functions: cushioning economic shocks, preventing overheating, and enabling long-term investments that enhance Suriname’s productive capacity.
The address also addressed the recent settlement of Value Recovery Instrument (VRI) obligations, which the government executed to prevent future oil revenues from being disproportionately taxed. Simons clarified this decision only remains justified if accompanied by sustained fiscal discipline and maximum transparency, with the breathing space obtained through refinancing dedicated to structural reforms rather than additional expenditure.
Crucially, the president emphasized that oil and gas revenues should not replace economic diversification efforts but rather facilitate reduced dependency on limited economic pillars. The government explicitly links hydrocarbon policy to investments in agriculture, agro-processing, tourism, industry, education, and healthcare. Local content policies will be legally embedded with clear participation targets and transparency requirements for contracts and decision-making.
Notably, Simons connected resource management directly to integrity and moral leadership, referencing recent concerns regarding state-owned enterprises and emphasizing that rules must apply universally without exceptions. She characterized economic choices as fundamentally moral decisions that determine family prosperity and intergenerational opportunity.
Looking toward 2028, the president designated 2026 as a critical preparatory year, with current choices determining whether oil revenues become a blessing for broad prosperity or a source of renewed vulnerability. The administration’s approach prioritizes saving where possible, investing where necessary, and assuming responsibility for future generations’ welfare.