The budget and debates have become a sham

Feb 21, 2010 AFC Column, Features / Columnists

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The days when the government’s annual budget presentation to the National Assembly would cause high expectation are gone.
The people’s eyes have been opened to the sham that the annual budget and the parliamentary debates have become.
This feeling, I believe, developed because people see no connection between what is painted in the Finance Minister’s budget speech, the budgetary allocations, and the amelioration of their myriad problems.
For several years now the budget has consistently failed to address the hopelessness of the thousands of Guyanese who are without jobs and the thousands more who are with insufficient disposable income for a decent livelihood.
Meanwhile, the foreign and domestic debts keep mounting at a time when local and foreign investments are dwindling.

Missing the Boat
People are aware, also, of the favoured treatment being given to PPP/C supporters through construction contracts and consultancies in the execution of fiscal allocations and capital projects, which contribute significantly to Guyana earning the international reputation of being one of the most corrupt countries in the world.
This is what the world renowned Economist Intelligence Unit has to say about Guyana and what it predicts for the country in 2010/2011:-
“Guyana’s score for corruption has deteriorated since 1995 as cases of nepotism, bribes and opaque public financing deals have remained commonplace despite repeated government commitments to crack down. Unemployment, corruption and personal security risks reduce Guyana’s rank”…
“High levels of unemployment and crime bring down Guyana’s overall score. Poor economic management has led to weak GDP growth, ensuring that unemployment has remained in the double-digits since the 1980s despite one of the highest rates of outward migration in the world. A transshipment point for illegal narcotics heading to the US and Europe from South America, drug cartel activity in Guyana is a threat to the quality of life.”
It is this reality that moves the citizenry to be generally cynical about the annual budget pantomime, especially in view of shoddy and excessively costly construction works that don’t deliver value for money.
The fact that it has been nine years since government cannot find the decency to establish the Public Procurement Commission intended to curtail pervasive corruption is testimony to the absence of the political will to tackle corruption in the country.
For our budgets to deliver, effectively and efficiently, on the kinds of development and economic aspirations of our people, the process would need to be changed, since it lacks salient features related to the spirit of our Constitution – in the context of inclusionary governance and the meaningful oversight role envisaged for the National Assembly.

How Canada, a Commonwealth Country, does It
In keeping with studies that cite a correlation between economic development and more democracy, I propose looking at Canada, a Commonwealth nation, to enlighten how they approach their budget process, then explain what I propose be adopted here in Guyana to make our budgetary process responsive to the needs of our people.
In Canada, during the 3rd quarter of each year, Cabinet considers the broad elements of the upcoming budget based on reports on public issues and concerns, the economic and political climate and a review of government’s priorities. Then from September through December the following applies.
The Department of Finance – with assistance from other central agencies – prepares the budget consultation papers for release in October to the Parliamentary Standing Committee, Provincial Finance Ministries, the general public and other stakeholders.Based on the resultant recommendations of these consultations, a budget strategy is devised and a decision taken by Cabinet on it.
Between January and March of the following year:-
· The Finance Minister, in conjunction with the Prime Minister, reviews the strategy, targets, etc and the budget is prepared along the lines of the new fiscal targets and spending initiatives they decide on.
· Thereafter in the next quarter, the Finance Minister delivers the Budget Speech followed by the tabling of the estimates which are automatically referred to the Standing Committees of the Canadian House of Commons.
· The Standing Committees then call upon Ministers, senior officials, and other interested parties to appear before them. To assist in this oversight process the Parliamentary Committees would usually have access to available plans, reports on those plans, department performance reports and priorities for the various departments. By May 31 the Committees report back to the House when the budget is debated and approved.
In contrast, the government of Guyana alone compiles the budget which the Finance Minister presents to the National Assembly as a fait accompli. At this stage no accommodation could be made for anything proposed by Members of Parliament. Since taking up the position of Finance Minister, Mr. Ashni Singh has abandoned even the cursory process of consultation that used to be done with various interests groups in the country.

Ending the Charade
To correct our one-sided ineffective budgetary system, it is my opinion that there should be an ex ante review of the budget with the Standing Committee for Economic Services (SCES) playing a major role.
I propose that the SCES be given an advance paper, compiled by Cabinet, containing the main features of the budget; be allowed to deliberate on the matter utilizing all the rights and privileges usually accorded such parliamentary Committees by inviting to appear before them Ministers, ministries’ officials, Regional Chairpersons and their officials and others outside the ambit of the government.
Thereafter, I propose that the SCES should send a budget summary report formally back to the government for the preparation of the budget estimates.
Subsequently, I envisage that the SCES should once again consider the Finance Minister’s presentation and render a report which will be sent to the National Assembly prior to the commencement of the debate and consideration of the budgetary estimates.

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