Court option to restore budget cuts not ruled out - President

Court option to restore budget cuts not ruled out – President

Apr 27, 2013 News

Government is prepared to go to court again to restore a $31.4B slashed from 2013 national budget, President Donald Ramotar said yesterday.
After almost a month of debates, the National Assembly on Wednesday evening passed an amended budget of $174B, down from the $208.8B originally proposed by Finance Minister, Dr. Ashni Singh.
Yesterday, the Head of State, during a press conference at the Office of the President, was puzzled that only the combined Opposition, which has a one-seat majority, seemed to be against the budget.
Immediately following the passage of the amended budget, the President convened a meeting with stakeholders who supported the budget in its entirety.

The recent parliamentary sitting.

The cuts do not “augur well” for the image of Guyana and will affect several investments designed to lift Guyana. Ramotar called on the Opposition to reverse its position as the options are very much likely going to the courts again.
Last year, a controversial ruling following a court case filed by government, saw the administration restoring almost $20B slashed from the National Budget.
The cuts will affect the Amaila Falls hydro project which is geared to reduce electricity costs and attract industries like processing, the official said.
He also bemoaned opportunities to A Partnership for National Unity (APNU) and the Alliance For Change (AFC) to have budget talks but were affected by one issue or the other.
The Opposition even supported the projects last year yet turned around and slashed them this time round. The projects included a Specialty Hospital in Turkeyen, the Cheddi Jagan International Airport and several interior airstrips, he noted.
Regarding the Specialty Hospital which is being funded by a US$19M loan from India, the President was convinced it is an important project to lift the quality of health care in Guyana as it will make complicated surgeries more affordable and even develop “health tourism” in Guyana. There is a large diaspora of Guyanese who are without health insurance and serve as potential clients.
The US$150M CJIA expansion is another excellent project that can open up Guyana as a hub between the north and south hemisphere because of the country’s strategic location.
Regarding the interior airstrips, Ramotar was puzzled over the cuts as these serve as critical links to remote communities and reducing the budget will have implications for businesses and issues like emergency evacuations.
On Wednesday evening $19B was cut from the allocation for the Low Carbon Development Strategy. The opposition argued that the money has not yet been approved by the Inter-American Development Bank, but once it is approved, the government can return to the National Assembly and ask for approval.
The second largest cut was $5.6 billion under the Ministry of Public Works. The Opposition had only intended to cut $5.3 billion for the expansion of the Cheddi Jagan International Airport expansion plan, citing lack of transparency. However, owing to a mistake, the Opposition had no choice but to cut funding for the airport expansion plan and other transport projects, including for hinterland airstrips, the Civil Aviation Authority and the Ogle Airport.
The third largest cut was $5.2 billion in subsidies for the Guyana Power and Light Incorporated. The other cuts were $1.25 billion for the Specialty Hospital on the grounds that there was a lack of transparency, and a total of $217.1 million from the Government Information Agency and the state-run TV and radio NCN, under the grounds that the entities were only pushing propaganda and shutting out Opposition voices.
The Opposition had argued that a budget that could have satisfied all could have been presented if the government was truly committed to consultation.
Yesterday, the President said he is fully committed to any process that will ensure Guyana’s development and will open the door to the Opposition for continuing talks.
Asked about the possibilities of the cuts being restored via the presentation of a supplementary budget, Ramotar found it strange that the Opposition would support any such measures…”Why cut it in the first place?” he asked.