Déjà vu as Budget cuts loom…Opposition contemplates new strategy to counter court ruling

Apr 06, 2014 News

Within days, the National Assembly is set to start considerations of the actual estimates as proposed by Government for the country’s 2014 National Budget.

Finance Minister,
Dr. Ashni Singh

It is likely that once again, based on the statements and what transpired in the last two years, that the Opposition will be making amendments to the allocations for a number of entities and projects.
Members of Parliament (MPs) from A Partnership For National Unity (APNU) and the Alliance For Change (AFC), the Opposition which together controls a one-seat majority, have been clashing with the Government side since the first budget under the 10th Parliament, in 2012.
The Opposition has been insisting that the mere fact that the budget has to be taken to the National Assembly for approval is a clear assumption that cuts can be made.
However, the Government is insisting that the National Assembly does not have the powers to do so.
The matter ended up in the courts with Chief Justice (Ag) Ian Chang in January ruling that the Opposition, under the Constitution, does not have the power to cut the Government’s Budget.
The ruling has raised questions and brought on a collision course the two separate pillars of the Government…the Legislature and Executive…and their independent functions.
According to Chang, to cut the Budget is a “final act” that leaves no space for amending the Budget estimates. He explained that there is therefore nothing left for the Government’s Finance Minister to amend.
The ruling, which is being appealed, said that the Constitution provides for the Finance Minister to present the Budget since the finance of the country is the responsibility of the Executive. For the Opposition to cut the Budget and then approve it would mean that the estimates are no longer that of the Finance Minister, but that of the Assembly.
Chief Justice Chang argued that “if the Assembly were permitted to cut the Minister’s estimates, the estimates, when cut, would necessarily become the estimates as fixed and determined by the Assembly and would cease being the Minister’s estimates.”
“If the Assembly has the power to cut the estimates in relation to one line item, then, as a matter of principle, it would have the power to cut each and every line item. Assuming that the estimates in relation to each and every line item were to be cut to $1, it can hardly be said that the estimates as cut remain the estimates of the Minister.”
The CJ had also ruled that the Speaker of the House is mandated to ensure that the standing order of the National Assembly, which governs how that legislative body operates, confirms with the Constitution.

AFC’s Leader,
Khemraj Ramjattan

However, officials of both Opposition parties are intent on making cuts again this year.
While both APNU and AFC declined yesterday to officially indicate what strategies will be used, Kaieteur News was told that the ruling can be seen in a number of ways.
“In layman words, the Speaker, Raphael Trotman, can very well look to ignore the ruling of the Chief Justice and allow similar actions like the last two occasions to amend the Budget.”
Another option for the Opposition parties would be to not approve specific allocations when it comes up for voting at the Committee of Supply stage, where the actual estimates are voted on.
If that happens, it will leave the way open for the Finance Minister to adjust the particular allocation and have it brought back.
Last year, Government had reinstated millions cut from the National Communications Network and Government Information Agency (GINA), two state-owned media agencies.
Monies cut from the US$150M expansion project at the Cheddi Jagan International Airport (CJIA) were also reinstated.
According to a senior AFC official yesterday, the better option for the Opposition will be to vote against an entire allocation and give the Minister the option of bringing it back again.
“The reality is that Government when it had control of the National Assembly spent taxpayers’ dollars like it was their own piggybank. As representatives of the people, we are mandated to ensure that the situation does not continue. We have a responsibility and if the Government does not see that they too have a responsibility and talk to us, then we have reached a sad stage in the history of the country.”
The official made it clear that the Government has continued to fail in releasing details on how monies are being spent.
Kaieteur News was told that almost definitely facing the knife is the $81M for NCN and $139M for GINA.
Monies for the CJIA expansion project, to the tune of $6.5M, as well for the Amaila Falls Hydro-project access roads, $1.3B, are also being looked at by the Opposition.

APNU’s Leader,
David Granger

“We have been asking for details on the spending in the Guyana Sugar Corporation but there is very little telling the people of this country why we are approving billions every year and nothing to show for it.”
According to the Opposition members, there will be cases when other projects will be affected by the “amendments”.
“Last year when we amended the CJIA monies, the hinterland airstrips were also affected. We left the door open for the allocation to be brought back as a supplementary budget.”
Whatever plays out this week, the passage of the Budget will test the mettle of the National Assembly once again.