Proposed estimates for Constitutional agencies totaled more than $10B

Nov 19, 2017 News

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• Finance Minister justifies cuts to Parliament, Audit Office

By: Kiana Wilburg

Constitutional agencies are entitled to financial independence. But does this mean that any sum they request for their annual budget must be granted with blinders on?

If this were the case then the National Assembly would have approved on Friday, over $10B. That represents the sum of all the moneys requested by the 16 Constitutional agencies for 2018.

It was this logic that Minister of Finance, Winston Jordan invoked as the Committee of Supply considered the proposed current and capital estimates of Constitutional agencies.

The Finance Minister insisted that the requested sums of these agencies could not be approved as is, hence his recommended cuts.

Parliament Office was the first agency up for consideration. The Office proposed to have $1.7B approved to meet its expenses next year.

The Finance Minister recommended instead, the lump sum of $1.6B. The economist explained that the basis of this recommendation is rooted in the Government’s macroeconomic outlook for 2018, projections for revenue and borrowing as well as the sustainability of those factors.

The Minister also explained that the budget circular which gives these agencies guidance on how they should formulate their budgets was not adhered to. He said that there was an abject failure on the part of the constitutional agencies to recognize the Government’s constraints.

Opposition Chief Whip, Gail Teixeira, was the first to question Jordan on his reasons for cutting the proposed budget of the Parliament. She said that the problem before the House is that members are not aware of the “macroeconomic outlook” Jordan alluded to.

She said, “We don’t know what are the projections for revenue, projections for borrowing etc. We must have a fiscal framework within which the Minister is deciding who gets what, otherwise it becomes capricious. …could the minister indicate to this House what the projections he is speaking of are? This is necessary so we can adjudicate whether his cut is justified or not.”

The Finance Minister said that the “mysteries” surrounding his macroeconomic outlook will be revealed in a matter of 10 days, which is when Budget 2018 will be presented to the House. The Minister noted that based on the nation’s financial laws, he is simply required to provide his proposed lump sum for the Constitutional agency.

In submitting such a recommendation, Jordan said he satisfied both the letter and spirit of the law.

Discontented with Jordan’s response Teixeira called for the House to postpone the debate on the current and capital estimates of the Constitutional Agencies. She insisted that Parliament’s $1.7B budget should be approved. Her call was seconded by Opposition Member, Anil Nandlall but it yielded no fruitful results.

In spite of the Opposition’s questioning and antics, the amended sum of $1.6B for Parliament Office was put to a vote and approved.

AUDIT OFFICE

The Office of the Auditor General requested $844M. The Finance Minister recommended instead $783M while reiterating the constraints facing the government at this time.

Once again, Teixeira called for Jordan to explain his constraints and macroeconomic outlook for 2018. She also called on the Finance Minister to shed more light on his statement that the Constitutional agencies did not follow the budget circular.

The Finance Minister noted that in the last two years, the implementation rate for projects for some agencies was below projections. In spite of the Minister’s explanation, Members of the Opposition remained dissatisfied.

NAGAMOTOO EXPLODES

At his wit’s end, Prime Minister and Leader of the House, Moses Nagamootoo took to the floor. The First Vice President reminded that both sides of the House agreed that the estimates of the Constitutional agencies would be considered within five hours.

But after close to two hours on just two agencies—The Parliament Office and the Audit Office—Nagamootoo was convinced that the Opposition intended to frustrate the process.

Nagamootoo reminded that it was the APNU+AFC coalition which fought for the financial independence of the Constitutional agencies in the face of persistent opposition from the People’s Progressive Party.

He also noted that Article 222 of the Constitution offers an overarching protection of the independence of the Constitutional agencies.

The First Vice President said, “It was (the PPP) who refused to guarantee the independence of the National Assembly, the independence of the Judiciary and the independence of the Elections Commission so they could manipulate them using finance as a weapon of control…”

Nagamootoo continued, “They are speaking with forked tongues here in this House when they come to defend those Constitutional agencies. What a day of shame that those people who stabbed the Constitutional agencies in the back and those who cut the throats of the Constitutional agencies can set themselves up here today.”

The Prime Minister added, “I speak passionately on this issue because I have seen the various attempts by members of the House to frustrate the consideration of these estimates…”

Nagamootoo said that the House should move on with the recommended estimates of the Finance Minister and put the Opposition’s tactic to an end.

The Committee of Supply subsequently approved the amended $783M budget for the Audit office.

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