Budget success evasive without robust institutions, evaluation systems- Finance Minister

Jun 28, 2018 News

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By Kiana Wilburg
Finance Minister, Winston Jordan, recently noted that when the resource envelope of any national budget is supported by robust institutional structures, effective management systems, and competent leadership, then the chances of successful budget implementation are quite high.
Jordan said, however, that when any one of, or a combination of, those and other elements break down, success becomes evasive. He said that this is in spite of the fact that expenditure may have occurred.
The economist made this point at the opening of the Finance Ministry’s first 2019 Budget Sensitization and Training Programme last week.
There, the Finance Minister said that the start of the National Budget Cycle is an important milestone in the financial calendar. He noted that Budget 2019 represents the fifth and penultimate budget of this administration’s first term in office; and the third consecutive year that it will be presented to the National Assembly ahead of the start of the financial year.
The Finance Minister said it is therefore an opportune time for all financial officers to take stock of the results that they have achieved – or not achieved – and to redouble efforts to deliver goods and services of a sufficient quantity, quality and timeliness.
Jordan said, “Many of you have been at the helm of your sectors for several years and, therefore, are in a good position to critically and searchingly examine from whence you came, where you are, and where you are going. As you pause to reflect, let me remind everyone that a national budget is the single most important planning tool in the armory of the Government.”
He continued, “It is a living and dynamic document that gives life to the national and sectoral visions and policies. Most importantly, it is the vehicle through which we implement programmes and achieve national results.
As Heads of Budget Agencies, you must pay keen attention to ensuring that these elements are all in place in your respective sectors, regions and agencies.”
The economist added, “The Government commits to making resources available, subject to the fiscal space, for you to pursue workable solutions. Please bear in mind, that expenditure pressures such as those demanded by, for example, our commitment to improving wages and salaries and national security; bridging the divide between the hinterland and the coastland; and narrowing the infrastructure gap, on the one hand, and revenue pressures to lower taxes and tariffs will continue to impose premiums on planning, programming and pro-active performance.”
Since 2015, Jordan said that the Government and its support team have proven that they are up to the task, that they are prepared to implement measures that will benefit a broad cross section of the population.
The Finance Minister said that the government has consistently improved wages and salaries; undertaken sweeping tax reforms to improve tax administration and brought greater equity to the tax system.
“We have delivered early National Budgets for 2017 and 2018, to ensure that Heads of Budget Agencies had the entire financial year to implement work programmes – a stark departure from what obtained previously, when budgets were presented as late as end-March and approved in mid-April, thereby implying a two-month turnaround before the next budget cycle began in early July.”
Jordan continued, “Procurement of public goods and services has undergone changes: thresholds have been increased; several training courses in monitoring and evaluation, and supply procurement have been executed –all with the aim of ensuring an environment that contributes to improved performance in the public service.”
He added, “More recently, we have developed a public-private partnership framework to enable more creative financing approaches, to overcome loss of concessional financing, occasioned by our elevated status of Upper Middle Income Country, as classified by the World Bank.”
Further to this, the Finance Minister told several heads of budget agencies and Permanent Secretaries that spending money is easy. He stressed however that spending money wisely and prudently to effect results takes skill and effort. Jordan told his officers that it means understanding the problem and finding the solution that gives the result, then designing a plan and costing it in a way that delivers value for money, then spending the money.
The Finance Minister said, “Many times, we do the process the other way around: we spend money without understanding what the problem to be addressed is. The predictable result is the wastage of public resources that we are entrusted to spend. It is worth the time and effort – please ensure you secure the skills to understand the problems in your sector, devise solutions, plan for and cost the implementation of these solutions.”
The Finance Minister noted that additional revenue resources on the not so distant horizon present a wonderful opportunity for Guyana to transition from potential to the prosperity, of which many have so often dreamed. He stressed however that money alone has never solved a nation’s problems.

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