G$31B supplementary budget passed

Jul 23, 2023 News

Kaieteur News – The National Assembly on Thursday passed a G$31B Supplementary budget.

The sum includes $4.7 billion that will be directly allocated to 242 Indigenous communities and $26.5 billion for climate adaptation measures that were earned through Guyana’s carbon credits deal with the Hess Corporation.

Senior Minister with the Responsibility for Finance, Dr. Ashni Singh

The Supplementary Appropriation Bill, comprising Financial Papers Number 1 and 2 of 2023, was first presented on April 24 last during the 63rd Sitting of the National Assembly, and allocates US$150 million in revenues from carbon credits towards two critical priorities under the Low Carbon Development Strategy (LCDS).

This significant step follows the recent payment of US$37.5 million from the Hess Corporation for carbon credits, bringing the total payments received to date to US$150 million, the highest revenue stream of its kind in the world.

Senior Minister with the Responsibility for Finance, Dr Ashni Singh explained that as outlined in the Bill, the allocated revenues will be directed towards two major priorities of the LCDS.

In line with the LCDS objectives, 15% of the revenues are being dedicated to bottom-up investments through community plans outlined in village sustainability plans.

Ahead of the approval, the main opposition – A Partnership for National Unity + Alliance For Change (APNU+AFC) Opposition Member of Parliament, Volda Lawrence – grilled the Government on the timing of the request. The request comes just three months after the budget was passed.

Lawrence noted that there are strict rules governing the removal of funds from the Contingency Fund. She pointed out that the Fiscal Management and Accountability Act of 2003, only permits the use of funds from the Contingency Fund in the case of an emergency or unforeseen circumstance.

“And here it is, you are coming to the House, six weeks after the budget and you are asking us, to approve in this House, an allocation of $4.7B, which is 175% greater than the allocation that we gave to you in the budget,” MP Lawrence said, while asking the Indigenous Minister to state the unforeseen circumstances that led to the request.

In response, Indigenous Affairs Minister, Pauline Sukhai noted the money is being transferred directly to indigenous villages.

“This has never happened before, and therefore, I want to say, that I do not expect from the other side any objections to additional financial resources for the investment and the improvement of the lives of the Indigenous people of this country that we would have an issue. And, therefore, I want to say that it is a legitimate and much-needed transfer,” Minister Sukhai said.

Sukhai challenged the Opposition to tell the Committee that the development of Indigenous People was not an emergency.

That issue aside, the Amerindian Affairs Minister told the Committee that a number of the villages have already received their funds. The population size of the villages determined the amount received.

But Lawrence noted that the issue is about accountability.

“On this side of the House, the issue is not spending sums of money on our people whether they are indigenous or not, it is about accountability, it is about transparency,” Lawrence said.

Meanwhile, the Finance Minister explained that the $26.5B represents 85% of earnings from the sale of carbon credits, and will be used for climate adaptation and mitigation interventions outlined in LCDS 2030.

He explained further that administrative systems had to be put in place to facilitate the receipt of the funds.

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budget, Dr. Ashni Singh, finance, Hess Corporation, supplementary

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