Gov’t dips into treasury for $92B more

Aug 04, 2023 News

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After passing biggest Budget ever…

Kaieteur News – Weeks after using its parliamentary majority to approve $31B in supplementary spending and on the back of its $781.9B 2023 budget-the biggest ever, the President Irfaan Ali Government was back at it again on Thursday- this time seeking a further $61B of extra-budgetary funds.

Finance Minister, Dr Ashni Singh on Thursday tabled Financial Paper 3, when the National Assembly convened at the Arthur Chung, Conference Centre, Liliendaal. Of the requested amount $10.1B is for current expenditures and $50B for capital works, the paper detailed.

In a quick reaction to the request by the government Shadow Housing and Water Minister, Annette Ferguson said on August 9, 2023, the Assembly will go into recess, until October 10, 2023. “This morning (Thursday) when I turned up, myself and colleagues were greeted with documents, including a Supplementary Paper,” Ferguson added. “Mind you this is the third Supplemental Paper for the year 2023; 3/2023, where the PPPC regime is seeking to get a total sum of $61,013,184,705 in addition to what the National Assembly approved in February 2023 for Budget of $781.9B with a further $26B approved by the National Assembly from the Low Carbon Credits for Infrastructural projects.”  Ferguson, a former Housing and Water Minister said it will now be $874B from February to August 2023.

“The PPPC regime will request for the Assembly to meet next week for the additional monies to be approved. Therefore, they are ending this session with a “Big Bang” before we head into recess on August 9, 2023.” Ferguson noted that the government is spending lavishly and lives of citizens have not improved. “With this $874B, the following remains: poor Infrastructure; poor quality of water through our taps; high cost of living; frequent blackouts; public servants yet to receive a decent increase in their salaries; poor health facilities.” Ferguson said Guyanese are in trouble, noting that this type of “lavish” spending is premised on: poor planning by the Regime and a lack competence. She called on Guyanese to wake up and ask, where “our oil monies going?”

This year’s Budget was approved to the tune of $781.9 billion. Following its passage, government approached the House in April for an additional $31 billion that was later approved in July. This means that the total Supplementary funds sought so far totals $92 billion. Once approved in Parliament, this year’s Budget would increase to approximately $873.9 billion.

Notably, last year’s Budget was approved to the tune of $552.9 billion. By the end of December 2022, the total fiscal plan was increased to approximately $643.7 billion, owing to the passage of two supplemental budgets. According to the Financial Paper seen by Kaieteur News, the disaggregated sum of $61,013,184,705 includes $10,181,998,722 and $50,831,185,983 for current and capital projects, respectively.

Through the Office of the Prime Minister, the administration is looking to secure an additional $5 billion to support the advancement of the transmission and distribution network for the Gas to Energy project. In this year’s Budget, the Prime Minister’s Office was already allocated $43.3 billion for the natural gas initiative.

Meanwhile, the Ministry of Public Works after receiving the highest budgetary allocation is set to receive a further $33 billion to support its development agenda. The Ministry has put in the largest request for additional funding totaling $33,376,457,184. The Public Works Ministry was awarded approximately $150 billion, the largest portion of this year’s Budget.

The Financial Paper detailed that the resources will be utilised for the Berbice Bridge Company; maintenance of roads; rehabilitation of pontoons and high span for the Demerara Habour Bridge and construction and rehabilitation of community and urban roads. It also noted that the resources will be put towards the construction of the Wismar Bridge in Linden; construction and rehabilitation of Hinterland roads; address emerging threats along the sea and river defences and facilitate emergency works to specific Stellings.

In a statement to the press, the Ministry of Finance said the supplemental funding supports “a range of developmental initiatives countrywide, including provision of additional resources for construction and rehabilitation of community, urban and hinterland roads, drainage and irrigation works, rehabilitation of health buildings and school-feeding programmes among many other areas.”

It noted that over $3 billion is being sought for the education sector to support the school feeding programme; the provision of grants to schools; the provision of additional resources to facilitate the completion of Good Hope Secondary School and for the acquisition of additional textbooks.

Under the Health Sector, $1 billion was sought for the rehabilitation and upgrade of health facilities countrywide. Additionally, the Prime Minister’s Office has requested a total of $927 million for the provision of more resources to support electricity companies in Linden and Lethem.

Meanwhile, under the Ministry of Agriculture, over $8 Billion was sought for drainage and irrigation works countrywide, with additional resources for the Guyana Sugar Corporation (GUYSUCO) to facilitate the rehabilitation of temporarily abandoned lands at Albion, Blairmont, Rose Hall, and Uitvlugt estates.

The Ministry of Home Affairs has also put in a request for some $400 million more to procure vehicles and boats to boost the operational effectiveness of the Guyana Police Force, and an additional $1 billion was sought for the upgrade of police stations, living quarters and other facilities along with furnishing and equipment. Further, under the Guyana Defence Force, $563 million was sought for the upgrade of infrastructure across several bases.

Only on July 20, 2023 the National Assembly approved Financial Papers Number One and Two for a $31 billion 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, utilising revenue earned through Guyana’s carbon credits deal with the Hess Corporation. 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.

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• Assembly, budget, funds, Parliament, Supplemental

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