… warns budget agencies heads against wasteful spending

Heads of Budget Agencies in the public sector were on Thursday charged to remain steadfast in their efforts to strengthen the financial system and institutional structures to prevent waste. They were also encouraged to pursue more green initiatives in budget 2019 proposals.

The charge was given by Finance Minister, Winston Jordan at the opening of the first Budget Sensitisation Session for 2019 at the Arthur Chung Convention Centre. The programme is aimed at providing support to Heads of Budget agencies and their technical teams who hold responsibility for preparation/compilation of agency budget submissions.

GREEN STATE
Jordan told participants that the Green State Development Strategy offers a unique opportunity for the transformation of the sectors and the country as a whole, along a path of green economy principles. “I hope the budget submissions from your respective sectors will demonstrate green initiatives within the public sector, as well as support engagements with the private sector to boost the realisation of a green Guyana.”

Jordan alluded to the fact at his ministry increasingly have been issuing e-copies of circulars, invitations and notifications in an effort to reduce the use of paper. “We have changed our lighting fixtures to LED and, this year, the Ministry of Finance will be sending e-Christmas cards. We urge other agencies to jump on this bandwagon, in the process reducing cost and improving our green efforts, conscious of our environmental footprint.”

The minister said this is a very small, low hanging fruit readily available to be picked. “I anticipate that this would be the start of much more that will be done. I would expect, for example, that the Ministry of Business will consider funding start-ups for small businesses to support green initiatives; that our buildings would be incorporating building codes so that support structures that use less energy can be utilised; that we will employ sustainable agro processing practices, and that greater use of management information systems will be made to reduce travel costs and paperwork to name only a few.

“With our national development strategy and local content in focus, we must give effect to buying local, wherever possible, to support our agro-producers and local manufacturers.”
“This will contribute to reduced demand for imports, thereby saving foreign currency; improve local value added and growth; and increase national and household incomes and employment.”

He reiterated that he is alarmed and get visibly upset when he attends events across the country and is served imported water, “when we have at least half a dozen high quality local producers. Or when I am served a fruit bowl that includes: apples, grapes and imported melons when I would much prefer a juicy Buxton Spice mango, a Pomeroon pear, sapodilla, papaw, orange, cashew and watermelon.”

CUT THE WASTAGE
Meanwhile, touching on the issue of wasteful spending, Jordan told participants that President David Granger has repeatedly highlighted the need for cost-efficiency and results-based performance. He warned that additional revenue resources on the not-so-distant horizon presents a wonderful opportunity for Guyana to transition from potential – of which it has so often heard – to prosperity, of which we have so often dreamed.
“But money alone has never solved a nation’s problems; in fact, in some countries, it has been the source of bigger problems and conflict,” Jordan asserted.

He was referring to the oil industry. Several experts have warned Guyana not to fall prey to the Dutch disease. “We are a country that is still far away from where we would like to be. Achieving the Good Life and making quantum leaps in improving human development across socio-economic fronts, will take concerted efforts and resources.

Unlike other countries that have squandered their patrimony, the Cooperative Republic of Guyana must be different. We must aim to emerge over the medium term to become a model country that blends the exploitation of petroleum results with the pursuit of a Green State Development Strategy.”

Jordan asserted that gains in revenues must be utilised in a targeted and responsible manner to achieve a diversified and resilient economy. “Accountability, transparency and good governance must be core principles that drive us to excellence in our work ethic and work output, thus enhancing our capacity to deliver results, services and works to the people across our ten regions.”

BETTER BUDGET PROPOSALS
In addition, he said, our choices for construction and renovations must seek to use more local woods and manufacturers. “These are just a few examples, and I am urging you to incorporate many local content initiatives in your bidding documents.”
Jordan said far too often, he has found that the budget proposals submitted to the Ministry of Finance lead to more questions than answers, noting that budget proposals should be solutions to resolving challenges faced in order to achieve results.

“Why do we have increasing allocations to the health sector, but continued drug shortages and less hospital inspections than previous years? Health accounts for 12.5% of the national budget, in 2018. What intervention within the budget proposal will resolve this conundrum of increasing allocations but declining availability?

He also asked why increasing allocations to education but still less than 50 percent of our children are passing Maths and English. Education accounts for 17.2% of the national budget in 2018. Jordan questioned what in the budget proposal will resolve this? “Why do we have increasing allocations for maintenance and infrastructure development, yet our Public Sector Infrastructure Programme is full with requests to rehabilitate existing infrastructure, rather than expanding the capital base of the country through new infrastructure, where none previously existed? Infrastructure accounts for 13.1% of the national budget in 2018.”

“Are you, as Heads of Budget Agencies, approving performance-based gratuities without measuring performance? Or, worse, are you signing off on poor performance and shying away from your responsibility to take decisions in the best interest of achieving desired results? Are you putting pen to paper when staff do not deliver or simply sit lamenting in your offices?”

He challenged the heads that they must be able to competently critique systems that are not working or not contributing to delivering the results and offer workable solutions. The minister said his teams within the Office of the Budget and the Project Cycle Management Division stand ready to assist. The sessions for Thursday and next Tuesday aim to provide participants with the tools needed to finalise the crafting of their budgets for 2019.

He reminded the heads that Budget 2019, is being prepared on the cusp of first oil in the first quarter of 2020 and that the thinking and brainstorming and strategic direction that must go into the preparation must have started before.