BUDGET 2014 was passed by the National Assembly last night, with amendments by the combined Opposition, A Partnership for National Unity (APNU) and the Alliance For Change (AFC), which effectively cut $37.5B from the allocations of $220 M.Government Members of Parliament (MPs) after the vote for the passage of the Appropriation Bill, the 2014 Estimates, registered their disappointment over the cuts and contended that the impacts would pose dire challenges to the people of Guyana.

At a press conference following the passage of the amended 2014 Budget, held in Committee Room of Public Buildings, Prime Minister, Samuel Hinds, stated that key financing to advance the development of the Guyanese people and, by extension, the country, have been cut, when the 2014 allocations were building on eight years of consecutive economic growth and progress.
He cited in particular the impacts on Guyanese youth, the Amerindian people, and the blow to major transformational projects.

UNAVOIDABLE CONCLUSION
Finance Minister Dr. Ashni Singh added that the cuts represent the Opposition’s callous and irresponsible acts against the Guyanese people.
He concluded that the Opposition’s agenda is a clear one, one to sabotage progress, stymie development and derail transformational projects that have the potential of improving the lives of all Guyanese.
Singh stressed that he is of the firm conviction that the Opposition’s agenda is to retract Guyana’s progress to extract political gains.
“The nation must condemn this in the harshest possible terms,” he said.
The Finance Minister referenced the final item that was disapproved of by the combined Opposition, the 18.5B for initiatives under Guyana’s pioneering Low Carbon Development Strategy (LCDS), which included provisions for the Amaila Falls Hydro-power project (AFHP), and underscored the lack of reason in objecting to the provision.
“You would have thought the absurdity of the position would have been clear,” he said, explaining that the combined Opposition’s arguments against the project was that the international partners approve the project first before the National Assembly gives its support.
Singh pointed out that in no jurisdiction will the country proposing a project be able to gain the support of partners without being able to convince them that the country itself is ready to move ahead with the project.
He stressed that the 2012 Budget cuts sent “adverse” signals to the partners involved in the project, but Guyana was fortunate to be able to maintain their interest, which is something that cannot be assured unconditionally, given the current state of events.
The Finance Minister made it clear that if the line of questioning by the Opposition was to be examined, the record would reflect that no question was left unanswered and every opportunity was made to allow for greater scrutiny of areas where there were contentions.

RED HERRING
Asked about the Opposition’s request for contentious allocations to be “delinked” from groupings of allocations that the Opposition had no problem approving to prevent ‘collateral damage’, Singh vehemently rejected this as a red herring.
He was clear in stressing that the allocations, in the way they were grouped, remain unchanged from “time immemorial” and any assertion to indicate otherwise is a misrepresentation of reality.
“There has been no change…saying otherwise is a blatant misrepresentation of the facts,” the Finance Minister stressed.
He added that the ‘delinking red herring’ is an attempt to distract the Guyanese people from the callous and irresponsible actions of the combined Opposition, an attempt to “hoodwink” the nation.
“I have all confidence that the Guyanese people will not absolve them (the APNU and the AFC) of this responsibility,” Singh said.
He noted too that the Government’s position on the cutting is that all the areas are all quintessential to the improving the welfare of the Guyanese people and developing the nation as a whole.

CUTS
Last night the areas that came under the combined Opposition’s knife include: $18.5B for the LCDS initiatives; $450M for loans for University of Guyana Students; $725M for the poverty alleviation programme; $7M for the different rights commissions; $795M for the Basic Needs Trust Fund; and $4M for support to non-governmental organisation and the private sector.
On Tuesday, under the allocation for the Office of the President, the cuts include: $245M for the Presidential Guard services; $95M for the provision of developmental and humanitarian aid among other initiatives; $10M for the Office of the First Lady;$73.5M for the Guyana Energy Agency; $119M for the Guyana Office for Investment (GoInvest); $122M for the Institute of Applied Science and Technology (IAST);$17M for the Integrity Commission; and $28.5M for the Office of the Commissioner of Information.
Last Friday, the other cuts made included: the Specialty Hospital – $910M; upgrading of Regional and District Hospitals, including Port Kaituma, Kwakwani, Linden, Bartica, Eye Surgery Operating Room at Linden etc. – $360M ambulances, ATVs and Boats – $42M; surgical equipment and instruments – $32M; the Amerindian Development Fund – $1.1B; other Amerindian Programmes, such as ATVs, Tractors etc. – $40M; the Cheddi Jagan International Airport (CJIA) modernization project – $6.6B; Civil Aviation – $50M; and Hinterland Airstrips – $185M.

SUB-COMMITTEE
The Finance Minister also addressed the establishment of a sub-committee of the Parliamentary Committee of Supply, where the cuts were made during a detailed review of the 2014 allocations.
He noted that at all times the Government was open to talks, regardless of the fact that it was a suggestion of the Speaker of the House, Raphael Trotman, which was made last Wednesday and not in accordance with the Standing Orders which guide the proceedings of the National Assembly.
Since being set up, the Committee met once on the following day, on Thursday, and a subsequent meeting on Friday was cancelled by the Speaker himself after A Partnership for National Unity (APNU) Chief Whip, Amna Ally, failed to meet its side of the agreement. According to the agreement, the issues of contention are to be presented to the sub-committee at 9:00am each day for discussion.
Singh contended that with no exhaustive list of concerns, there could be no negotiation, as the Government could not reach a compromise one day on an issue, without knowing what the other issues could be brought on another day.
He explained that with no list, the compromise would be a blind one, which simply could not be done.
The minister stated that the Government’s position has been one of compromise and engagement, while the Opposition’s stance has been contrary.

NEXT STEP
Singh said the next step would be to review the constitutional avenues for a move forward on the matter and the reliance on the final ruling of the Acting Chief Justice, Ian Chang, as well as the advice of the Attorney General, Anil Nandlall.
In January this year, Acting Chief Justice, Chang ruled that the National Assembly has no right to cut the national budget. The Chief Justice handed down his decision in the High Court on January 29.In the Preliminary Ruling given in June 2012, the CJ had ruled that the National Assembly had a role to either approve or disapprove of the National Estimate, not to cut them.
A Notice of Appeal of Chang’s decision was since filed in February by lawyer and Leader of the Alliance For Change, Khemraj Ramjattan, on behalf of Speaker of the National Assembly, who was listed as the appellant in the court.
The Finance Minister, noted, however, that even if these avenues allow for the restoration of the monies cut, this is not the ideal state of affairs one would like to see in any country, particularly as it concerns the message that is being sent to the international community.
According to him, last night’s vote has done “grievous harm” to the nation, particularly when it comes to answering the questions of the people whose needs immediate funding is needed to address.
“What do you say to the patient in Port Kaituma,” he asked, making clear that the consequences and damage of “postponed development” are real impacts that will resonate with the Guyanese people in their everyday lives.
The AG and Minister of Legal Affairs echoed similar sentiments.
Nandlall noted that the legal options will be examined and discussions at the Cabinet level will have to be undertaken before a way forward is decided on.
He referenced the acts in the National Assembly as an “implosion” as it relates to the separation of powers of the Executive and the Legislature.
The AG explained that the Executive is charged with the financial management of resources of the state, whereas the Legislature is responsible for oversight in ensuring accountability and transparency, not marring development.
The next Cabinet meeting of the current Administration is scheduled for Tuesday and the National Assembly is scheduled to meet again on May 15.
Written By Vanessa Narine