WORK on Budget 2015 will accelerate once the names of new ministries and the renaming of old ministries, as well as their responsibilities, are entered into the official gazette, according to Finance Minister Winston Jordan.“Some preliminary work has already been done. We will have to make a few adjustments in keeping with our [the new Administration’s] priorities,” he said, in an interview with the Guyana Chronicle yesterday.
The minister had previously indicated that he inherited some of the groundwork which was already laid out by the previous sector minister, Dr. Ashni Singh.
Jordan added that once the legal stipulations are complied with, staffers from the Finance Ministry will assist the management of the budget agencies to “put together their programmes [budgets].”
“The naming of new ministries and changes will not delay the presentation of the budget,” he said, when asked.
Relative to the budget agencies that remain unaffected by the change of Government, the newly appointed Finance Minister explained that the ministry is currently engaged in updating the budget information for these bodies.
“We are working on getting the latest figures, up to the end of May,” he said.
Jordan disclosed that a meeting of budget agencies head and other officials is expected to be called soon to have the revenue and expenditure profiles revised for inclusion in Budget 2015.
“We will meet to see what is possible for the remaining months of 2015 and we will have to revise their budget profiles,” he said.
CHANGES
Asked about expected changes, the Finance Minister noted that there will be some changes to reflect the commitments made in the 100-day plan of the A Partnership for National Unity and the Alliance For Change (APNU+AFC) Administration.
“We have other work to be done in line with the 100- day plan, which will see revenues affected in terms of the plan for VAT (Valued Added Tax),” he said.
APNU+AFC had promised a reduction in the tax on certain items. The tax currently stands at 16 per cent.
Jordan noted too that apart from changes to VAT, discussions are to be held on other matters that may affect Government’s revenue stream.
The same, he stated, applies to expenditures.“The 2015 Budget will reflect increases in pensions and the 10 per cent salary increases for the public service, at a minimum,” the subject minister said.
He added, “Everything will not be done in 2015.Currently, everything is a consideration, but we don’t want to raise people’s expectations so I will not make pronouncements on what else may be done.”
However, Jordan highlighted that after the 2015 Budget is presented and approved by the National Assembly, the 2016 Budget will be a few months away from being presented to the Parliament and could include other incentives to bolster the quality of life for the Guyanese people.
BEFORE SEPTEMBER
Assuming that the 11th Parliament is convened in June, as indicated by President David Granger, Jordan has three months to table the 2015 Estimates of Revenues and Expenditures in the National Assembly.
“I expect to be able to do that before then, before September [the three months]” he assured.
Last July, a budget call circular was issued to various Government ministries and agencies requesting the commencement of compilation of their budget submissions. When submissions were received, they were reviewed through several rounds of meetings, after which analyses were done and they were consolidated into the national budget.
Submissions from ministries and agencies routinely include information on policy recommendations, detailed articulations of various programmes and projects the ministries would like to implement in 2015, and some articulation of the expected impacts and outcomes that would arise from the implementation of these programmes and projects.
Additionally, there was a meeting between the Director of Budget and all Permanent Secretaries to facilitate discussion of requirements articulated in the budget circular in August.
Cuts to the 2014 national budget totalled a whopping $37.4B, reducing the $220B National Budget to $182.6B – which represented the largest national budget to date. The cuts to the budget totalled $31B in 2013 and $21B in 2014.
The ministry’s Budget Office facilitates the preparation of the country’s annual revenues and expenditure estimates, effective and efficient management and monitoring of resource allocation and utilization, combined with the formulation of constructive and effective economic policy.
By Vanessa Narine