‘Definitive answer’ to budget cuts lies with judiciary

– HPS
THE 2014 Appropriations Bill has not as yet been placed before President Donald Ramotar for assent, according to Head of the Presidential Secretariat, Dr. Roger Luncheon.That bill reflects the budgetary allocations approved by the National Assembly. This year, the combined Opposition amended the National Estimates by cutting a whopping $37.4B from the allocations of $220B; making this, the third consecutive year of cuts under President Donald Ramotar’s administration, the largest reduction in the estimates since the commencement of the 10th Parliament.

The National Budget for 2014 was passed by the National Assembly on April 16.

Dr Luncheon, at a post-Cabinet news conference yesterday, made it clear that in the absence of a “negotiated solution”, the definitive answer to the challenge of the budget cuts lies in the hands of the interpreters of the Constitution — the Judiciary.

On January 29 this year, Acting Chief Justice Ian Chang, handing down his decision in the High Court, ruled that the National Assembly has no right to cut the National Budget. In a 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 Estimates, not to cut them.

RULING NOT STAYED
A Notice of Appeal of Chang’s decision was filed in February by Leader of the Alliance For Change (AFC), Attorney-at-Law Khemraj Ramjattan, on behalf of Speaker of the National Assembly, Raphael Trotman, who was listed as the appellant in the litigation.

Dr Luncheon pointed out that there has been no pronouncement on the appeal, nor has the January ruling of the CJ been stayed.
The HPS said, “The ruling’s provisions are enforceable pending the outcome of the appeal…the CJ’s ruling removed the Opposition’s options to reduce funding of programmes. His ruling restricted the Opposition’s options to either approving or disapproving.”

He added that it is unfortunate that the timeframe for negotiating a compromised solution was set by the Constitution and is of short duration. “Constitutionally, an Appropriations Bill is due at the latest by the end of the fourth month of the fiscal year, at the end of April,” Dr Luncheon explained.

He also lamented the fact that the Opposition’s neglect “thwarted” attempts at negotiations, even within that short timeframe.

“The Parliamentary Committee of Supply’s decision, for all intents and purposes, reflected the majoritarian position of the Opposition….The Opposition selectively did not approve funding, and essentially determined the outcome of the provisions of the 2014 Appropriations Bill…it makes zero funding for many Government sectors and entities.

The Opposition’s option of non-approval, given by the CJ, was taken to the extreme,” Dr Luncheon said. The result, he noted, is the 2014 Appropriations Bill, which is more “draconian” than the 2013 and 2012 Bills.

Last year, the combined Opposition cut the Budget by $31B; and in 2012 by $21B. “In this 2014 version, the Opposition in Parliament has not approved funding for Government sectors. That, if non-funding remains unchanged, essentially prevents funding to all programmes and activities in those sectors,” Dr Luncheon told reporters yesterday.

IMPACT
The HPS acknowledged the dire consequences of the non-funding, particularly the impact on Government’s ability to execute its mandate. “It is obvious that the Executive’s mandate to govern cannot be discharged without adequate financing,” he said.

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.

The other cuts 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 organisations and the private sector.

The following programmes were also decimated: 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.
By Vanessa Narine

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