The 2010 budget is yet another demonstration of the government’s unswerving commitment to improve the lives of the working class as it has once again placed tremendous emphasis on spending in the social sector. Ever since this government took office in 1992 it has been placing great emphasis on improving the quality of essential services to the people which is in accordance with the guiding principles of the ruling People’s Progressive Party (PPP) which it enunciated since its launching in January 1950.
It is therefore not surprising that when this government assumed office it immediately embarked on a programme to repair/build schools hospitals and other social institutions across all regions of Guyana, irrespective of race, political affiliation or any other such considerations, which provide services to the working class and the poorer sections of the society.
The road to improving the social services has not been an easy one bearing in mind the run down state in which the previous administration left them and the almost empty treasury which was accompanied by a massive international debt of some US$2.5 billion. But with astute macro-economic management of the national economy, increased production, a more efficient tax collection system and negotiated debt relief the government has been able to find increasing financing for the social sector and improving infrastructure throughout the country. The latter of course is very essential to improving the investment climate and providing the foundation for economic development, apart from helping to improve the daily life of the people.
The facts and figures in the proposed budgetary allocations for education and health tell the story about the heavy emphasis on the social sector. The two sectors amount to $34.7 billion which about a third of the entire proposed budgetary spending.
According to the budget presentation made by Finance Minister Dr. Ashni Singh $21.4 billion has been allocated to education sector
he noted that the implementation of the Education Strategic Plan will continue to be of priority in 2010 reflecting the Ministry’s ongoing efforts to transform the education sector into one that eliminates illiteracy, modernises education and strengthens tolerance. In this regard, $21.4 billion has been allocated for the sector in 2010.
A total of $800 million has been budgeted for our national school feeding programme, targeting over 47,000 students in nursery and primary levels which will increase attendance and retention as well as improve the nutritional balance of our children.
Over $700 million has been allocated to the University of Guyana , comprising $657 million for recurrent expenditure on the operations and maintenance of the two campuses, and $48 million on capital expenditure to enable the completion of works on the office building at Tain, upgrading of plumbing and electrical facilities, procurement of science laboratory equipment, library books and furnishings. In addition, in 2010, an amount of $450 million has been provided for student loans.
The health sector has been allocated $13.3 billion in 2010. Of this total, the sum of $1.4 billion has been budgeted for the construction, rehabilitation and maintenance of health facilities countrywide. This includes $716 million for the new inpatient facility at GPHC which is expected to be completed later this year and will accommodate over 300 patients. This total also includes $37 million budgeted for the rehabilitation of West Demerara Regional Hospital, $23 million for the rehabilitation and expansion of Skeldon Hospital, $23 million to purchase and install a new elevator at the GPHC, and $15 million to construct a Nurses Hostel in Port Kaituma.
In 2010, $2.8 billion is allocated to the housing sector. Key targets for 2010 include the allocation of 5,500 house lots and the processing and distribution of 3,750 land titles. One Stop Shop outreach activities will continue with the aim of increasing the occupancy rate of the housing areas, and reflecting continued emphasis on quality of service delivery by Government. Importantly, and consistent with Government’s drive to use ICT for delivery of services, one can apply today online for a house lot and be able to access development plans, building policies, codes and guidelines. This facility has already benefited 151 applicants since its launch in December 2009 and seeks to benefit thousands more this year.
In 2010, an allocation of $2.7 billion to the water sector will facilitate the completion of water treatment plants in Lima , Cotton Tree and Vergenoegen as well as the Central Ruimveldt and Sophia iron removal plants which will benefit over 128,000 persons. It is also expected that phase two of the Corriverton water treatment plant will be completed at a total cost of $1.6 billion benefiting over 12,000 residents from No. 74 Village to Moleson Creek which will realise the expanded use of the slow sand filtration system and will result in lower energy consumption and with no mechanical processes lead to lower maintenance costs. In addition, service connection upgrades and metering will be done in Bartica, Leguan, Patentia, Soesdyke, Herstelling, Nabaclis, Craig Prospect and Covent Garden. Distribution networks at Half Mile and One Mile and transmission mains from McKenzie to Richmond Hill will be also rehabilitated.
In 2010, GWI will embark on updating its Sewerage Master Plan for Georgetown and Linden. Additionally a computerised model of the existing sewer system would be generated and used as a management tool to better evaluate interventions by predicting possible outcomes and will be completed in November of this year. The model will also serve as a database for the attribute and performance of the sewer network and data will be available for the first time to all users.
In view of the above it is therefore strange that the opposition is contending that there is nothing in the budget for the working class. Is not the working class which will benefit from the services of the schools, hospitals, improved water supply, better residential roads etc?
After all, the well to do can afford to seek the services of private schools, hospitals and other similar institutions. It is primarily the working class people who utilise the services of the public institutions so by improving the quality and range of services will inevitably benefit them.
But the cry of the opposition is understandable, even though illogical, because they have to make “some noise” to make their constituents feel that they are doing their job.

FINANCE Minister Dr. Ashni Singh yesterday tabled a $142.8 billion budget for this year — 10.8 percent higher than last year’s — making it Guyana’s largest budget ever with no new taxes required for its financing.
The minister reported a fourth year of consecutive growth despite recessionary conditions near and far and uncertain prices in the commodity markets. In a 64-page presentation in the National Assembly, he said: “Our rice sector returned its highest production in 10 years and its second highest production of all time. Our gold mining sector returned its highest production ever, if the large scale operations of Omai are excluded.
“We achieved a strong balance of payments surplus, in the process accumulating our highest level of external reserves ever. Our currency appreciated in value for the first time in 15 years. Inflation was at its lowest in 8 years. And, we reduced our fiscal deficit to its lowest in 10 years.”
Recapping other significant achievements last year that have laid the foundations for continuing economic growth he noted the commissioning of Guyana’s first international bridge at Takutu which has opened new conversations
and vistas of opportunity with Brazil, the certification of the second international airport at Ogle, and inaugurated scheduled international flights to Suriname and the switching on a new 20.7 megawatt power plant in Kingston, Georgetown, the first major expansion in generating capacity installed in 12 years.
“We opened new hospitals in Lethem, Linden, Mabaruma and Port Mourant; new schools in Hope and No. 8 Village; and a new well in Grove/Diamond. We graduated 491 new teachers, added 66 recently returned young Guyanese doctors to the public healthcare system, and trained over 1,700 vulnerable youths.
“We enriched the body of our laws with major new enactments, on subjects ranging from strengthening the financial sector such as by fighting money laundering on the one hand, to safeguarding the most vulnerable in society such as by providing for the status adoption, and protection of children on the other”, he said.
Singh added: “These are but some examples of developments which, taken individually or in totality, would lead one to the inescapable conclusion that there has been progress in our country.”
But he called for vigilance arguing that while the evidence of progress is plenty, the risk of reversal is never distant, and the remainder of the work is certainly not complete.
“WE MUST NEVER BE COMPLACENT’

“We must, as a nation, never be complacent about the gains we have made. Instead, we must be unwavering in our resolve, unapologetic in our steadfastness, and united in our efforts to secure and build upon these gains.”
He reported that the economy grew by 2.3 percent in 2009, somewhat more modest than the 3.1 percent growth achieved in 2008, but nevertheless a fourth consecutive year of positive growth since the floods of 2005. Non-sugar gross domestic product grew by 2.2 percent in 2009.
Singh said that in the global and regional context, this sustained domestic performance is demonstrative of the increasingly strong fundamentals on which the economy now rests.
Major projections outlined in the budget include:
** Guysuco’s turnaround plan is expected to result in further significant improvements in land preparation and land use, rationalisation of factories, acceleration of mechanisation, improvement of cane yields, more timely execution of the capital investment programme and increased production. To this end, Guysuco is projected to invest $5.8 billion in 2010, for the replacement of field and factory assets and land development.
Testing of the Skeldon factory is ongoing and expected to be concluded shortly. A total amount of $4.1 billion is projected to be spent in 2010 towards the completion of all aspects of the Skeldon project, including the agriculture operations, the factory and the cogeneration plant. The factory will benefit from expected increases in cane production and resolution of the operational issues which affected its output in 2009. The construction of the Enmore packaging plant is also expected to be completed by the end of the year. This plant will have the capability to bag table-ready sugar in various sizes and allow Guysuco to supply some 10,000 tonnes of packaged sugar to markets in CARICOM, the United States and the United Kingdom .
** Rice recorded its second highest yields ever, measured at 70 bags per hectare in 2009, as a result of introducing new varieties and expanded farmer education programmes in the form of Farmer Field Schools. The rice sector is expected to sustain the gains made in yields. The Farmer Field Schools will be sustained and expanded. Also in 2010, construction of the new seed facility at No. 56 Village will commence at a cost of $40 million and a new seed dryer will be purchased for the Burma research station at a cost of $16 million. The laser leveller purchased in 2009 will contribute to more efficient water management and reduce the incidence of weed infestation thereby further enhancing paddy yields. Further, 12 additional drying facilities will be constructed in Regions 2, 3, 4, 5 and 6 in such places as Anna Regina, Crane, Cane Grove, Bath, and Lesbeholden, and will aid in reducing spoilage.
** In bauxite, the outlook for industry sales in 2010 is expected to improve as the global economy recovers..
** Government support to the gold mining sector has included significant investment in hinterland infrastructure and a favourable fiscal regime. These and other factors enabled gold declaration to reach historic levels in 2009, generated by more than 800 small to medium sized operations with individual productions ranging from 20 to 20,000 ounces, and who employ directly about 10,000 persons.
Singh said, “Small and medium scale gold mining exploits small, high grade, near surface occurrences, which are quickly exhausted and which lead operators to relocate regularly, evolving their methods. Mining activities have increased substantially in recent years, such that we must more formally and explicitly address the environmental and social effects and achieve better alignment with activities of others in the forests, including the timber operators and their needs for certification of the forests and our indigenous people and hinterland communities, all within the framework of the LCDS (Low Carbon Development Strategy).
“Our Government is well aware of the economic importance of this sector. For this reason, as has been emphasised repeatedly by Government, while the future will bring with it necessary changes in the manner in which the mining sector operates, these will not result in the closure of small and medium scale mining, nor will they affect people’s right to work and earn. Our Government has every interest in ensuring that our citizens in this sector grow and prosper.”
** The Government has allocated $1.3 billion to continue the expansion and development of the non-traditional sub-sectors in the areas of agribusiness planning, extension services, technology transfer, and institutional strengthening. Of this sum, amounts totalling $736 million will be spent under the Agriculture Export Diversification Programme (AEDP) on the rehabilitation of the seed facility and the furnishing of the germplasm laboratory at National Agricultural Research Institute (NARI), and commencing the construction of a genetic bank at National Dairy Development Programme (NDDP). Improved services to farmers will be achieved through the streamlining of crop extension services, plant health and research, and the consolidation of livestock development programmes pursuant to the recently passed Guyana Livestock Development Authority Act. Also included in the 2010 allocation is an amount of $350 million to be spent under the Rural Enterprise and Agricultural Development Programme to develop a market and enterprise information system, to conduct a market identification and competitiveness assessment, along with other activities such as training and capacity building for over 2,000 farmers.
NGMC SERVICES WILL BE EXPANDED’

In keeping with the objective to diversify the product base of the non-traditional sectors, the government will facilitate closer collaboration between farmers and investors in promoting production of export grade fruits and vegetables. The services offered by the New Guyana Marketing Corporation (NGMC) will be expanded with the recent acquisition of four trucks and five refrigerated containers, the first cold chain support system to our rural farmers. In addition, continued support will be provided through training of farmers on good agricultural practices, agribusiness planning, marketing and post harvest management, the provision of additional equipment and the establishment of a Guyana brand, which will give our local products a more competitive edge on the international market.
** In tourism the strategy will see continued focus on key markets especially the Diaspora and geographically contiguous markets such as Suriname and Brazil, new marketing techniques especially internet-based marketing, key niches such as domestic and event-based tourism,
and high value-added subsectors such as birding and riverain yachting. The strategy will also see increasing attention to capacity and quality in the hospitality sector going forward.
Increased tourist arrivals is expected to be sustained and very likely exceeded with key impetus coming from the hosting of ICC World Twenty 20 in April/May, the commencement of international flights into Ogle, and the commissioning of the Takutu Bridge . Regulations made at the end of 2008 under the Guyana Tourism Authority Act will be enforced, and greater emphasis placed on the improvement of quality, standards, service, safety and cleanliness in the hospitality industry, with the aim of improving customer satisfaction and overall visitor experience in Guyana . To this end, education and sensitisation sessions will be hosted with stakeholders across the country, tour guides trained, operators registered, and inspections and certification conducted as required.
** In Information and Communications Technology (ICT), the Government will continue to devote substantial efforts to the realisation of modern facilitative infrastructure in the sector. To this end, the objectives will continue to be the realising of full liberalisation and competition in the telecommunications sector, the promotion of increased and more affordable access to bandwidth, promoting private investment in ICT-based industries, making more effective use of ICT in the discharge of Government functions, and increased delivery of ICT education to our young people.
In pursuit of these objectives, and particularly to establish redundancy in connectivity, improve reliability, and reduce cost, the presence of additional fibre optic cables will encourage the growth of entrepreneurial activities, including in such areas as the call and data centre businesses. This industry already provides employment for more than 2,000 persons, and is poised to grow considerably. In this regard, Government welcomes the recent investment in fibre optic cable by the Guyana Telephone and Telegraph Company Ltd. (GT&T).

The government will complement this private sector initiative with the installation of a fibre optic cable that will link Lethem and Providence through Linden, establishing connectivity with northern Brazil , for the purpose of facilitating our e-Government efforts. A sum of $847 million is provided for this purpose in 2010. A further amount of $640 million is provided in 2010 to commence the establishment of a robust infrastructure to facilitate e-Government applications throughout the coast from Moleson Creek to Anna Regina, with onward extensions to remote locations in the future. When completed, this project will effectively revolutionise the landscape of how services are delivered by Government in the future, reducing cost and enhancing responsiveness.

$7.6B BUDGETED FOR ROADS AND BRIDGES
Singh said improvements will continue this year in the transport infrastructure. In 2009, $8.1 billion was spent on improving the country’s roads and bridges, of which $6.3 billion and $1.8 billion were spent on roads and bridges, respectively.
In 2010, a total of $7.6 billion has been budgeted for roads and bridges, of which $5.2 billion will be spent on roads and $2.4 billion on bridges.
The government has also budgeted $450 million to commence major rehabilitation works on Sheriff Street to Mandela Avenue, and on the access road in Timehri leading to the Cheddi Jagan International Airport (CJIA). In addition, designs for extending the four-lane highway on the East Bank Demerara up to Grove will commence. A further allocation of $2.5 billion will finance rehabilitation and maintenance of urban, rural and hinterland roads in all Regions. Further, a sum of $1.3 billion is budgeted for continuing works on 25 critical structures from Garden of Eden to Timehri, Annandale to Buxton, and Abary Bridge .
In order to maintain the crucial linkage between Regions 3 and 4, Government has budgeted the sum of $700.5 million for continued upgrading of the Demerara Harbour Bridge, which includes the procurement of deck units, servicing of pontoons, replacement of the hydraulic ramp, and fabrication of distribution beams, transom beams and buoys.
The sum of $3.1 billion has been budgeted for continued reconstruction, rehabilitation, restoration and maintenance of sea defence structures across Regions 2, 3, 4, 5, 6, 7 and 10, while $124 million is budgeted for the commencement of a mangrove management project for sustainable coastal zone protection. This $1.2 billion three-year project includes institutional strengthening at NARI, improved monitoring and rehabilitation of mangrove fields, training, and public awareness.
In 2010, Government has allocated $6.1 billion to further improve drainage and irrigation structures. Of the budgeted sum, $800 million is allocated to commence construction of the Hope outfall channel. An amount of $852 million is allocated for the acquisition and installation of pumps, excavators and pipes in Regions 2 to 6 while $3.9 billion is allocated for the construction, rehabilitation and maintenance of drainage structures including sluices, kokers, outfall channels, revetments and groynes.
A sum of $5.8 billion has been allocated in 2010 to the power sector. From this sum, will be financed the completion of the rehabilitation of the Canefield power station and the 69KV link between Skeldon and No. 53 Village, along with the commencement of works on the development and expansion of the 69KV transmission lines and associated substations, the interconnection of the Berbice Interconnected System (BIS), the Demerara Interconnected System (DIS), and the installation of a Supervisory Control and Data Acquisition (SCADA) system.
In its continued efforts in reducing technical and non-technical losses GPL will replace 15,000 main demand meters with minor meters, install 1,365 itron meters, replace 9,000 defective meters, install 12,000 pre-paid meters and upgrade the secondary conductors for better management of primary voltage. GPL also intends to make fully functional in 2010 its US$2.8 million state of the art customer information system which will see customer accounts being immediately credited with payments made, accounts adjusted and new bills immediately generated enabling customers’ queries to be monitored more effectively. This system is an enormous step forward in the operations of GPL utilising ICT to make services more efficient and consumer friendly.
Singh said the government will also spare no effort in advancing the long embraced aspiration of harnessing hydropower in Guyana. To this end, it continues to work on the Amalia Falls project, currently sized at 156 megawatts.

In late 2009, the developer presented a position to Government where total capital costs would exceed US$600 million and expressed its willingness to fund all of the equity. Debt financing for the project is being actively pursued from both bilateral and multilateral sources and the project is expected to see start of construction in the second half of 2010, once the financing is completed. To this end, Government has allocated $4.1 billion for the construction of a roadway and other infrastructure to improve access to Amalia Falls in its pursuit of this most important project.

$21.4B ALLOCATED TO EDUCATION SECTOR
The implementation of the Education Strategic Plan will continue to be of priority in 2010 reflecting the Ministry’s ongoing efforts to transform the education sector into one that eliminates illiteracy, modernises education and strengthens tolerance. In this regard, $21.4 billion has been allocated for the sector in 2010.
A total of $800 million has been budgeted for our national school feeding programme, targeting over 47,000 students in nursery and primary levels which will increase attendance and retention as well as improve the nutritional balance of our children.
Over $700 million has been allocated to the University of Guyana , comprising $657 million for recurrent expenditure on
the operations and maintenance of the two campuses, and $48 million on capital expenditure to enable the completion of works on the office building at Tain, upgrading of plumbing and electrical facilities, procurement of science laboratory equipment, library books and furnishings. In addition, in 2010, an amount of $450 million has been provided for student loans.
The health sector has been allocated $13.3 billion in 2010. Of this total, the sum of $1.4 billion has been budgeted for the construction, rehabilitation and maintenance of health facilities countrywide. This includes $716 million for the new inpatient facility at GPHC which is expected to be completed later this year and will accommodate over 300 patients. This total also includes $37 million budgeted for the rehabilitation of West Demerara Regional Hospital, $23 million for the rehabilitation and expansion of Skeldon Hospital, $23 million to purchase and install a new elevator at the GPHC, and $15 million to construct a Nurses Hostel in Port Kaituma.
In 2010, $2.8 billion is allocated to the housing sector. Key targets for 2010 include the allocation of 5,500 house lots and the processing and distribution of 3,750 land titles. One Stop Shop outreach activities will continue with the aim of increasing the occupancy rate of the housing areas, and reflecting continued emphasis on quality of service delivery by Government. Importantly, and consistent with Government’s drive to use ICT for delivery of services, one can apply today online for a houselot and be able to access development plans, building policies, codes and guidelines. This facility has already benefited 151 applicants since its launch in December 2009 and seeks to benefit thousands more this year.
In 2010, an allocation of $2.7 billion to the water sector will facilitate the completion of water treatment plants in Lima , Cotton Tree and Vergenoegen as well as the Central Ruimveldt and Sophia iron removal plants which will benefit over 128,000 persons. It is also expected that phase two of the Corriverton water treatment plant will be completed at a total cost of $1.6 billion benefiting over 12,000 residents from No. 74 Village to Moleson Creek which will realise the expanded use of the slow sand filtration system and will result in lower energy consumption and with no mechanical processes lead to lower maintenance costs. In addition, service connection upgrades and metering will be done in Bartica, Leguan, Patentia, Soesdyke, Herstelling, Nabaclis, Craig Prospect and Covent Garden . Distribution networks at Half Mile and One Mile and transmission mains from McKenzie to Richmond Hill will be also rehabilitated.
In 2010, GWI will embark on updating its Sewerage Masterplan for Georgetown and Linden . Additionally a computerised model of the existing sewer system would be generated and used as a management tool to better evaluate interventions by predicting possible outcomes and will be completed in November of this year. The model will also serve as a database for the attribute and performance of the sewer network and data will be available for the first time to all users.
$14.9B FOR DISCIPLINED SERVICES
In 2010, the Government will consolidate on the advances made within the security sector reform and has allocated $14.9 billion to our disciplined forces. This will result in the enhanced capability of our disciplined services in addressing new and emerging dimensions of security threats, improved public order and safety and the heightening of public confidence in and support for law enforcement agencies.
Singh said the achievements of the past year were the direct result of a careful and deliberate policy stance, aimed at maintaining macroeconomic stability, strengthening the underlying capacity of the economy, and improving the circumstances of the people.
“These achievements must also not be taken for granted, for if a global recovery is actually underway it is still in its earliest days and is still subject to significant risks, and small economies like ours remain extremely exposed to the pace and depth of this recovery and to the external outlook for the medium term”, he stated.
He noted that President Bharrat Jagdeo has led the development and advocacy of an innovative and visionary Low Carbon Development Strategy (LCDS), which places environmental responsibility through avoided tropical deforestation alongside accelerated development on a low carbon path as compatible, indeed twin, objectives to be pursued.
“High awareness and strong ownership of the LCDS on the domestic front have complemented active participation in ongoing global negotiations, all aimed at securing tangible acknowledgement of the contribution of our standing forests in the global fight against climate change and at mobilising resources to facilitate investments that are critical to achieving accelerated low carbon growth”, the Finance Minister said.
He noted that the LCDS outlines an overarching framework, and lays the foundation, for building an economic base of a qualitatively different kind.
“Through its implementation, our Government seeks to build an economy and a country: (i) where national contribution to global effort in combating climate change is materially recognised; (ii) where the value added to our natural and other resources is maximised; (iii) where traditional vulnerabilities such as those that arise from external volatility or from limited domestic diversification are minimised; and (iv) where the potential of our people is mobilised and their aspirations realised.”