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Finance Minister Dr. Ashni Singh yesterday presented the 2011 Budget in the National Assembly under the Theme: “Together – Building Tomorrow’s
Guyana – Today”
Key Achievements in 2010
The domestic economy achieved real growth of 3.6 percent, with non-sugar gross domestic expanding by 4.3 percent. This marks the fifth year of consecutive growth.
Inflation contained to 4.5 percent.
External Reserves increased to US$780 million, compared to US$277 million in 2006.
External Debt has been reduced from 72 percent of GDP in 2006 to 47 percent in 2010.
Fiscal Deficit reduced from 7.2 percent of GDP in 2006 to 4 percent in 2010.
The first tranche of performance-based funds, approximately US$30 million was disbursed by Norway and deposited with the trustees into GRIF (Guyana REDD+ Investment Fund). This was one of the first payments for climate services received by a developing country and represents a new economic opportunity for our country.
Gold declarations increased by 2.9 percent to 308,438 ounces
Rice production amounted to 360,996 tonnes, representing 0.4 percent value added and the second highest output since rice production commenced.
Construction industry grew by 10.8 percent.
Information and Communication sector grew by 7 percent.
Private Sector Credit grew at an average annual rate of more than 15 percent per annum over the past 4 years and amounted to $112.3 billion in 2010.
Sector Highlights
A. Low Carbon Development Strategy
2011
Implementation of first wave of projects under the strategy. These will have a transformational effect on our economy at the national level as well as the village level. Principal among them will be the provision of equity financing for the Amaila Falls Hydropower Project (AFHP), support to the Amerindian lands demarcation process; rural electrification, financing for small and micro-enterprise development and support to the Amerindian Development Fund to finance indigenous community projects.
Early in 2011, we also expect to receive the second tranche disbursed by Norway, amounting to US$40 million, to lend further support to projects under the LCDS.
Budget 2011 therefore provides for a total of $14.4 billion, equivalent to the US$70 million from these two disbursements, to be expended on the transformational LCDS projects identified
B. Transforming the Economy
1 (a) Modernising the Traditional Sectors
Sugar
2011
The Enmore packaging Plant will be completed and brought into operation increasing value added.
Rice
2010
Two seed dryers were acquired
13 Drying facilities were constructed in Regions 2, 3, 4, 5 and 6 in order to reduce spoilage of paddy.
Two new varieties of rice were released in 2010
2011
A new seed facility at No.56 Village is planned for completion in 2011
Gold
2010
For the second consecutive year gold has recorded declarations above 300,000 ounce mark.
2011
Two potential large scale gold deposits have been identified, which could attract significant investments in the future.
1(b) New and Emerging Sectors
(i) Agricultural diversification
2010
A total of $1.3 billion was spent to expand the non-traditional sectors which include the rehabilitation of the seed facility, the germplasm laboratory and acquisition of refrigerated trucks.
Under the Rural Enterprise and Agricultural Development (READ) programme, over 1,000 farmers were trained in areas such as food processing, feed formulation and pest and disease control.
2011
Government will accelerate diversification and modernisation of the agricultural sector with a budgetary allocation of $1.5 billion.
Two financial facilities will be established to provide funding to benefit qualified producer groups for improvement to their farming systems and processing activities.
7,500 hundred farmers will be trained to be better equipped to contribute to the diversification effort.
(ii) Information and Communication Technology
2010
We have devised a strategy that prioritises legislative change to promote a conducive and competitive environment, investment in infrastructure to increase connectivity and reduce cost, promoting ICT education in our schools, and improving access to ICT for all our people.
The new telecommunications legislative package comprises a new Telecommunications Bill, relevant amendments to the Public Utilities Commission Act and Regulations in the areas of licensing and access, spectrum management, universal service/access, pricing, competition and consumer protection.
In 2010 Government committed $846.5 million for a 560 kilometre high speed fibre optic network spanning Lethem to Providence.
2011
An additional sum of $2.5 billion is budgeted for the continuation of these critical infrastructure works.
The One Laptop Per Family (OLPF) programme will be launched, for which a budgetary allocation of $1.8 billion is provided. This programme will be implemented over the next two years and will see 90,000 laptops distributed to families and communities across the country.
(iii) Tourism
2010
Visitor arrivals rose in 2010 to 150,141, representing a 6.3 percent over the previous record high of 2009.
Hosted ICC World Twenty-20 and several high profile entertainment events featuring regional and international headline celebrities performed to sold-out crowds at our national stadium and other venues
2011
$150 million is budgeted for the continued expansion of the tourism sector.
Destination awareness will be raised by facilitating high quality video documentaries made by such agencies as the Travel Channel and the British Broadcasting Corporation.
(iv) Small Business
2010
The operational arm of the Council, the Small Business Bureau came into existence.
Government updated its database of small businesses, adding over 500 enterprises.
4 additional market tarmacs were constructed at Waterloo, Best Klien/Pouderoyen, Enmore and Diamond, and the Port Mourant market was rehabilitated.
Under the Women of Worth (WOW) programme, over 500 single mothers from Regions 2, 3, 4, 5, 6 and 10 have already benefitted from approved small business loans without the constraint of having to offer collateral.
2011
The drafting of a small business policy is expected to further streamline management of the sector.
Government seeks to intensify its public outreach through development of a website, as well as additional television and print media exposure.
Works will continue on the market tarmacs at Plaisance and Buxton, and the construction of the Mahaica market, and Mahaica and Haslington market tarmacs for which $171 million has been allocated.
Under the WOW programme an additional 1,720 female single parents are expected to be granted small business loans.
(v) Oil Exploration
2010
Drilling commenced in the Takutu Basin, plans advanced for drilling in the offshore Georgetown Block.
C. Physical Infrastructure for Transformation
a. Roads and bridges
2010
$7.9 billion was expended to improve our country’s roads and bridges network of which $5.9 billion was spent on roads and $2 billion on bridges.
$943.2 million was spent to commence reconstruction of an all weather ring road in Black Bush Polder and all weather roads in East and West Canje.
Over 300 urban, rural and hinterland roads were rehabilitated and maintained at a cost of $4.1 billion.
Investment in the Demerara Harbour Bridge to the cost of $700.5 million entailed the procurement of critical components
2011
$10.1 billion has been budgeted for roads and bridges, of which $8.2 billion will be spent on roads and $1.9 billion on bridges respectively
$1.7 billion has been budgeted this year for the completion of 34.5 kilometres of all weather roads in the Black Bush Polder area and also 19 kilometres of roads in the East and West Canje areas.
Allocated the sum of $1.6 billion for the rehabilitation and improvement of the Sheriff Street to Mandela road, access road to the Cheddi Jagan International Airport, the continuation of the four lane highway from Providence to Diamond on East Bank Demerara and complete the feasibility studies for a four lane highway from Better Hope to Golden Grove on East Coast Demerara.
$3 billion is also allocated to construct, rehabilitate and maintain urban, rural and hinterland roads while an additional $1.8 billion is budgeted to upgrade approximately 85 kilometres of existing roadway and the construction of approximately 110 kilometres of new roads from Linden to Amaila Falls.
16 critical structures will be completed along the East Bank and East Coast highways of which a sum of $953 million is budgeted
(b) Air and River Transport
2010
Approximately $367 million was expended to further develop and upgrade the Ogle International Airport with an extended runway which now accommodates Dash 8 series aircraft.
$140 million was spent to upgrade equipment at the Civil Aviation Authority.
39 original aerodromes were inspected and maintained during the year, while works on Wakenaam airstrip was substantially completed.
$479 million was expended on the rehabilitation of the Leguan and Bartica stellings and the docking of several vessels including the MB Barima and MV Malali.
2011
$178 million is allocated to commence preparatory work on designing an extension of the CJIA airstrip by 3,500 feet to accommodate 747-400 aircrafts, and extension of the arrival and departure lounges with attendant air bridges.
$88 million is allocated for the construction and rehabilitation of the Leguan airstrip and an additional $40 million for the maintenance of other domestic aerodromes across the country.
$173 million is budgeted for the modification of the Parika and Supenaam stellings and the construction of the Kumaka wharf
$382 million is budgeted for the docking and rehabilitation of Dredge Steve ‘N’, Split Barge, MB Baramani and MV Torani.
c. Sea and River Defence
2010
$2.6 billion was spent to further reinforce, upgrade and maintain our sea and river defence infrastructure in Regions 2 to 7.
The mangrove management project for sustainable coastal zone protection commenced with $100 million expended on the construction of a mangrove nursery at Mon Repos and the cultivation of over 60,000 mangrove seedlings at Hope Beach, Triumph, Beterverwagting and Chateau Margot.
2011
$3 billion budgeted for the continued construction, reconstruction, rehabilitation, restoration and maintenance of sea and river defence structures.
(d) Drainage and Irrigation
2010
$5.1 billion was spent on drainage and irrigation to conduct major capital works which included rehabilitation of control structures, construction and rehabilitation of sluices and revetment at De Willem, Waterloo, Amersfoorte, Buxton, Moleson Creek and Alness, and earthworks rehabilitation at Black Bush Polder. Earthworks have also commenced at Hope outfall
$6.6 billion will be invested towards the purchase of equipment, and construction, rehabilitation and operational works of the national drainage and irrigation system.
(e) Hydrometerology
2011
There will be an expansion and modernisation of the hydrological networking system along the country’s coastal and inland locations
(f) Energy, Power Generation and Supply
2010
$5.3 billion was spent in the power sector.
17,324 new connections achieved in areas such as Charity, Wakenaam, Anna Catherina, Stewartville, Lusignan, Bara Bara, Cumberland, Port Mourant, Four Miles, Byderabo and Amelia’s Ward.
The hinterland communities were able to benefit with 1,432 households and 4 primary schools now receiving electricity at Muritaro, Yarakita, Capoey, Kurukubaru, Chenaupou, Yupukari, Sand Creek, Red Hill, Santa Aratak, Jawalla and Paruima.
The rehabilitation of the Canfield power station, the completion of the 69KV link between Skeldon and No. 53 Village, the launching of the GPL customer information system, the ongoing replacement of defective meters and educational campaign to reduce non-technical losses and promote demand management.
Government continues to make progress on the Amaila Falls Hydropower Project (AFHP), which is being developed as a public-private partnership using a 20 year Build Own Operate Transfer (BOOT) model. The contract for the construction of the access roads was awarded in 2010.
2011
The AFHP is sized at 154 MW with financing for this project of approximately US$650 million coming from equity contributed by Sithe Global, equity from Government under the Low Carbon Development Strategy, and debt financing. Financial close is expected by the end of the second quarter of this year, thus allowing the construction to start late in 2011 while the commercial operations of the AFHP is slated for 2015.
An additional 15.68 MW at a cost of approximately US$18 million would be added this year to the 20.7 MW plant at Kingston
US$4.2 million is earmarked under GRIF through the LCDS for the hinterland electrification programme which targets the distribution of 11,000 solar panels to homes and other critical installations in the hinterland.
D. Investment in People
a. Education.
2010
Government expended a sum of $21.8 billion over the last year in the sector.
The National School Feeding programme which cost over $900 million and benefited more than 63,000 students.
The National School Uniform Assistance Programme which benefited over 200,000
$923 million was expended on construction works at 2 new technical institutes in Regions 3 and 5, along with the procurement of furniture, tools, and equipment for all institutes,
$129 million was expended on the Secondary Competency Certificate Programme implemented in 18 additional secondary schools.
$875 million has been expended on teacher education towards the operations and renovation works at the Cyril Potter College, which added a total of 364 trained teachers to the education system in 2010.
$2.4 billion was also expended in 2010 towards the maintenance, rehabilitation, extension and construction of educational facilities throughout Guyana
78 information technology laboratories were completed at primary and secondary schools
2011
$24.3 billion has been allocated towards the continued successful implementation of the National Education Strategic Plan in 2011
US$4.2 million Guyana Improving Teacher Education Project of which $200 million is budgeted for 2011
$919 million has been budgeted for teacher training towards the medium term target of achieving 70 percent trained teachers in the system by 2013.
Work has commenced and will continue during 2011 on the design of a US$10 million project to strengthen the School of Earth and Environmental Sciences at the University of Guyana as a permanent academic and research institutional
University of Guyana has been allocated $769 million towards the operations and maintenance of the Turkeyen and Tain campuses.
$450 million has been provided for student loans.
The National School Feeding programme has been allocated over $1 billion and will continue to deliver a snack to every student in all nursery schools and grades 1 and 2 of primary schools.
School Uniform Assistance Programme will continue to be implemented in 2011, and will see every school child provided with one school uniform during the year.
$1.6 billion has been budgeted for technical vocational education and include the completion of construction works at the vocational centres in Regions 3 and 5, the construction of a student dormitory at Essequibo Technical Institute.
$2.8 billion has been allocated for the continued maintenance, rehabilitation, extension and construction of educational facilities countrywide.
b. Health
2010
Government expended $13.4 billion in 2010 towards the implementation of the National Health Sector Strategy 2008-2012.
$1.3 billion was expended for the construction, rehabilitation and maintenance of health care facilities in 2010.
Over $280 million was expended on training, while more than 150 new health workers entered the public health sector contributing to improved doctors and nurses’ population ratio.
2011
$14 billion has been allocated to the health sector
Government has budgeted to inject $345 million into training activities, which will provide for an additional 250 professional nurses being trained and 140 clinical and technical staff, while over 280 students in various health disciplines are currently in training across the various schools.
1 billion has been budgeted for the construction and maintenance of health sector buildings and infrastructure nationwide
Storage bond in Diamond will be completed in 2011
$235 million has been budgeted for the completion of the GPHC inpatient facility. Additionally, facilities at Enmore Polyclinic, West Demerara Hospital, Leguan, and Oscar Joseph District Hospitals will be upgraded.
c. Housing
2010
Over $9.6 billion was expended in the housing sector in 2010
Allocated of 6,331 house lots as well as the distributed 4,591 land titles surpassing our targets of 5,500 house lots and 3,750 land titles
$343.7 million was expended over the last year for the successful completion of a $2.2 billion housing project which has realised the construction and upgrading of roads, drains and structures benefiting 4,636 lots in areas such as Cummings Lodge C&Y, Sophia, Westminster, Belle West, Glasgow and Onderneeming.
$680 million was spent on the construction of roads, drains and structures in areas such as Block 8 Mon Repos, Plantation Schoonord, Anna Catherina, Hope Estate
2011
$3.6 billion is allocated to the housing sector to facilitate the development of housing schemes which is expected to result in the allocation of 7,500 house lots and the processing and distribution of 4,000 land titles.
$700 million will be spent on improving the road network and water distribution systems to the benefit approximately 1,500 households.
Under the Second Low Income Settlement Programme, 148 core houses are expected to be completed
d. Water
2010
$3.4 billion was expended in the water sector
Completion of the water treatment plants at Lima, Vergenoegen, Cotton Tree, Central Ruimveldt, Sophia and Corriverton benefiting over 100,000 persons with improved water quality.
15,000 service connections were upgraded and in excess of 5,000 water meters were installed.
2011
$1.5 billion has been allocated to the water sector to achieve its objective of ensuring improved water supply
$850 million is allocated for improving water distribution in areas such as Hope, Calcutta, Lochaber, Anna Catherina, Diamond, DeHoop and Bartica.
In Linden, $75 million is budgeted to improve transmission and distribution systems at Amelia’s Ward and Wisroc from which over 7,000 residents will benefit.
Another $103 million is budgeted for provision of water to hinterland communities such as Sand Hills, Wiruni, Calcuni, Kariabo, Kwebanna and Mahdia where over 5,000 residents will benefit.
(e) Sanitation
2010
An allocation of $180 million to commence implementation of the US$10 million Georgetown Sanitation Improvement Programme.
Work on the access road to Haags Bosch has been completed whilst work on the landfill is now expected to be completed during the first quarter.
2011
$800 million has been allocated to facilitate the advancing of further works on the construction of the Haags Bosch sanitary landfill.
(f) Vulnerable groups and Other Targeted Interventions
i. Children
2010
The national foster care programme became fully operational and has seen the permanent placement of 69 children into foster homes
The Child Care and Protection Agency has moved 360 children from abusive situations and placed in safe environments.
2011
Government will continue to extend the protections we give our children through the passing of the two additional pieces of legislation governing child care.
The foster care programme is expected to expand.
Sophia Care Centre for children is expected to become operational in the first quarter of this year.
ii. Youth
2010
2,000 out of school youths were trained under the National Training Project for Youth Empowerment (NTPYE) programme.
570 young people were trained through the Youth Entrepreneurial Skills Training (YEST) Programme
219 youths were trained in various disciplines such as basic air conditioning, electrical and fuel systems management and garment construction under the Board of Industrial Training.
2011
261 youths are targeted to be trained under the BIT and over 700 more young people under the YEST programme.
$120 million has been allocated to the National Sports Commission to facilitate the expansion of sporting activities in schools.
$200 million has been allocated for the upgrade of several sports grounds countrywide.
iii. Women and Single Parents
2010
The Women of Worth (WOW) programme launched in June of last year resulted in over 500 women benefiting from approval of loans ranging from $100,000 to $250,000.
Training programmes under the Guyana Women’s Leadership Institute (GWLI) benefited 150 women
333 single parents from Regions 2, 3, 4, 5, 6, and 10 graduated in such areas as cosmetology, computer repairs and electrical installation.
2011
Under the WOW programme a further 1,720 applicants are expected to be processed
GWLI will train 220 women and once again $25 million is allocated for the single parent programme
iv. Elderly
2010
Financial support in the form of monthly old age pension benefited over 42,000 of our pensioners
Subsidised water payments were afforded to qualified pensioners to the tune of $3.6 billion.
2011
With effect from February 1, 2011 old age pension is $7,500 monthly, a 14 percent increase compared to the $6,600 per month paid previously.
v. Homeless
The construction of the 300-bed residential centre for rehabilitation and reintegration at Onverwagt has commenced and is expected to be completed later this year.
The Night Shelter has extended its capacity by 60 persons to now cater for 250 persons.
vi. Indigenous Communities
2010
Under the Amerindian Development Fund (ADF), $197.9 million was provided for projects and programmes arising from community development plans.
The Secure Livelihood Programme expended $31.7 million which benefited over 150 farmers.
The Hinterland Scholarship programme which awarded 71 places in 2010.
$92.1 million was spent on the construction of a student dormitory at Liliendaal with capacity to house 120 students.
2011
Land titles will be issued to 13 villages in Regions 1, 7, 8, 9, and 10.
Under the ADF $78 million is budgeted for community programmes
The Secure Livelihood Programme is expected to expand within Region 1 to benefit over 200 farmers and for which $33.7 million has been budgeted.
vii. Other Vulnerable Communities
2010
9,000 persons received monthly support through the public assistance programme
2011
Public Assistance is currently paid at a rate of $4,900 per month, would be increased to $5,500 per month with effect from February 1, 2011.
E. Enhancing Security and Justice
a. Public Safety and Security
2010
Security sector expended $14.2 billion on institutional strengthening, capacity building, infrastructural works and equipment.
$527.9 million was spent on the construction, rehabilitation and maintenance of our security buildings and infrastructure.
$580.8 million was spent on the acquisition and maintenance of vehicles
2011
$15.9 billion is allocated for the sector in 2011.
$1.1 billion will be provided for improving infrastructure and buildings including the construction of a modern forensic laboratory and firefighting training school, new fire stations at Mahaica and Diamond
$140 million will be expended on training our security forces.
$662.2 million is allocated for the purchase of vehicles including trucks, pick ups, fire tenders and buses
b. Modernising Justice Administration
2010
G$1.5 billion was spent in this sector
Family Court was completed at a cost of $58.8 million while two new Magistrates’ Courts were completed at Charity and Leonora at a total cost of $22.8 million.
Sentencing guidelines for Judges and Magistrates were developed
Revision of the substantive laws to 2006 was completed 2011
$2.4 billion has been budgeted to consolidate advances made within the justice sector
$195.4 million is allocated for the construction, rehabilitation and extension of Magistrates courts.
F. Foreign Relations
2010
Assumed the Chairmanship of UNASUR
2011
Guyana will continue to provide intellectual leadership to the global discourse and policy debates on the subject of climate change.
G. Other Institutional Reforms
a. Financial Sector Reform
Legislative achievements for 2010
Established the framework to license and supervise credit bureaus and to bring the New Building Society under the supervisory authority of the Bank of Guyana.
Commenced the licensing and supervision of the money transfer agencies and agents.
b. Improving the Business Environment
2010
The restructuring of GRA along functional lines has continued to result in more efficient services offered to citizens.
GRA continued to expand its reach across the country through the establishment of fully integrated regional tax offices in Linden and New Amsterdam
2011
Commercial Companies Corporate Tax rate has been reduced to 40 percent from 45 percent with effect from year of income 2011
Non-Commercial Companies Corporate Tax rate has been reduced to 30 percent from 35 percent with effect from year of income 2011
Government will advance the implementation of the Single Window Automated Processing System (SWAPS) which will take place over the next two years.
A comprehensive review of the existing competition legislation will be conducted, with particular attention being given to mergers and acquisitions.
( c ) Strengthening Public Administration and Accountability
Reintroduced public tendering for procurement
Maintain focus on value for money in the management of resources.
d. Governance
Guyana also met other international treaty reporting obligations in terms of the UN Convention on the Elimination of all Forms of Discrimination against Women, the UN Convention on the Rights of the Child, and the Inter-American Convention against Corruption.
9th Parliament, the past four years have witnessed the most dynamic period of law-making with 124 bills being enacted, the largest number for any session in the history of the Guyana Parliament
5. TARGETS 2011
The size of Budget 2011 is $161.4 billion, 13.1 percent higher than last year’s budget and the largest budget in our country’s history
Budget Measures
With effect from February 1, 2011 old age pension is $7,500 monthly, a 14 percent increase compared to the $6,600 per month paid previously.
Public Assistance is currently paid at a rate of $4,900 per month, would be increased to $5,500 per month with effect from February 1, 2011.
The threshold will be increased from $420,00 to $480,00 with effect from year of income 2011
Commercial Companies Corporate (except telephone companies) Tax rate has been reduced to 40 percent from 45 percent with effect from year of income 2011
Non-Commercial Companies Corporate Tax rate has been reduced to 30 percent from 35 percent with effect from year of income 2011
The economy is projected to continue to grow in 2011, by 4.6 percent, with the non-sugar economy projected to grow by 2.8 percent
Sugar production is targeted at 298,879 tonnes, 35.3 percent above 2010 level of production
The rice industry is projected to increase its production even further 379,628 tonnes which would be the highest ever level of production.
The manufacturing sector is targeted to grow by 7.7 percent
The information and communication sector is expected to grow by 5 percent.
The engineering and construction industry is targeted to grow by 4.5 percent
The inflation rate is targeted at 4.4 percent.
The deficit of the non-financial public sector is projected to decline to $17.3 billion or 3.5 percent of GDP.
