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** BUDGET THEME
This year’s budget has been presented under the theme ‘Overcoming challenges together, accelerating gains for Guyana’ and saw Guyana achieving growth of 4.8 percent, even as the growth in Caribbean and Latin American region borders on three percent.
Dr. Singh said it is important to note that if the performances of the sugar industry isn’t reflected in the overall growth experienced, it would in fact be recorded at six percent.
The non-traditional agriculture sectors grew by 5.3 percent, which the minister credited with improved weather and better access to market.
SUGAR
Dr Singh, in a marathon session to Parliament, acknowledged that Government’s position on the sugar industry is clear and unequivocal; “the industry is still of sufficient systemic importance to the national economy and to the livelihoods of so many rural communities and has such deep forward and backward linkages with suppliers and distributors nationwide that no effort must be spared to ensure its long term viability, competitiveness, and profitability.”
He noted that over the years, Government has injected a total of $39.5 billion to recapitalise the industry and to support its operations. As recent as last year, Government provided a transfer of $4 billion to ensure that GUYSUCO was able to meet its financing requirements.
“Mr. Speaker, I am pleased to announce that, this year, in support of the company’s plans to modernise the industry, Budget 2013 provides an amount of $1 billion to be transferred by Government to GUYSUCO to help the company meet the financing requirements of its transformation plans,” Dr. Singh announced.
He said this support by Government to the sugar industry will redound to the benefit of the industry’s 18,000 workers, their families, and suppliers of goods and services to the company. Together, more than 120,000 persons will benefit directly or indirectly
He said that Budget 2013 reflects its commitment that had been outlined in the previous budget and warned that the nation must be cognisant of the external factors such as the global financial realities coupled with Climate Change among other factors that pose significant challenges to the local gains made.
** GOLD STELLAR
With a more than 14 percent growth for the mining and quarry sectors, the Finance Minister reported that gold declarations were 20 percent higher last year than in the previous year up to over 400,000 ounces.
This, he said, has earned the nation US$716M.
Guyana’s export earnings on products sold on the international market earned a whopping US$1.5B representing an increase of more than 26 percent over the previous year.
Foreign Direct Investment (FDI) in Guyana skyrocketed by 19 percent over the previous year and according to Dr Singh, the Bank of Guyana reports that its external reserves stand at more than $862M which is reflective of the “highest end-of-year position ever in the country.”
In reflecting on the gold sector as playing an ever increasing role in the economy, Dr Singh said this is one of the “principal destinations for FDI.”
** INFLATION REMAINS LOW
The Finance Minister, in his budget presentation, said the government has expended every effort to contain inflation and protect price stability.
This, he said, was done in part through measures such as adjusting the excise tax on occasions and providing massive support to the Guyana Power and Light (GPL) in order to avoid tariff increases.
These measures, he said, saw Guyana’s inflation being returned at a mere 3.5 per cent of GDP.
The minister did report also that local revenue such as collections on taxes were up from last year, but earnings from sources such as PAYE declined.
This decline in earnings for the government, Dr Singh said, was as a result of the increase in the tax threshold last year up to $50,000, thereby creating an avenue for more disposable income to be in the hands of working Guyanese.
In providing some sectoral highlights to the nation, Dr Singh lamented the fact that the sugar industry has been besieged by a plethora of issues including managerial capacity, weather and labour supply.
Production level in this section of the economy, Dr Singh said, is less than acceptable “but the outlook for sugar is still optimistic.”
Minister Singh pointed to protections in places such as the Common External Tariff (CET) for the region as well as Guyana’s access to the European Market.
** PACKAGING PLANT AT FULL CAPACITY
In this regard, the Minister said that GuySuCo will have to spend some $3.1B to advance the recapitalisation of the Skeldon Sugar Factory.
He said too that in 2013, the Enmore Sugar Factory will be operating at its full capacity.
Dr. Singh also noted that the rice sector is well underway to producing and sustaining more than 400,000 tonnes annually.
He says that the level of performance in the industry is a vindication of the substantial investment made in its Drainage & Irrigation, research and training.
Higher prices on the international market has also seen projects such as the Santa Fe state-of-the-art farm in Rupununi, being established, which in two years is projected to see some 10,000 acres of rice cultivated for identified markets in Brazil.
** ICT
Turning to the rapidly expanding local Information Communication Technology (ICT) sector, Dr Singh lauded the role it has been playing in the thrust of the developmental agenda.
Dr Singh said that last year $1.9B was expended in this sector.
According to the Finance Minister, over 580 kilometres of Fiber Optic Cable had been installed while the Government’s data centre is currently being tested.
In 2013, the Minister said that over $2B has been allocated for the technological push and would see the construction of more 54 LTE towers which, once completed, will see the complete e-governances service being delivered to all of the major populace in Guyana.
Dr Singh said that $1.6B was spent in 2012 under the One Laptop per Family Programme (OLPF) and to date 26,832 laptops have been distributed with more than 18,000 persons trained.
These, he said, include more than 5,000 but would have been first time users of a computer
** 30,000 LAPTOPS
Another 30,000 laptops will be purchased this year with $500M also having been allocated for the programme in the hinterland that would see computer banks being established in each Amerindian village.
Guyana has traditionally been an agriculture based economy, but according to Dr Singh, in an effort to continue to diversify this sector, almost $2B has been allocated for 2013,
Two hundred and fifty persons, he said, would be trained across the country in aquaculture while another 500M has been allocated to fund the Farmers Fertilizer and Planting Facility.
This will ensure access to quality supplies and extension services.
Three thousand farmers are expected to benefit from this initiative, according to Dr Singh, who said it is also meant at reinvigorating the Grow More Campaign that is spearheaded by the Agriculture Ministry.
** TOURIST ARRIVALS
Dr Singh said the Guyana Government has been pushing to raise the standards of the tourism sector in its bid to see this industry also becoming a top earner.
He said government will continue to promote Guyana as a destination and said that in 2012 there was more that 176,000 new arrivals with hotels enjoying 75 per cent occupancy rate.
Once completed, Dr Singh said the Marriott Hotel being constructed in Kingston, will be Guyana’s first five-star Hotel, representing the nation’s only major hotel brand.
This, he said, would significantly raise the industry’s standards.
According to Dr Singh, included in the 2013 tourism push will be a significant focus on marketing capacity building.
** $12.6B FOR ROADS
Turning his attention to the nation’s physical infrastructure, the Finance Minister said that Government continues to expand the nation’s road network.
He said that with $9.4B expended in 2012, several significant stretches of road in the Berbice area had been completed along with street lighting along the Corentyne.
In 2013, government will invest$12.6B to further improve the roads and bridges.
Dr Singh says that of this allocation, $4B has been allocated to complete the road to Cheddi Jagan International Airport (CJIA) as well as the continuation of the four lane highway on the East Bank of Demerara.
He said that the Sheriff Street to Mandela Avenue will also be undertaken in 2013 along with the upgrades of roads on the West Coast of Demerara and the continued upgrade of the East Coast Demerara Highway.
Dr Singh said that $6.6B has been allocated for the upgrades across the Regions and will include the completion of the Amaila Falls Road.
** NEW BRIDGE ACROSS DEMERARA RIVER
The Demerara Harbour Bridge, according to Dr Singh, has been earmarked to benefit from a $300M upgrade this year.
He informed the House too that this year the Government will begin its invitations of Expressions of Interest for a Public/Private Partnership (PPP) arrangement to build a new crossing for the Demerara River.
An alternative East Bank Demerara bypass road has also become necessary, and according to Dr Singh, this year works will commence to design a parallel artery.
** AIR AND RIVER
On Air and River Transportation infrastructure, Dr Singh told the National Assembly that last year $5.4B was spent by government in this sector, including paying an advance for the upgrade of the CJIA.
This year’s budget will also see monies being allocated for the rehabilitation of a number of airstrips.
In 2013, a total of $5.3B has been budgeted for the CJIA expansion project and will include the construction of a new terminal and an extended runway among other improvements.
A total of $683M has been budgeted for docking of several ferry vessels as well as for the rehabilitation of the stelling at Bartica.
** SEA AND RIVER DEFENCES
In the area of Sea and River defences, Dr Singh said there has been an ongoing battle being waged along Guyana’s coast over the years, which saw instances of overtopping and the subsequent inundations.
He said that for last year, $2.4B was spent on critical sea defence projects while this year will see a further $1.9B budgeted for the further strengthening of the nation’s sea and river defences.
Recognising the importance of Drainage and Irrigation, Dr Singh said that last year government spent $7.1B.
In 2013, he said a total of $6.5B has been allocated and is expected to go towards the final payment of fixed irrigation pumps, the construction of several pump stations as well as the completion of the Hope/Dochfour Canal that will serve as a northern relief channel for the East Demerara Water Conservancy.
** EDWC analysis
Dr. Singh also announced that, for this year, Government will be undertaking a feasibility analysis of the East Demerara Water Conservancy where existing dams will be evaluated.
He said a flood analysis will also be conducted on villages along the East Coast of Demerara that fall into the perceived vulnerable basin.
** EDUCATION BUDGET
Recognizing the importance of education to the nation, Dr Singh said that $26.5B was spent last year and of that amount $2.9B spent on schools countrywide.
The minister said that $ 1.2B was spent on the school feeding programme, and another $297M spent on uniform programme.
The University of Guyana last year received $1.3B of which $450M represented loans to students.
This amount for student loans has been reallocated with a total of $28.7B allocated for the total sector.
Given the importance of this sector to the nation, Dr Singh pointed out that between 2008 and 2013, $139B was allocated to this sector.
** LINDEN SCHOOL
The One Mile School that had been destroyed in the Linden protests of last year has been allocated monies in this year’s budget for its reconstruction.
With over $17B spent last year in the Health Sector, Dr Singh reminded that 2012 marked the final year of the Ministry’s strategic plan.
He said that $1B was spent on upgrading the facilities across the country and includes the mobilisation payment for the Specialty Hospital.
More than $300M was spent on training of public health personnel, he said, while adding that in the coming year, the health Ministry will be looking to develop a new strategic plan in an effort to consolidate the gains made.
For the coming year, $19.2B has been allocated for the Health sector.
** JUSTICE
Dr. Singh noted that, as part of Government’s commitment to build an enabling environment for accelerated development in Guyana, significant focus continues to be placed on strengthening the effectiveness and efficiency of service delivery in the justice sector.
To this end, $2 billion was expended in 2012 by the sector, including on modernising and upgrading both the physical and institutional aspects of the judicial system.
He noted that in relation to physical infrastructure, during 2012, over $256 million was expended for the rehabilitation of Magistrates’ Court in Georgetown, Whim, Mibicuri, Sisters Village, and New Amsterdam, along with maintenance works at the Court of Appeal, the High Court and the High Court Registries in Georgetown and Berbice.
The use of technology was introduced in the courtroom, with the first instance of evidence being taken from a witness by video-conference. On the institutional front, he said the capacity of the judiciary was enhanced by increasing the complement of judges, efforts were directed toward the continued revision of the Laws of Guyana up to 2010, the publication of the Guyana Law Reports for the period 1930 to 2007, and the upgrading of library collections.
Further, a computerised management information system for case-related information was fully operationalised linking the Georgetown and New Amsterdam High Court Registries which allows for timely access to status of cases and case decisions.
** PUBLIC SAFETY & SECURITY
The Finance Minister noted that Government has embarked on a comprehensive programme of reform to the security sector. The Government sees this as a long term process, and has designed a strategy which articulates a holistic approach to citizen security and safety, and public welfare.
The strategy focuses on key areas dealing with developing and strengthening administrative competencies, improving professionalism, strengthening accountability and integrity, deepening inter-organisational linkages for greater cohesiveness and impact, expanding on safe neighbourhoods pilots, and establishing houses of justice to allow for greater people’s participation and involvement in public safety and security issues.
Dr. Singh noted that in 2012, $16.4 billion was expended for the continued development and modernisation of the security sector. In this regard, five year strategic plans were completed for the Ministry of Home Affairs, Police and Prisons and now guide the priorities of these agencies. With a view to ensuring that the operational capacity of the joint services is continuously improved and to complement the efforts of modernisation, $872.7 million was spent in 2012 on the acquisition and maintenance of essential security related equipment.
To support the operationalisation of the Integrated Crime Information System, and thus improve our capacity to collect and analyse crime statistics, 18 police stations in Regions 4 and 6 were equipped with computers and connected to force headquarters.
Crime information can now be compiled electronically on a daily basis and shared with force leadership, thus enhancing planning and use of resources. In addition, new fire stations at Diamond and Mahaica were completed to provide fire fighting capabilities for the upper East Bank and East Coast Demerara areas.
Construction works continued on the fire service training school at Leonora and on the Guyana Forensic Science Laboratory. Substantial emphasis was placed on training of joint services ranks both locally and overseas.
** HOMELESS
In 2012, the Night Shelter continued to be a point of reference for approximately 200 homeless persons every day, providing them with accommodation, meals and medical assistance, and Dr. Singh said it will continue its operations in 2013.
The Finance Minister said an amount of $54 million has been provided in this year’s budget to complete and operationalise the Centre for Rehabilitation and Reintegration at Onverwagt for the benefit of a further 180 street dwellers.
** HOUSING
For 2013, the Government has allocated $3.1 billion to the housing sector for citizens to have improved access to housing and to improve the quality of life in both housing schemes and in regularised settlements.
To this end, 5,900 house lots will be distributed and over 4,000 land titles processed and distributed. In addition, a total of 210 additional core houses will be constructed and distributed. Through the innovative turnkey initiative 48 professionals between the ages of 25 and 35 will have the opportunity to own a 1,600 square foot home at an affordable cost. Additionally, over 200 home improvement subsidies will be distributed to families on the coastland and 125 to hinterland families. Also in 2013, Government will advance preparation of a young professional housing programme, with semi-gated communities being developed to meet the needs of this demographic group.
