AS opposition parliamentarians unveil plans to size down the country’s $208.8B National Budget with proposed cuts to key government agencies, and projects, President Donald Ramotar believes the basis for such actions are unjustified.
A decision by majority vote during this week’s Consideration of Estimates, will determine the success or failure of the country’s financial plan that was presented on March 25 and subsequently debated.
It was the same pattern followed last year when the two opposition parties, A Partnership for National Unity (APNU), and Alliance for Change (AFC) used their one seat majority to cut $21B from the estimates.
The action was deemed unconstitutional by a court ruling that the opposition interpreted differently onto this day.
At the culmination of the budget debate which President Ramotar said was lacking constructive criticism on the part of the opposition, Minister of Finance, Dr Ashni Singh in his concluding remarks berated the opposition for their apparent motive to “object for the sake of objecting’.
The Finance Minister’s argument that budget 2013 outlines initiatives that are similar to those found in the manifesto of APNU and AFC, was supported by President Ramotar who, at a recent public forum said: “Why they will cut it now would be a great mystery for me.”
In a comment to the media, President Ramotar made reference to the irony of AFC Member of Parliament, Moses Nagamootoo’s comments last week about the People’s Progressive Party winning the debate. “It seems to be so illogical. If you won the debate it seems that you have convinced them but, they are still cutting the budget so obviously they have no grounds and this is now just down to vindictiveness,” President Ramotar said.
Implications of the cuts President Ramotar said will see the country starved of resources and its pace of development slowed.
The 2013 National Budget provides for a 25% increase in old age pension and annual electricity subsidy, reduction in property tax for certain categories of small business owners, reduction in personal income tax by 3.3 percent and tax exemptions for mortgage payments of up to $30M.
The sugar industry has been given a $1B support while the Guyana Power and Light (GPL) has been allocated a subsidy of $5.8B and a further $5.4B for upgrade. Subsidies for electricity in Linden amount to $2.9B.
A motion submitted to the National Assembly by the AFC indicates their intent to cut the 2013 budget. Areas identified to be cut are: Low Carbon Development Strategy (LCDS) programmes, Hinterland Electrification, Drainage and Irrigation, competitiveness programme, East Bank Highway project, Citizens Security Programme, National Communications Network (NCN), Government Information Agency (GINA), Sports and Arts Development Fund, Board of Industrial Training (BIT) programmes, Guyana Elections Commission, and funding for all contracted employees under the Ministries of Home Affairs, Labour, Human Services and Social Security, Public Works, Local Government and Regional Development, Finance and Office of the President.
