BY now, students of history would be researching whether at any time, there have been two state budgets presented within eight months of the life of any government.  This would be a novel departure from the norm and a fresh approach since the government was changed in May 2015 after 23 unbroken years.

The first budget under the new government (APNU + AFC coalition) was presented on August 10th, 2015 under the theme: “A Fresh Approach to the Good Life in a Green Economy.”  That budget saw basic minimum wages increasing from $39,000 to $50,000, and with public servants getting a hike plus an additional $5,000 monthly.

By December, the government pumped up the increase with a $50,000 bonus to put more money in the pockets of public servants for the holidays. Old Age Pensioners also received an increase and the promise to lower the toll of the Berbice River crossing was realised several months later.  But the impact of the budget on development programmes was not fully realised, as could be expected by a late budget.  Monies allocated could not be spent on a number of projects in such a short time, and almost every region returned unspent sums to the treasury. In this regard, the capital projects could not generate the much-needed jobs that were expected.

Finance Minister Winston Jordan has projected that in spite of the late budget, the economy was expected to grow by 3% which was just below .5% of the budgetary projection. Whether this forecast was realised would be known today when Minister Jordan presents his second state budget just eight months into the new coalition government’s term. The fresh approach seems still fresh. Government has emphasised that it is based on transparency, accountability, partnership and last but not least, anti-corruption.

It is evident that the fresh approach spoken of by the administration is captured in the several forensic audits to account for missing funds/assets; in restoring public buildings and other places and making the capital city green and beautiful again.

The fresh approach spoken of by the government should see new energy not only in the economy, but in socio-political life, when local government elections are held on the 18th of March this year after some 19 years. It is expected that the coalition would increase subventions to the municipalities and neighbourhood councils to continue infrastructural works such as clogged drains and canals, impassable roads, broken bridges, rundown community centres and schools, etc., and that both cities and villages could also share in the better life.

For reasons that are well known, Guyana is slowly dragging itself out from social stagnation.  This was compounded under the previous administration by the fall in the price of gold, the rundown of the sugar industry and the loss of a lucrative market for rice. Any turnaround expectedly would be slow and it is hoped that the 2016 Budget would address both the sloth in the economy and unfurl major projects to inject new life into economic activities.

It is also expected that efforts would be intensified to stamp out tax evasion and smuggling, so that more revenues could be garnered for social needs.  It is also expected that less amounts would be spent on servicing and repayment of the already huge national debt which stands close to US$2Billion dollars, so that more funds could be available for use to satisfy our people’s needs.

The 2016 Budget will give adequate time for capital works to kick in, which would make a difference to the job market.  It will also ensure proper utilisation of funds to meet anticipated needs such as the current drought and that Government would not be forced to seek supplementary votes for what in the past would be unforeseen circumstances.

The fact that the 2017 Budget could be presented in December this year speaks volumes to the serious approach by the coalition Government to fiscal regulatory and financial planning.  We look forward to the 2016 estimates of expenditure with optimism and hope that there is something in it for all.