–Jordan urges as agency heads meet

FINANCE Minister Winston Jordan has underscored the importance of developing realistic and achievable budgets as the country tries to strike a balance between its incomes versus expenditures.

In his address during the opening ceremony of the ‘Budget 2018 Preparation and Sensitisation Session’ at the Guyana Marriott on Monday, the Finance Minister said the upcoming budget is being crafted at a time when domestic revenues and other sources of financing are not expected to be substantially higher than 2017, and that as such effective planning is critical.
“You are well aware of demands by certain groups for removal of one tax or the other. You are well aware that as a result of our upper middle income classification, concessional resources are dwindling,” Minister Jordan said as he reminded the Heads of Budget Agencies present of the reality.
As such, he said, greater effort will be needed to widen the tax net through greater efficiency in the administration and collection of taxes.
On the flip side, the Finance Minister said expenditure pressures continue to mount. “For example, in 2018, we have to find new monies to finance Local Government Elections and re-build the country’s prison system, even as we continue to support GuySuCo, which continues to consume billions of dollars.
“So, the math should be clear: Lower expectations for revenue juxtaposed against higher demands for spending equals bigger budget deficit, which in turn means bigger debt and debt repayments for present and future generations. Only an irresponsible government will contemplate such a scenario. We are not such a government!” he said.

Given the reality, Minister Jordan said it is incumbent upon agency heads to develop realistic and achievable budgets.
According to him, many Budget Agencies have adopted a horizontal approach in the preparation of their budgets as against utilising a vertical approach.
“Even as we have employed a more programmatic approach to our budgeting, too many budget agencies remain steeped in line item budgeting, focusing on inputs rather than outputs. My admonition to you right now is: STOP IT!
“Adopting a vertical approach would allow for prioritization of key projects and initiatives,” the Finance Minister said, adding:

KNOW YOUR SECTOR

“Be guided by the strategic plans and the sector’s medium-term objectives; be guided by value-for-money and cost-efficiency measures. Above all else, be guided by results. Your job means achieving a balance of all of these. You must demonstrate a persistent and keen interest in managing in a timely manner. Know your sector. Collect the data, know the data, and use it for your evidence-based submissions to the Ministry of Finance, and within your own agencies. Nothing less is good enough! Nothing less is demanded of you!”
In revising and updating their plans for the next four years, Minister Jordan said it is important for Budget Agencies to be cognisant of the vision of the government, emphasising that in the examination of their performance framework, they must ensure that requests for the allocation of resources will directly and measurably contribute to the achievement of programme deliverables.
“It is also a time for serious reflection on past performance; a time to determine what works and what doesn’t; what is contributing to the expected outcomes of the programme and what is not; what programmes need to be scrapped altogether, what needs to be re-engineered, what needs to be expanded and what needs to improve,” he posited.
At the macro level, Minister Jordan said that the government is in the process of analysing and reflecting on the performance of the economy for the first half of the year. Growth performance of the various sectors of the economy, inflation, financial stability, the level of economic activity, job creation, earnings from exports, the amount expended on imports and the rate of implementation of public sector investment are among variables that are being microscopically examined.
Despite the prevailing challenges, the Finance Minister said the government will continue to pursue the “Good Life” for all Guyanese.
For the government, he said, the “Good Life” is neither mantra, a slogan, an abstract concept nor nirvana but rather a constant reminder that it must improve the quality of life of all Guyanese, through the improvement in the quality and quantity of goods and services be it in the areas of health, education, security, economic stability, community development or job creation.
It was noted these critical areas of development will be embodied in the Green State Development Strategy, currently being developed with the help of the United Nations Environmental Programme (UNEP).
“These national goals will incorporate the relevant Sustainable Development Goals and any outstanding targets related to the Millennium Development Goals,” Minister Jordan added.
As it pursues the “Good Life” for the Guyanese people, Government will continue to champion good governance and transparency, he added.
The closed-door session, which attracted a number of Heads of Budget Agencies and Senior Government Officials, on Monday focused on the Green State Development Strategy Framework, Fiscal Outlook on Oil and Gas, Green Initiatives in the Public Sector and Child Friendly Budgeting.