–amidst vigorous opposition

THE National Assembly early Friday evening passed what is the country’s biggest budget ever to date at $300.7B, despite vigorous opposition.
There was energetic banging of tables on the government side of the House, while the opposition remained impassive after approval was granted for the government’s fiscal spending for 2019.

The passage of the budget followed two weeks of debates and scrutiny, and instances of passionate contributions by government and opposition Members of Parliament (MPs) alike.
After consideration of the estimates of expenditures concluded on Friday, Finance Minister Winston Jordan declared that the period of scrutiny had come to an end.

The Appropriations Bill 15/2018, which details the estimates for all ministries, and gives the government authority to spend, was then tabled and passed in the House.
Subsequent to the passage of the budget, Speaker of the National Assembly Dr. Barton Scotland said every member of the House had expressed himself/herself passionately during the two weeks of consideration and debate. He said he thought that the budget was well ventilated, as was discussion on the estimates.

Minister Jordan on November 26 unveiled the $300.7B package, which includes a range of measures from the raising of the Income Tax threshold to increases in Old Age Pension and Public Assistance. Budget 2019, which represents a 12.6 per cent increase over the 2018 budget, also forecasts that the economy will grow by 3.4 per cent this year, a significant improvement on the 2.1 per cent it recorded last year.

Themed ‘Transforming the Economy, Empowering People, Building Sustainable Communities for the Good Life’, Minister Jordan said Budget 2019 has presented the government yet another opportunity to highlight its successes and achievements, as it “guarantees equality and inclusivity in resource allocation for all Guyanese.”
He told the House that the target for real growth in the economy for 2018 was 3.8 per cent, but at the end of the first quarter, the outlook for the year was revised to 3.4 per cent, given the lower-than-expected performance in gold and sugar.

However, by the end of the first half of the year, economic activity had picked up in several other sectors, resulting in a robust half-year growth of 4.5 per cent, and an upward revision of the projected annual growth rate of 3.7 per cent for 2018.
“I wish to report that the latest projection for real growth in the Gross Domestic Product (GDP) for 2018 is 3.4 per cent, a significant improvement on the 2.1 per cent recorded in 2017,” Jordan told the House to the loud thumping of desks from government MPs.

EARLY PRESENTATIONS
He spoke about the benefits of early presentations of the budget, a feature that was introduced by the coalition government.
These early presentations, he said, are testimony to the ability of managers to execute their projects and programmes over the 12-month planning horizon, instead of the truncated year that had become the norm in the not-too-distant past.

Jordan said 2019 holds special significance for the country, from at least three standpoints. He said that first, it is the year preceding the observance of the golden jubilee of the republic, and that as such, preparations will begin during 2019 to ensure that this auspicious occasion is celebrated fittingly in February 2020; then, we would get another opportunity to reflect on our journey as a nation, our achievements, our hopes and our aspirations.

During the wrap-up of the budget debate last week, Jordan noted that the government is private sector friendly, and that by extension, the budget, too, was private sector friendly. He repeatedly noted that the APNU+AFC government has not increased “a single tax” since assuming office in 2015.

Jordan said the opposition was not facing reality when it comes to Guyana’s economic performance under the coalition government.
Defending Budget 2019, the minister cited as an example, the purchasing of oil on the international market. He explained that claims made about prices falling did not reflect the reality of the local market.

Guyana was hampered by the fact that its oil and petroleum purchases were constrained, since it was a small buyer and its facilities could not take up larger tankers that could have been berthed locally. “Prices were set when our vessels berthed overseas, and the price on that day was what had to be paid,” Minister Jordan explained. The fact that sugar prices were low despite the advent of new markets must not be forgotten, the minister noted.

PAST PERFORMANCES
The opposition’s reference to the past performances of commodities such as gold was reflective of those past days, he posited. The price of rice, for example, the minister reminded the House, was still lower, though favourable with the Panamanian market, than what obtained for the defunct Venezuelan market. “The world’s economies have changed, and many should be aware of the various factors that drive and shape prices;and Guyana’s was no different,” Minister Jordan said.

He assured the House that the local economy will improve even further with the advent of oil within two years. The opposition had no suggestions or alternatives, Minister Jordan pointed out, “except for MP Odinga who suggested that the budget be taken to the Select Committee.”

The economy is projected to expand by more than three per cent for 2019, according to the finance minister.

Budgeted allocations for several government agencies in 2019 were as follows: Ministry of Public Health, $35.9B; Ministry of Social Protection, $18.2B; Ministry of Communities, $8.3B; Ministry of Public Telecommunications, $4B; Ministry of Natural Resources, $1.44B; Ministry of Indigenous Peoples’ Affairs, $1.9B; Ministry of Foreign Affairs, $6.8B; Ministry of Public Infrastructure, $38.5B; and Ministry of Agriculture, $17.1B.