…Min. Jordan says PPP playing games
…asserts gov’t is acting in confines of the law

IT is foolhardy for the opposition to suggest that the country should move forward into 2020 without preparations for a new budget when the year is already anticipated as the turning point of transformation for the country.

That aside, the government is acting within the confines of the law with its issuance of a Finance Circular to heads of budget agencies and departments instructing them to begin preparations for budget 2020.

Following a letter to the media from People’s Progressive Party (PPP) Member of Parliament (MP), Juan Edghill, condemning the same on Wednesday, Minister of Finance, Winston Jordan, had reason to respond.

Edghill had referred to the circular as an “illegality” and the government as “disrespectful in its conduct” claiming that such and act would “create an environment for collision and confrontation” rather than the well-being of Guyanese.

Speaking to the newspaper on Thursday evening, Jordan corrected the MP’s misguidance. “The government is acting within the law. There is nothing in any law that says the government cannot prepare a budget,” he stated. “The budget continues irrespective of political situation in Guyana. The idea here is that if the current government forms the next government, it’s that government’s budget. If another [Party] forms the government then they can throw the whole budget out and start a new one or they can amend as they see fit. But there’s nothing stopping the budget process.”

Edghill, referencing the Fiscal Management and Accountability Act, had also claimed that the 2020 Budget ought not to be finalised until 90-120 days in the New Year.
“The provisions in the Fiscal Management and Accountability Act provide for a Budget by March/April, 2020; there is no crisis. A Budget which defines the vision, priorities and programs for the prosperity and development of all the people of Guyana by a government that is legal, constitutional and democratically elected through free and fair elections, is the only one that will be accepted,” he stated.

In turn, Jordan explained that the 2019 Budget lapses at the end of December 2019 and, while the Constitution provides for an extension, this is more of a grace period than an obligation.

“Notwithstanding the Constitution provides for a budget to be laid in the National Assembly 90 days into the New Year, that is more a contingency provision than a provision that should be acted upon each year…there’s nowhere in the world where you would continuously present a budget 90 days into the new year and have it passed 120 days in the new year and expect to execute the budget in a financial year that starts January 1 and ends December 31,” he said.

Jordan deduced that Edghill is simply playing political “games” and, much like the opposition at large, must do all he can simply to oppose the actions of the government.
What the opposition fails to realise, the Finance Minister said, is that 2020 is a major year for the country and now is not the period for the country’s leaders to take lightly the specific provisions which must be put in place.

“If we don’t start the budget then we risk going in to the New Year without a budget in which case you will be limited to one-twelfth [of the expenditure] on the current side and would be restricted to no new projects on the capital side; only roll over projects would be able to be implemented. In a time when oil resources are coming, [it would be] stymieing progress in the country,” Jordan said.

“The Natural Resources Fund (NRF) Bill, for example, prescribes the manner of withdrawal; manner in which resources must go to the budget; the manner of estimating how much monies will go to the budget and what you would do with these monies, there are guidelines in there. So, we can’t wait on the political situation to settle itself. Unless a court of competence jurisdiction tells us otherwise – which I find hard to believe that they could – then we will continue, as a responsible government, to initiate the budget process and take it through as far as it could.”

He also reminded that if the Parliament is dissolved before the budget is presented it would go on hold and would not be able to be presented until a new Parliament comes on stream.
The Minister added that while Opposition Leader, Bharrat Jagdeo, has most recently urged Heads of Budget Agencies and Departments to disregard the financial circular, he doubts this will occur.

Jordan said: “They don’t work with Mr. Jagdeo; they work with the current government. Mr. Jagdeo is not in power, Mr. Jagdeo is the opposition leader…we don’t think, any at all, Permanent Secretaries are going to bother with Mr. Jagdeo because, as technical people, they are not involved in the political process.”