— as House approves $26B in supplementary funds

THE National Assembly on Thursday passed a Supplementary Appropriation Bill which cleared some $5.1 billion that was spent from the Contingency Fund between July and now, and approved $21.4 billion in additional spending to address issues in a number of key areas, including the coronavirus pandemic and the continuation of several cash-grant initiatives.

The Bill, which comprised Financial Paper No. 3 and Financial Paper No. 4 of 2021, was presented to the House by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh.

The minister’s presentation followed hours of questioning by members of the parliamentary opposition, until eventually billions of dollars in supplementary spending were approved one line item after the next.

Some $55.8 million was approved for the Office of the Prime Minister; $42.3 million for the Sustainable Energy programme, particularly for the provision of additional inflows under the Inter-American Development Bank’s (IDB) investment grant for the acceleration of microgrids in Regions One, Two, Seven, Eight and Nine; and $13.5 million for the Telecommunications and Innovation Unit for the purchase of computers for the National Data Management Authority (NDMA).

The Ministry of Finance also received a $4 billion allocation to clear arrears to the Guyana Power and Light corporation (GPL), while the Ministry of Local Government and Regional Development was granted in excess of $16.6 million to facilitate the payment of a mobilisation advance on the City Hall Restoration Project.

The Ministry of Amerindian Affairs also received some $434 million for the provision of additional resources to support projects and programmes that fall under the Amerindian Development Fund.

Meanwhile, as the country braces itself for another period of flooding caused by heavy rainfall, the National Assembly that approved $755 million for the Ministry of Agriculture’s Drainage and Irrigation Authority (NDIA) to procure critical equipment and execute urgent drainage and irrigation interventions all across the country.

Added to that, the Ministry of Agriculture received $125 million for the provision of additional inflows under the World Bank’s loan operation for ongoing consultancies.

The request for $2.4 billion was also approved for the Ministry of Public Works; this covers the reconstruction of the bridges at Issano and Bamia, support for the Sheriff-Mandela Expansion Project, critical sea defence works along the East Coast of Demerara, the provision of resources for a baggage-handling system for the Cheddi Jagan International Airport, and provision of additional inflows under the Indian Line of Credit for the construction of an ocean-going ferry.

As it relates to supplementary support for the education sector, the Ministry of Education received approval to spend $100.4 million for the payment of stipends to trainee teachers attending the Cyril Potter College of Education, while funds were also cleared for the rehabilitation of smart classrooms in Leguan and Essequibo, to procure consultancy services for the North West and North Ruimveldt schools which were destroyed by fire, and for the expansion of some other schools, including the purchase of furniture.

Added to that, the Ministry of Housing and Water received an allocation of more than $7.7 billion to execute infrastructural works across several housing schemes, including support to construct a four-lane highway.
Also, to further strengthen the country’s coronavirus response and boost the capacity of the Infectious Diseases Hospital at Liliendaal, the Ministry of Health was given the go-ahead to spend an additional $3.4 billion for the year.

SECURITY
The Ministry of Home Affairs was approved for $475.7 million to address a number of areas, including the provision of additional resources to enhance the Guyana Police Force’s vehicle fleet, including the acquisition of double-cab pickups; the rental of tower lights, tents and toilets for the Guyana Prison Service, and the provision of dietary supplies for the Guyana Prison Service.

When the supplementary bill was passed, the Ministry of Legal Affairs received some $56.8 million for the provision of inflows under the Inter-American Development Bank’s loan operation for the Law Reform Commission and ongoing consultancies.

The Department of Public Prosecutions was also approved for $50 million, while the Region Two administration (Pomeroon-Supenaam) received approval for $101.6 million to facilitate progress payments on the construction of the Abram Zuil Secondary School.

Nonetheless, funds cleared as part of the Contingency Fund also the one-off grants of $250,000 to thousands of sugar workers who suffered during closure of the sugar estates by the former coalition government, as well as payments of the $19,000 education cash grants for students attending both public and private schools.

In February, the National Assembly had passed the government’s $383.1 billion budget, which had set out a plan for recovery, outlined policies to catalyse rapid economic growth in the near and medium term, and laid the foundation needed to ensure that growth is not transitory, but sustainable for the longer-term.

Budget 2021, the country’s largest budget, was the first full-year budget presented by the People’s Progressive Party/Civic (PPP/C) administration since being elected to office in August 2020.

It came after the emergency budget of 2020, which was prepared under a compressed schedule, and arrived in the National Assembly well into the second half of the fiscal year, as a result of the protracted March 2, 2020 General and Regional Elections.

The overarching aim of Budget 2021 was to initiate investments in catalytic and transformative infrastructure, including energy infrastructure to ensure adequate supply at a competitive cost, and transport infrastructure to improve international connectivity, and unleash domestic production and productivity.