-says current process is a sham
AFC MP Sheila Holder is calling for the entire budget preparation and debate process to be revamped for a more consultative process, since she believes the current system is a “sham” that is not working.

Speaking to Stabroek News on Thursday, during a break in the budget debate, Holder stated that she had deliberately not delivered a lengthy speech on Monday when it was her turn to speak on Budget 2010. Holder’s presentation consisted of a series of questions highlighting inadequacies in the administration, even as she called for the entire budget preparation process to be adjusted.

Holder described the current process as “a sham” because “it is not delivering on the expectations of the people, in terms of their development aspirations and ameliorating some of the issues facing them in the society.” She said issues such as unemployment and under employment needed to be adequately addressed. She noted that the most recent Economist Finance and Economic Report on Guyana, had identified an alarmingly unemployment rate in the country.

The budget is supposed to look at the concerns of the society and to come up with fiscal, social and economic solutions for these issues, Holder stated.  In order for this to happen, Holder believes that there needs to be interaction with specific sections of the society like is done in other countries such as Canada.

According to her, the Budget should only be constructed after interactions with members of the business sector, NGOs, Women’s groups and other sections of civil society. She believes that only after hearing the concerns of the various sectors, will Cabinet will be able to meet their concerns.

Holder is calling for a system, where the Finance Minister is required to submit an outline of proposed expenditure to the Economic Sector Committee of the National Assembly prior to the final budget being presented, so that it could be subject to intense scrutiny. During these deliberations, representatives from various sectors of civil society would be invited and changes could be suggested.  She said that following this process, the suggested changes will be submitted to the Finance Minister who would take it to the Cabinet for them to review.  These suggestions should serve as a guideline to Cabinet, when it is preparing its estimates, Holder stated.  Subsequently, a report outlining these estimates should be laid in the National Assembly, after which it is debated.

Holder believes that this new system would help “to reduce the political contemptuous” that is currently being played out in the National Assembly.

“Nothing will come from this exercise,” she said in direct reference to the ongoing budget debates.

She said that there needed to be the political will to change the current system, adding that “just staying stagnant and doing what we’ve always done even though it’s not working keeps us backward, keeps us underdeveloped.”