During a recent hearing on the examination of the 2016 public accounts, the Public Accounts Committee (PAC) questioned the Regional Executive Officer (REO) of Region 2 on the use of some $250 million from the Region’s current appropriation for 2017 to finance the cost of several projects of a capital nature, without the requisite approval. The REO admitted to the breach but contended that through prudent management, the Region was able to effect savings which were used to carry out emergency works, including the construction of a bus shed, a health centre, two fences, a sitting area, and a landing in Pomeroon. (KN, 5 April 2018)
By Section 22 of the Fiscal Management and Accountability Act, the Minister of Finance may reallocate spending authority for a budget agency, subject to the following restrictions:
(a) appropriations may only be varied across programmes within the budget agency to which they relate;
(b) appropriations for current expenditures may be moved to appropriations for capital expenditures, but not the reverse;
(c) the amount of an appropriation for any programme may not be varied by more than ten per cent of the total amount appropriated for that programme; and
(d) no new appropriations can be created.