Facing scrutiny from the main opposition over the need for supplementary financing for a second time in five months, the Government yesterday used its majority to approve $47.3 billion in additional expenditure and highlighted a range of projects including 1,000 community roads.
Defending the amount that was being sought before the National Assembly, government ministers explained that the money was required to accelerate infra-structure projects and cushion the rising cost of items and services such as fuel, urgent drainage and irrigation works, dietary supplies and security services. The items and services, it was explained when procured, amounted to a cost higher than projected for in the 2022 “historic” $552.9B national budget.
During the parliamentary sitting, the Committee of Supply of the National Assembly considered Financial Papers No 2 and No 3 of 2022. They were both tabled in the House by Senior Minister with Responsibility for Finance Dr Ashni Singh at the November 30 sitting.
Financial Paper No 2 sought the approval of spending for $2,904,841,406 from the Contingency Fund for the period August 15-November 29, 2022 while Financial Paper No 3 sought supplemen-tary provisions for current and capital expenditure of $14,776,553,723 and $29,666,610,431 respectively.
During the consideration of the estimates before the Committee of Supply, it was disclosed that some $18.2 billion was provided to the Ministry of Public Works for the provision of additional resources for the construction and upgrading of miscellaneous roads in communities across the region. In the sum approved, $938.2 was also provided for the advancement of civil works on the Kurupukari bridge project, which is a part of the Caribbean Development Bank-funded Linden to Mabura Road Project.
1,000 roads
During the debate, Public Works Minister, Juan Edghill, in response to queries from the opposition side of the House, said they are currently construct-ing and upgrading over a 1,000 roads in communities across the country.
He explained that they are working with over 900 small and medium-scale contractors to ensure the project is a success.
“We are working on an expanded programme… we are building the capacity of medium-size contractors… we are creating history in Guyana’s road development project,” Edghill said.
He also stated that the construction of the roads is being done in collaboration with the ministries of Local Government and Regional Development and the Ministry of Housing and Water.
“We still have more people who want more roads and we are committing. Sir, we intend to fix everybody’s roads because every citizen in every community, in every region, deserves to be driving, walking on the best roads,” Edghill noted.
Additionally, some $297 million was approved for the Guyana Civil Aviation Authority (GCAA). Responding to questions from APNU+AFC MP David Patterson, Edghill said the indicated sum is required to allow the smooth flow of operations. He explained that the GCAA is operating with a deficit due to the COVID-19 pandemic. The majority of the agency’s revenue over the years was generated from navigational services to aircraft. However, he stated that with limited flights within Guyana airspace, the agency’s revenue has dipped. In his response, Edghill did not miss the opportunity to blame Patterson for allowing the agency’s almost one billion dollars in savings to be depleted.
The House also approved $263.3 million to the Transport and Harbours Department to cushion rising fuel costs. This is necessary in order to keep fares of government operated ferries and water taxis at an all-time low for passengers.
The ministry also received approval for the sum of $70M to cover the cost of security services at its offices.
Power stations
Minister in the Ministry of Public Works, with the responsibility for energy, Deodat Indar defended the requested $1.3 billion under the Office of the Prime Minister.
He explained to the House, the additional sum was to cover fuel expenses at power stations in Linden, Kwakwani, Lethem, Mahdia, Port Kaituma, Mabaruma and Matthews Ridge.
As he provided responses to questions from the opposition side of the House, Indar said fuel prices have increased significantly from when the 2022 budget was prepared and passed. He said prices have risen by 65 per cent above the estimated cost.
With the government making the decision that all power companies will absorb the increased cost for electricity, he noted the supplementary amount is necessary to keep the power station operational.
According to the financial paper, the Linden electricity company will receive $927.5 million, $110.7 million will go to the Lethem electricity company; $20 million for Matthews Ridge, Mabaruma will receive $106 million; Kwakwani $103.2 million; $76.8 million for Port Kaituma and $49 million for Mahdia.
“These power companies operate on subsidies and the original subsidies earlier this year did not foresee that type of market fluctuation,” Indar underscored.
Opposition Members used the opportunity to enquire whether the budgeted sums will cover maintenance at the power station. However, Indar responded in the negative stating that the supplementary sum was to cover the cost of fuel for November and December.
National Drainage and Irrigation Authority
Under the Ministry of Agriculture, some $3 billion was approved, with one billion dollars going to the Guyana Sugar Corporation and the remainder going to the National Drainage and Irrigation Authority (NDIA).
Agriculture Minister Zulfikar Mustapha disclosed to the House that from the allocated sum, $46 million will go to Region Two, $272 million to Region Three, and $588 million to Region Four. Region Five was allocated $97 million, Region Six $228 million, Region Nine $9 million and Region 10 $70 million.
He noted too that $426 million was allocated to undertake mechanical works to NDIA equipment. With this ministry also hit by rising fuel costs, Mustapha said $261 million has been set aside for fuel.
The Ministry of Human Services and Social Security received a sum of $53 million to cover the cost of dietary supplies at the Hugo Chavez Centre, the night shelter and state-operated child care facilities. Security services were also catered for in the supplementary budget.
The Ministry of Home Affairs received $427, 510,566 for the rehabilitation of Guyana Police Force facilities across the country, fuel, dietary supplies, drugs and medical supplies among others.
A number of other agencies including the Ministry of Local Government and Regional Development and the Guyana Defence Force were also recipients of supplementary provisions for various projects.
