Analysis of expenditure
Source: Tables 6 &7 & Appendix A of National Estimates
Introduction
The priorities adopted by the Government as set out in Part 5 Targets for 2022 in the Budget Speech find their place in the Estimates of Revenue and Expenditure. This was discussed in Government of Guyana Financial Plan 2022 of this publication. In this segment of Focus, we summarise and analyse the spending choices by the Cabinet, set out in the Estimates and which are subject to a debate and approval in the National Assembly. As the pie chart above shows, spending is done by Budget Agencies including Ministries and Departments, Constitutional Bodies, Regions and via subventions and subsidies made through various Ministries. Certain spending is automatic and does not require parliamentary approval. As the Constitu-tion states, these are direct charges on the Consolidated Fund, but the actual amounts are a matter of some negotiation.
Current Expenditure
In order of spending, the top five Budget Agencies are the Ministry of Finance, the Ministry of Health, the Ministry of Ministry of Human Services and Social Security, Ministry of Education and the Ministry of Home Affairs. It should be noted of course that the spending may not be actually done by the Budget Agency with the Ministry of Finance itself being a good example with its subvention to the Guyana Revenue Authority.
Source: Budget Estimates, Volume 1, Table 6.
Ministry of Finance
The two Programmes under the Ministry of Finance are Policy and Administration and Public Financial Management Polices and Services, budgeted to spend $34,766 million and $13,702 million respectively.
The two largest items of expenditure of Policy and Administration are Other Employment Costs and Subsidies and Contributions to Local Organisations. The principal subvention recipient of the Ministry of Finance remains the Guyana Revenue Authority which is slated to receive $8,070 million of the Ministry’s subvention budget. The Budget provides $6,300 million for statutory pension and gratuities and a provision of $4,845 million for pension increases.
Ministry of Health
The Ministry of Health has eight programmes for which expenditure of $44,157 million is allocated. The single largest Programme is Regional and Clinical Services expected to spend $25,480 million. The two largest items of expenditure are wages and salaries of $7,045 million and subsidies and contributions to local organisations amounting to $14,789 million, principally to the Georgetown Public Hospital Corporation.
Ministry of Human Services and Social Security
This Ministry has three Programmes and is budgeted to spend $39,628 million. Of the three Programmes, Programme Social Services is allocated $38,269 million while Old Age Pensions and Social Assistance make up the single largest item of expenditure, amounting to $36,424 million or 92% of the amount allocated.
Ministry of Education
The allocation for the Ministry of Education is $30,812 million, divided across six programmes including one each for Nursery, Primary, Secondary and Post-secondary education. The three larges programmes are as follows:
Primary: $9,119 million.
Secondary: $8,256 million.
Post-secondary/Tertiary education: $5,613 million.
Ministry of Home Affairs
The Ministry of Home Affairs has six Programmes, budgeted to cost $27,306 million. Of this sum, the Guyana Police Force is allocated $19,709 million or 72% of the total of which wages and salaries account 50%. Of the balance, Overhead Expenses account for $3,268 million and Transport, Travel and Postage account for $2,066 million.
Capital Expenditure
Central Government’s capital expenditure for the year is budgeted at $387.8 billion or 50% of the total budgeted expenditure. The allocation is 50% above the latest estimate 2022 and 271% above 2021 capital expenditure. The Ministries/Departments with the most significant capital expenditure allocations are:
Source: Budget Estimates, Volume 1, Table 8.
The top five allocations from the Capital Budget are discussed below.
Ministry of Public Works
The Public Works is allocated $149.5 billion for expenditure. Please refer to Policies and Targets for some of the major projects proposed for the year. The amounts allocated for the major projects are:
– Rehabilitation of Public and Main Access: $33.9 billion
– Miscellaneous Roads/Drainage: $32 billion
– Highway Improvement East Coast Demerara: $16.6 billion
– East Bank – East Coast Demerara Road Linkage: 10.3
– Linden – Mabura Road and Kurupukari bridge: $10 billion
Ministry of Housing and Water
The Ministry of Housing and Water is allocated a total of $69,149 million. The major projects and allocations are as follows:
– Provision for access roads, building and infrastructure works: $50 billion
– Provision for coastal water supply systems and payment of retention: $12 billion
– Provision for infrastructure development works and housing units: $2.1 billion
Office of the Prime Minister
The Office of the Prime Minister is allocated a sum of $55.8 billion. The major projects and allocations are as follows:
– Gas to Power Project: $43.3 billion
– National Data Management Authority: $6.6 billion
Ministry of Health
The Ministry of Health is allocated $22.9 billion. The major projects and allocation are as follows:
– Health Sector Improvement Programme: $14.6 billion
– COVID-19 Response Programme: $2 billion
– Ministry of Health-Buildings: $1.7 billion
Ministry of Local Government and Development
The Ministry of Local Government and Development is budgeted to receive $16.9 billion. The major projects and allocations are as follows:
– Provision for community enhancement and infrastructure projects
and programmes: $13.1 billion
– Provision for community driven entrepreneurial inventions $1.5
billion.
– Provision for Capital subventions for municipalities and neigh- bourhood democratic councils: $1 billion
– Provision for solid waste management interventions: $1 billion
Ram & McRae’s Comments:
● The allocations show the dominant role played by Central
Government within the so-called semi-autonomous regions, and in
some cases budget agencies. This serves to undermine the regions
and violate the intent of the constitution.
● In 2022, the Government went back to the National Assembly on
three occasions for a total of $95,952 million for additional
expenditure, or 19.1% over the budgeted amount for 2022. The
financial rules provide for better management of allocated funds
by allowing for transfers of previously approved funds. We recom
mend that all budget agencies engage in better planning and
management of the resources appropriated to them by the National
Assembly.
● The increase subvention to the Audit Office is far short of what
that Office will require to carry out its mandate as the Auditors of
the Public Accounts of Guyana.
● The Environmental Protection Agency (EPA) has been allocated
the sum of $676 million, a 1% increase over 2022. Clearly, the
government is not serious about a competent EPA.
● With its increasing workload Housing is among the top spenders
among government ministries. It also derives revenue from the
sale of house lots and houses. It is unclear how those revenue is
accounted for.
In this section we address the measures announced by the Minister
