National Assembly passes Budget 2020

The $329.5B Emergency Budget was passed in the National Assembly Friday night after 10 days of debates and meetings of the Committee of Supply to consider the Estimates.

Prepared in a record 21 days, it was laid by Minister of Public Works, Hon. Bishop Juan Edghill, who was delegated the responsibility for finance during the budget period.

Some $183 billion for the period January 1 to September 30, 2020 had to be included in the budget to cover the previous administration’s spending which lacked parliamentary approval and oversight.

During debate on the Appropriations Bill, Minister Edghill rebuked the former administration for dodging snap-elections after the successful passage of the no-confidence motion on December 21, 2018, which led to the unauthorised spending.

Referencing the dissolution of the 11th Parliament, Bishop Edghill said the caretaker government’s spending should have been exclusively for public services. However, he cited glaring evidence of spending outside of the law.

“Public services can’t be new capital projects like an $823 million school to a financier of your party on the Linden-Soesdyke Highway,” Minister Edghill said, adding that “The intent and the spirit of the law was not followed.”

Other examples of the APNU+AFC unlawful spending, included the $1.6 billion spent to convert the Ocean View Hotel into an infectious diseases hospital without approval.  This project has led to the current Administration footing a $13 million per month rent.

According to Attorney General and Minister of Legal Affairs, Hon. Mohabir Anil: “We are putting back the accounting mechanisms in place, as is required by the Constitution.” The Attorney General also shot down statements made by the Opposition that former Finance Minister Dr. Ashni Singh had acted out of the confines of the law by illegally spending $4.4billion after Budget cuts in the 10th Parliament.

According to AG Nandlall, Chief Justice Ian Chang ruled that we can restore the cut and bring it back into the Parliament for approval in the form of a Statement of Excess, in compliance with [Article] 219.”

The Attorney General maintained it is the National Assembly’s duty to correct the accounting record, after which it is up to the Auditor General to recommend actions to be taken, after an audit report of 2020 is complete.

Budget 2020 has been hailed a success, not only for the swift manner in which it was brought to the National Assembly, but because of the extensive measures included to alleviate the burdens placed on taxpayers by the APNU+AFC.

Major takeaways include the $25,000 COVID-19 cash grant along with sweeping tax reliefs such was the removal of the 25% corporate tax on education and health and the removal of value-added tax on medical supplies.

Some of the most significant VAT removals are on electricity and water, hinterland travel, building and construction materials and cellular phones.

The Emergency Budget also saw $150 million set aside to support COVID-19 frontline workers along with the resumption and simultaneous increase of the cash grants for school children to $15,000 and doubling of the uniform allowance to $4,000.

Further, the extensive list of relief measures includes a $5 billion allocation to the Guyana Sugar Corporation to resuscitate the sugar industry after years of neglect and mass layoffs by the former Administration. Enmore, Rose Hall, and Skeldon estates will be reopened in a phase approach.

With much focus on fostering the growth of the small business sector, $100 million has been budgeted for the Small Business Development Fund, $212.1million for the Small Business Bureau, and a$105 million allocation was earmarked for the Sustainable Livelihood and Entrepreneurial Development programme.

Budget 2020 was passed under the theme “Our Plan for Prosperity: Protecting our People in a COVID-19 Environment; Strengthening Democracy and the Rule of Law; Incentivising Economic Growth and Job Creation; and, Enhancing Welfare.”

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