Guyana Chronicle
June 16, 2001

It is presented under the theme: "Moving Guyana Forward Together" and is expected to improve the standard of living of all Guyanese and ensure continued social development and economic growth.

This year's budget is conditioned by domestic and foreign challenges that have and will continue to affect our economy as well as the negative effects of the post-elections unrest. There are no new taxes or any burdens on the Guyanese people. Based on the measures outlined and the resources allocated to various sectors, the economy is projected to grow by 2.8 per cent this year.

The budget has something for everyone. The following is a brief look at what's in the 2001 Budget for you:

EDUCATION: $11.8 billion has been allocated to the education sector. This year, more education facilities will be constructed and/or rehabilitated. These include nursery, primary, and secondary schools, student dormitories, teachers' quarters and practical instruction centres in areas such as Skeldon, Reliance, Stanleytown, Annai, Karaburi, Manawarin, Friendship, Mahdia, Santa Rose, Buxton, Jawalla, Dora and Wakapoa.

There will be continued focus on teacher training as well as curriculum development and textbook production. Over $250M will be spent to expand the University of Guyana Berbice Campus and purchase equipment, and to construct a new building, design an Information Technology programme and purchase equipment for the Turkeyen Campus.

Efforts will continue to expand Information Technology in schools and other learning institutions.

HEALTH: $5.3 billion has been allocated this year for the health sector. There will be continued emphasis on taking quality health care to all parts of the country. For example, dental clinics will be set up at Moruca, Matthew's Ridge, Sophia, Lethem, Kato and Paramakatoi, while health posts will be established at Tassiwini, Itaballi, Maikwak, Orinduik, and Kuduwini.

Further, Ithaca, Bush Lot and Calcuni will benefit from expanded health care facilities. Also there will be the rehabilitation of the Kamarang, New Amsterdam and Skeldon hospitals. Again, resources have been identified to ensure adequate medical supplies and drugs for all public health facilities.

More than $450M is set aside to fight and prevent HIV/AIDS, and Tuberculosis, and for a health information management system for the next two years.

HOUSING: The housing drive will be accelerated this year with the start up of the US$30M Low Income Settlement Programme. This programme will, in addition to providing much needed institutional support to the Central Housing and Planning Authority, focus on upgrading squatter settlements in Tuschen, Zeelugt, Diamond, Golden Grove, Sophia and Amelia's Ward.

Additionally, $400M has been earmarked to upgrade existing housing schemes in Regions 2,6,7 and 10 such as, Parfatih/Harmony, Belle West, Lowlands Hope, Onderneeming, Haslington and Bath.

JOB CREATION & INVESTMENT: The budget has made special provisions for various initiatives that will lead to investment and job creation across Guyana.

There will be support for investments in small-scale activities such as traditional agriculture and fisheries, mining and mineral exports, woodworking, furniture manufacture and carpentry; shop keeping and home-based agro-processing which are aimed at generating significant surplus to be disposed of in the domestic and international markets.

For industrial development, $225M will go towards the development of the industrial sites at Eccles, Coldingen, Lethem, Belvedere, New Amsterdam and selected new areas.

In addition to these, other projects that can trigger self-employment or the establishment of micro enterprises, for which provision has been made in the budget are: the Linden Economic Advancement Project (LEAP), which is a $2.3 billion programme, over four years, to provide a credit fund, vocational training and the creation of a business incubation machinery for the Linden community, and $425M to support small economic ventures.

To improve links and communication, more than $1.3 billion will be spent for capital investment in this area to facilitate trade and investment.

This will lead to a number of airstrips, and stellings will be upgraded. These are located at Anna Regina, Parika, Imbaimadai, Albion, Leguan, Parika, Wakenaam, Stanleytown, Vreed-en-hoop, Georgetown, Charity, and Moleson Creek.

POVERTY REDUCTION: More than $2 billion will be invested in the area of poverty reduction.

The Government intends to build on the interim Poverty Reduction Strategy Paper through countrywide consultations.

The anti-poverty programmes include: the Social Impact Amelioration Programme - $1.1 billion; the Poverty Programme - $500M, targeting mainly distressed communities; the Poor Rural Communities programme - $188.4M; the Basic Needs Trust Fund programme - $100M; and the President's Youth Choice Initiative - $240M.

The very large public sector investment, maintenance and poverty programmes of the Government will generate many jobs, of varying skill categories, for Guyanese throughout the country.

AGRICULTURE: Central Government has allocated more 6han $2.1 billion for this sector.

Out of this, $1Billion for the improvement of drainage and irrigation system.

Two diesel pumps will be installed at Mibicuri. Rehabilitation work will be done to the D&I systems at Mocha Arcadia, No. 52-57, Handsome Tree, Ann's Grove, Goed Intent/Sisters, La Union, Parika, Golden Fleece, among others. $143M will be spent on repairs to the East Coast Demerara conservancy.

The Government will support and lead initiatives to secure viable markets for agricultural products. Support will be extended to small to medium rice and other crops farmers, which includes marine fisheries and freshwater aquaculture, beef and dairying, pork, poultry and egg production, and the vast array of non-traditional crops with which our country is endowed.

The development of the Intermediate Savannahas Programme will be intensified as well as the creation of farmers' bodies in the form of Water Users' Association, a revolving credit scheme, and for civil works in selected areas in Regions 2 and 3.

The newly-formed Lands and Survey Commission will address outstanding land allocation and land use matters in the agriculture sector and is expected to be more responsive to farmers' needs.

CRIME FIGHTING & SECURITY: Resources have been allocated for the recapitalisation of the Army.

Sums have been allocated for the repair and purchase of aircraft, and the acquisition of high-seas patrol boats. In addition, the Army has been the beneficiary of four 44-ft motor life boasts, which were acquired from the United States Department of Defense.

As part of the continued efforts to boost the crime fighting capacity of the Police Force, a number of Police stations, including Karasabai. Lethem, and Orealla will be repaired and further equipped.

More vehicles for crime fighting will be purchased for the force. A new Police outpost will be established at Sophia, Greater Georgetown.

For fire fighting, there will be a new fire station at Anna Regina, while two tenders at the cost of $130M will be purchased.

WATER & SANITATION: About $2.5 billion will be spent in the water sector.

This year will see the start up of the construction of the LBI inter-connected system; the completion of the Pouderoyen and the Rose Hall inter-connected systems and the second phase of the New Amsterdam system; the upgrading and extension of the Leguan and Wakenaam systems; and continued assistance to the Linden system.

Additionally, other stand-alone systems will be refurbished countrywide, including Yakusari, Williamsburg, Lesbeholden, New Hope, Caledonia, Timehri, and Covent Garden on the coastland.

Fifty hand pumps and windmills will be installed in regions 1,6 and 9, including areas such as Quarrie, St Ignatius Kudunwini, Tigerpond, Taushida and Gunns Strip.

In Georgetown, Phase I of the GS&WC project, which will entail further upgrading to the distribution network in North Ruimveldt and Sophia and the installation of water meters in Queenstown, Bel Air and Lamaha Gardens, is to be completed. Start-up activities of Phase II commence this year.

This is a further US$25M to continue the expansion of the distribution network and to renovate and refurbish the sewage system.

ROADS & BRIDGES: The entire integrated coastal highway linkage has come to an end.

This year will see extensive construction, re-construction, re-furbishment, and or upgrade of our highways, and the vast network of community and farm-to-market roads and accesses.

These include: re-surface the Mahaica to Rosignol link; create a four-lane link from the Demerara River Bridge into Georgetown and re-surface the West Coast Demerara Highway. The road linking Crabwook Creek to the Guyana-Suriname Ferry Terminal will be upgraded.

For the community roads improvement, the budget has allocated over $1 billion this year. This will see rehabilitation to the Bartica-Issano, Black Bush Polder, Mabura- Lethem roads and several roads countrywide, including roads at Hague, Enmore, Buxton, Mara, Nurney, Bush Lot, Champagne, and Bath.

In Georgetown, the rehabilitation of Critchlow Avenue, Vlissengen Road, Thomas Road and Mandela Avenue are among those targeted for improvements.

All of the bridges on the East Coast and East Bank of Demerara, and West Coast Berbice, including the main Mahaica and Mahaicony bridges, are scheduled for rehabilitation over the next four years. Already, contractors are being pre-qualified for the first phase of the project which includes 57 bridges.

Regarding the Berbice River Bridge, negotiations have been re-started with Ballast Needam.

Also, $1.6 billion will be spent to rehabilitate weakened sea defence structures at Hague, Met-en-Meerzorg/De Kinderen, Reliance, Cornelia Ida, Bel Air-Monchois, Trafalgar, and Brahn-No. 40 village.

AMERINDIAN DEVELOPMENT: In addition to central government and regional expenditure on social and physical infrastructures and economic projects in Amerindian communities, this year will bring an increase in the Fund for Amerindian Development.

Some $72M will be spent on special projects to address the needs of Amerindian communities. Also, the land demarcation exercise will continue.

The 2001 Budget will lead to an improved or expanded education, health, and communication services in the various communities. The special poverty reduction initiatives are to benefit the Amerindian communities.

RURAL ELECTRIFICATION: The Government has contributed $200M to a Rural Electrification Project and is negotiating US$25M from the Inter-American Development Bank (IDB) for an Unserved Areas Electricity Project that will provide 55,000 customers with electricity over a five-year period.

Both projects will be implemented by the Guyana Power and Light Company Limited and will start in Region Six this year. The Government will examine all areas for lowering the cost of electricity, including the possibility of developing Amalia Falls as a hydropower site by 2005, and pursuing aggressively offshore exploration for fossil fuels. (Ministry of Finance)