By Wendella Davidson
Guyana Chronicle
June 16, 2001

A $64.7 BILLION national budget for this year reflecting no new taxes, fees, fines or other fiscal imposts, was yesterday unveiled in the National Assembly by Finance Minister, Mr. Saisnarine Kowlessar.

The 2001 annual estimate of national revenue and expenditure themed "Moving Guyana Forward Together", was conditioned by domestic and foreign challenges that have and will continue to affect the economy as well as the negative effects of post-elections unrest, he said.

It reflects a $2.5B increase from the $62.2B presented last year.

And, according to the Finance Minister, "the budget has something for everyone."

To this end, in spite of the negative growth performance which the country experienced last year, the problems encountered by major industries and political instability that affected economic activities, the Finance Minister said the Government has made provisions for the payment of wages, salaries and pensions for 2001.

Delivering his second budget speech, but before a National Assembly without members of the main Opposition People's National Congress Reform (PNC/R) who earlier walked out behind Opposition Leader, Mr. Desmond Hoyte, the Finance Minister said the presentation of a budget that contains no new taxes or burdens on the Guyanese people "is a fitting way to start this new term of Government."

The PNC/R Members of Parliament walked out in protest at the appointment of new Attorney General, Mr. Doodnauth Singh as he was about to take the oath as a Member of Parliament, from Clerk of the National Assembly, Mr. Frank Narain.

Kowlessar, dapper in a dark coloured suit complemented with a tie, concluded his almost one hour 45 minute presentation with the words "May God Bless Guyana..."

He said the broad policies and programmes outlined in the budget attest to the Government's commitment to move the country forward for the benefit of all Guyanese.

He reminded too that nation building is by no means an easy task, especially for a country like Guyana with its difficult past, a legacy that continues to be a source of pain for all the country's citizens who stand not for conflict but for goodwill, peace, progress and prosperity.

"For too long we have talked about Guyana's potential. Now is the time for us to take drastic actions to convert potential into reality by harnessing our natural and human resources for the common good", he said.

He added that in so doing, Guyanese will be honouring the aspirations of their ancestors who came from diverse parts of the world, under trying conditions, who lived a life of toil and sacrifice, in the rigours of a tropical climate, for the promise of a better Guyana for succeeding generations.

"Let us not make their toils in vain by abandoning the rule of law and literally embracing the laws of the jungle," the Finance Minister urged, asking why squander the future by conflict.

"Learning from our past, we must now look to the future with renewed optimism. Let us, with one purpose, retool our proverbial swords into plough shares. Let us work to create wealth and opportunities for a better today and a brighter tomorrow for all of us.

"I call on all Guyanese to embrace our common vision and earn the satisfaction of a job well done," he said.

Referring to the March 19 elections, which saw the People's Progressive party/Civic (PPP/Civic) Government returned for another term, Kowlessar said it was imperative for the Government to work with the political opposition and other groups in the society, to create a lasting environment of peace, trust and enduring stability.

"Without a doubt, these are vitally important prerequisites for attracting investment that is so necessary for the continuation of economic progress and social development in our country," he added.

He appealed to Guyanese to eschew the desire to destroy and destabilise the country, and to instead embrace the extended hands of friendship, love and cooperation, "united in purpose to build the type of Guyana of which we continue to dream."

As in the 2000 Budget, the Education sector takes the lion's share of $11.8B, which will be used to construct or rehabilitate more education facilities including nursery, primary and secondary schools.

Student dormitories, teachers' quarters and practical instruction centres are also included.

Focus will also be on teacher training along with curriculum development and text-book production, while $250M will be used to expand the University of Guyana campus in Berbice, he announced.

Efforts will also continue on expanding Information Technology in schools and other learning institutions.

In the Health sector, allocation of $5.3B will allow for the continued emphasis on taking health care to all parts of the country.

Resources have also been identified to ensure adequate medical supplies and drugs for all public health facilities.

More than $450M has been set aside to prevent HIV/AIDS and tuberculosis and for a health information management system for the next two years.

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

Another $400M has been earmarked for existing housing schemes in Regions Two (Pomeroon/Supenaam); Six (East Berbice/Corentyne); Seven (Cuyuni/Mazaruni) and Ten (Upper Demerara/Berbice).

Under Job Creation and Investment, the budget has made special provisions for a number of initiatives that will lead to investment and job creation across the country.

There will also be support for investments in small-scale mining activities, while $225M will go towards industrial development in industrial sites at Eccles, Coldingen, Lethem, Belvedere, New Amsterdam and other new selected areas, Kowlessar said.

The $2.3B Linden Economic Advancement Project (LEAP), $243M for the support of small ventures and $1.3B to improve communication links including the upgrading of a number of airstrips and stellings are also covered under this sector.

An allocation of more than $2B has been made under Poverty Reduction and according to Minister Kowlessar, the Government intends to build on the interim Poverty Reduction Strategy Paper through countrywide consultations.

A number of anti-poverty programmes such as the Social Impact Amelioration Programme (SIMAP), Basic Needs Trust Fund ($100M), Poor Rural Communities Programme ($188.4M) and the President's Youth Choice Initiative ($240M), will also benefit.

The Agriculture sector has received a $2.1B allocation, of which $1B will be used for the improvement of drainage and irrigation systems.

In addition, the development of the Intermediate Savannahs Programme will be intensified, along with the creation of farmers' bodies in the form of Water Users' Association.

Also, the newly-formed Lands and Surveys Commission will address outstanding land allocation and land use matters in the agriculture sector, Kowlessar said.

The Finance Minister announced too, that while resources have been allocated for the recapitalisation of the Army, more vehicles will be purchased to aid crime fighting in addition to equipping and repairing a number of Police stations.

A new Police outpost is to be established at Sophia in Greater Georgetown and a fire station at Anna Regina, Essequibo.

Two new fire tenders, valued at $130M, will also be acquired.

Kowlessar announced that an extensive construction, re-construction, refurbishment and or upgrading of the country's highways will be embarked on.

Bridges on the East Coast and East Bank Demerara and West Coast Berbice, including the main Mahaica and Mahaicony structures, are scheduled for rehabilitation over the next four years, he said.

Pre-qualification of contractors for the first phase which includes 57 bridges has begun, the minister said.

Meanwhile, negotiations have restarted with the Ballast Nedam company for the construction of the Berbice River Bridge.

The Water sector has been allocated some $2.5B which will facilitate the continued expansion of the distribution network and the renovation of the sewage system.

Funds will be increased for Amerindian development and according to Kowlessar, $72M has been set aside to be spent on special projects and address the needs of Amerindian communities.

The Government, he added, has contributed $200M to the 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, the minister said, 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 aggressively pursue offshore exploration for fossil fuels.

A confident Minister Kowlessar projected that real growth is set to return this year with the economy expected to grow by 2.8 per cent premised on strong growth in both the traditional and non-traditional sectors.

To this end, he said sugar output should increase by 6.9 per cent to 292,297 tonnes; rice production by 20 per cent to 350,000 tonnes following a decline in 2000 to 292,000 tonnes; and in agricultural activities, other crops by two per cent; livestock four per cent and fishing four per cent.

But in the forestry sector a decline of 7.7 per cent is projected, reflecting the continuing difficulties faced by operators in the sub-sector, the minister said.