"Social sector performances in 2002 were as expected and continue to earn Guyanese and Guyana international commendation. (For the) productive sector in 2002, the picture was mixed, but overall there was some recovery from the 2001situation," Dr. Luncheon indicated.

Cabinet has also reviewed the issue of globalisation and trade liberalisation and its impact on the local economy, noting the need for restructuring and modernisation of local industries to become competitive in the emerging global economic climate, he said.

The emphasis on restructuring and modernisation of the rice, sugar and public sectors would be reflected in the allocations in this year's national budget.

"The process of globalisation, the moves towards further and further trade liberalisation and the impact on Guyana's economy would be focused with the interventions on restructuring and modernisation of various sectors. These would also be revealed in the 2003 budget. I refer here specifically to rice, sugar, in terms of restructuring, and also the public sector, in terms of modernisation. In 2003 the social sector will continue to receive the same quality of attention provided in 2002," Luncheon said.

As regards the modernisation of the Skeldon Sugar Estate, he indicated that the process is moving apace and work will soon commence as the site is being cleared and the Guyana Sugar Corporation has acquired additional land for expanding sugar cultivation. Tenders are being evaluated for the procurement of machinery, equipment, goods and services that are required for the expansion and modernisation process.

"Skeldon restructuring is ongoing. I was advised at the two-day Cabinet session that work has or will very soon start on the site clearing and site preparation for the new factory and as you well know, the corporation has already acquired the additional acreage of land to expand cultivation. Tenders are being evaluated for the procurement of goods, equipment, services and machinery to construct the factory," he said.

According to him the much anticipated Highly Poor and Indebted Countries Initiative (HIPIC) funding is expected to kick in around the second or third quarter of this year and when it does it will contribute significantly to the economy especially in the social sectors.

He indicated that HIPIC funding was one of the problems that affected the finalisation of preparations for the budget.

"This is one of the problems in the 2003 financial performance, the funding and its absence in many instances delayed the implementation of projects of the 2003 public investment programme. Anticipation is that those funds will be available by the end of the first quarter/second quarter and it would make an impressive contribution to the delivery of goods and services. Similarly, in the social sector, specifically in the Poverty Alleviation Fund. It is an important contribution in the structure of the 2003 budget and the administration's delivery of goods and services," Luncheon reported.

He intimated that the national budget should be ready shortly, as the Government always tries to prepare it within the shortest possible time.