Guyana
(First of 2 parts on the 2009 Budget)
Guyana’s 2009 budget is widely regarded as being overly optimistic. The G$128.9 billion budget – which is 8.1% greater than last year’s - was presented by Guyana’s Finance Minister, Dr. Ashni Singh, last February 9th under the theme “Working Together – Reinforcing Resilience”.
The budget is set against a backdrop of declining global growth, lower foreign direct investment inflows, depressed commodity prices, reduced remittance inflows, slumping stock markets and an unprecedented global credit crisis.
Arguably global economic growth is forecasted to contract in 2009 on the back of a slump in the developed world. However, growth in developing countries is expected to remain relatively strong, albeit lower than in 2008.
Comparatively, Guyana’s economy grew by 3.1% in 2008, even though sugar production declined by 15.1%. Fortunately, rice production was up 10.5%, livestock 7.4%, other agricultural crops 7.7%, mining and quarrying 6.1%, engineering and construction 8.5%, transport and communication 9.9%, distribution 11.8% and financial services 12%.
Evidently, Guyana’s economy was firing on most cylinders in 2008. However, although the Finance Minister expects economic growth to be higher in 2009, he also anticipates a moderation in growth in all sectors, excepting sugar whose production is expected to be the main driver of growth, increasing by 28.2%. On the other hand, rice is forecasted to contract by 7.1% and mining and quarrying by 1.4%. In this sector, the bauxite industry is expected to be worst hit, declining by 7.1% on the back of depressed market prices. Growth in other sectors is projected to be lower than that of 2008.
Therefore, should sugar production fall, then the projection for economic growth would not be realized. Ironically, the significant slump in sugar production in 2008 did not appear to have impacted economic growth, raising questions about the reliability of government statistics.
Throughout the budget speech Singh recognized the challenges that the external environment would present to achieving the stated targets. This would give him leeway next year to squarely lay blame on unfavorable global conditions should the optimistic targets not be met. It was also noted that Guyana’s vulnerability to climate change could add to the challenges.
The budget’s overriding focus is on maintaining macroeconomic stability. Whether or not this could be achieved in the wake of rising debt levels is questionable. In spite of significant debt relief and write-offs of the public debt which stood at US$1.8 billion in 1992 when the PPP/C took office, Guyana’s total debt level – domestic and external - has continued to rise and currently stand at US$1.2 billion. Evidently, the government has relied heavily on borrowing to finance its activities.
In 2009, Guyana’s balance of payments is expected to record a deficit of US$13.9 million, compared to revised surplus of US$7 million in 2008. The current account is projected to decline marginally to US$288.7 million, from US$299.1 million. Export earnings are forecast to decline from US$798.4 million to US$763.5 million, largely due to reduced earnings from gold, bauxite and rice. As a result of a potentially lower fuel bill, imports are also expected to decline from US$1.3 billion to US$1.184 billion. The slowdown in the global economy is also expected to negatively affect remittances from overseas-based Guyanese, as well as foreign direct investment into the country.
The budget does not contain any new taxes. Current revenue is projected to increase by 9.1%, from $82.5 million to $90.3 million, with the value added and excise tax making the largest contribution of $41.3 million – up 11.2% over 2008. Total expenditure will be $127.8 million, comprising of $81.3 million in current and $46.5 million in capital expenditure.
As in previous budgets, the Finance Minister also allocated funds for the modernization of traditional sectors and the development of new and emerging sectors. The increase in capital expenditure from $36.4 million to $46.5 million is due to the government’s focus on improving drainage and irrigation, electricity generation, public safety, pure water supply and the environment.
It has not become normal for budget presentations in Guyana to simply itemize expenditure allocations for a myriad of projects and sectors without adherence to any specific plan of action. This shortcoming allows for poor accountability when things go wrong.
Part 2 will examine budgetary allocations to specific areas.
He would be remembered as one of the vocal persons who challenged the Forbes Burnham regime in the 1970’s. In 1971 he was shot in broad daylight in downtown Georgetown during an attempt to kidnap him. The bullet pierced his lungs, but he fortunately survived the assassination attempt.
Dr Ramsammy was born and bred in the Corentyne. He went on to become an aquatic biologist, and taught at Queen’s College and later was a lecturer at the University of Guyana (UG). Through his political activism he became a founding member of Ratoon, a UG-based pressure group and the Movement Against Oppression. Both of these groups were critical of the political and democratic deterioration of the country under the then PNC government.
He was a close associate of Walter Rodney and was one of the persons instrumental in the formation of the Working People’s Alliance (WPA) in 1974. He was actively involved in many other pressure groups over the years. Professor Clive Thomas described him as "a brave and gallant soldier fighting on behalf of the working people of Guyana."
According to Kaieteur News (KN) Chinese national, Ji Caitao, 28, died on February 11 in a private city hospital after suffering from undiagnosed haemorrhagic dengue fever (DHF) for almost two weeks. She was the first DHF death recorded in Guyana for this year.
The minister confirmed that 115 persons have been diagnosed with dengue for the first five weeks of this year compared to 43 for the same period last year with Georgetown, Lethem and the East Coast Demerara being the most affected areas.
According to Stabroek News (SN) the minister said “We don’t have a crisis as yet but we have to do something to ensure that we do not reach that stage.
“For me, the fact that there is an increasing number is enough for us to act; and so we are going to be taking various actions, including fogging in the epicentre areas,” the minister said.
Since the announcement of Dr Rose’s nomination, there have been concerns raised by many outside of government circles. The main bone of contention is that Dr Rose has been associated with the ruling party and was on their electoral list of candidates and as such his appointment will not enhance public confidence in the Commission.
Khemraj Ramjattan, Chairman of the Alliance for Change (AFC) has said that the nomination of the former Vice-Chancellor of the University of Guyana as Chairman of the Integrity Commission is a despicable act on the part of the nominator. He said he was not personally attacking Dr. Rose but pointed out that it is a well known fact that Dr Rose is a staunch People’s Progressive Party activist, and was even on the party’s electoral list during the last two elections. For this reason, Ramjattan believes that with Dr Rose at the head of the Commission, there will be no independence.
Opposition Leader Robert Corbin has also urged President Bharrat Jagdeo to reconsider Dr. Rose's nomination as chair of the Commission saying the appointment is unlikely to inspire public confidence. Corbin said while Dr. Rose’s affiliation to the ruling PPP/C should not disqualify him from public office, the nature of the Integrity Commission requires a great deal of public confidence given the “highly personal information” on public officials that it would be required to examine.
The Guyana Human Rights Association (GHRA) is also urging the government to withdraw Dr Rose's nomination warning that his alignment to the ruling party would shake public confidence in the body.
SN reported that a PNCR press statement released on February 12, said that this team could consist of recognised local and regional economists who understand the intricacies and complexities of the national and international economy.
It is the view of the PNCR party that there is still time to pursue this course of action, but further delay might limit the range of action which could be taken.
Commenting on the 2009 National Budget the party noted that there is no relief for workers in terms of increased salaries and wages nor a reduction of what it termed “the unconscionable” 16% Value Added Tax (VAT), SN said. The party further added that there is no relief for the business community which most likely will have to shed jobs as the global financial and economic crisis hits home. The party also said that the particular needs, concerns and urgent requirements of the private sector have been ignored.
The PNCR charged that there was a lack of consultation prior to the construction of the Budget. It said that as far as the party was aware neither the trades unions, the private sector nor the political parties were consulted.
Ramson previously held the post from 1997-2001. He said that because he was “called to serve” he chose to respond positively.
He succeeds former AG and Minister of Legal Affairs Doodnauth Singh who recently retired.
Singh had taken up the appointment of AG shortly after Ramson left office in 2001.
Ramson briefly acknowledged that there is work to be done at the AG’s chambers and declared that that unlike other ministers he is always accessible, but not “for any trivial calls”.
Georgetown — Canadian based Immigration Consultant Balwant Persaud, 54, of Robb Street, Bourda, was released on $1.1M bail on February 13, after his attorney moved to the High Court to have him freed. He was denied bail when he appeared before the courts on Feb 12, facing charges of two counts of obtaining money by false pretence and another of fraud. He pleaded not guilty to all the charges.
According to Kaieteur News (KN) it was alleged that on June 11, 2008 Persaud obtained $1.2M from Kampaul Jaipaul by falsely pretending that he could secure a Canadian student visa, knowing same to be false. The second count was that on August 7, 2008, Persaud, also with intent to defraud, obtained $1M from Nadira Mohan under the same pretext, KN reported. The other charge read that on July 5, 2008, Persaud, with intent to defraud, informed a number of students that he can obtain Canadian documents for them, knowing that this could not be the case, KN said. The victims were led to believe that they could gain admission to the Humber Institute of Technology and Advanced Learning and were provided with false admission papers, the paper reported.
KN stated that as Persaud was leaving the court compound he loudly proclaimed that the charges against him were instigated by senior government officials because he had publicized a refugee case involving a Guyanese whom he had successfully represented in Canada.
Georgetown — Several serving members of the Guyana Police Force were recently charged with demanding money by menace from the public.
Bertie Griffith, a policeman attached at the Cheddi Jagan International Airport, allegedly demanded two pairs of gold ear-rings valued $20,000 and US$100 from Vishal Singh on December 14, 2008. He pleaded not guilty to the charge but was ordered to pay $20,000 court cost and to sign a bond to keep the peace for two years, when Singh said that he did not wish to offer any evidence against Griffith.
Meanwhile in another case on February 9, another policeman Brian De Mendonca was charged with demanding $70,000 from Randy Samuels with menace.
And on February 10, four more policemen were charged with demanding money using public menace on February 4. Those charged were Tyron Edwards, 38, of Prospect, East Bank Demerara; Carl Ifill, 40, of Beterverwagting, East Coast Demerara; John Blake, 24, of North Ruimveldt and Jason O’Donahue, 23, of Nabaclis, East Coast Demerara. The policemen were faced with a further charge that they, with intent to steal, demanded the sum of $500,000 from Gavin Shepherd for the purpose of protecting him so he may avoid prosecution for the offence of trafficking in narcotics.
The first three were granted bail while the fourth was denied bail as he was said to be the driver of the vehicle that the other policemen were using when they committed the crime. They all pleaded not guilty to the charges.
And in yet another case which came up on February 11, Constable Bryan Peters and Corporal Robert Semple were accused of demanding money from Lindomar DeBarros, while attached to the Sherima Police Station, Essequibo, on May 6, 2008.
Georgetown — Alli Mohamed, a businessman of Canje, Berbice, was shot in the foot on February 10 when bandits invaded his liquor restaurant and grocery store.
According to the police Mohamed and his assistant, Maneshwar Rampersaud, were about to close the premises when the masked men confronted them with handguns. The bandits relieved them of jewellery, phone cards and $185,000 cash and shot Mohamed on his right foot before escaping.
Charles, 34, a self-employed construction worker of Festival City, North Ruimveldt, was charged on February 11, with the murder of his wife and was remanded to prison. He is expected to make his next court appearance on March 19. He is reported to have tried to end his life by ingesting what is believed to be a poisonous liquid, a few hours after learning that his wife had died. He was hospitalized and was later released.
Latoya, 29, was stabbed by her husband after he allegedly accused her of having a relationship with a neighbour. The entire ordeal was reportedly witnessed by the deceased woman’s 11-year-old daughter, Marcia.
Latoya leaves to mourn her three children, Marcia Conway, 11, Macyann Woolford, 7, and Shemar Woolford, 4.
Georgetown — A16-year-old Anna Regina fifth form student was placed on $40,000 bail on February 10, after allegedly having sex with a 13-year-old student of the same school.
A police report stated that on February 6, last, at Reliance, the teen along with two other boys and three schoolgirls from the Anna Regina Secondary School booked rooms in a hotel with the intent to engage in sex.
The report further stated that a worker at the hotel suspected the minors to be students and informed the Ministry of Education, who along with ranks from the police force moved in and apprehended them.
The girls were sent to the hospital for a medical examination, which confirmed that the 13 year-old had been sexually involved. The boys were interrogated by ranks of the force and then placed on $10,000 station bail.
Meanwhile 25 year-old Ramkhellwan of Sparta Essequibo who allegedly raped his mother while she was under the influence of alcohol was remanded to prison. The incident allegedly took place on December 16, 2006, at their residence. He will return to court on March 17.
Georgetown — The Colin Caesar, a Pentecostal pastor, who usually teaches songs to prisoners at the Camp Street prison, was remanded to prison for allegedly smuggling a quantity of cannabis into the prison.
It is alleged that on February 7, Caesar had 173 grammes of cannabis in his possession for the purpose of trafficking. He was nabbed by the police who conducted a search on his person and uncovered the cannabis in his underwear and shoes. The police also discovered cell phones on Caesar.
Caesar pleaded not guilty to the charge of possession of narcotics for the purpose of trafficking.
Georgetown — Seven men, who were found dressed in female’s clothing, were each ordered to pay a fine of $7,500 when they appeared incourt on February 9.
It is alleged that Anthony Bess wore a jeans, a designer top and a hooded over coat; Joshua Peters wore a skirt with a designer top; Joseph Fraser wore a black dress with green designs, while Seyon Persaud wore a short skirt with a red designer top. The others pleaded not guilty.
They seven men stated that they were a family and that they behave the way they do because they were born like that and it makes them feel nice.
Georgetown — A Guyanese born New York woman who was involved in money laundering in the USA for drug traffickers in Guyana has been sentenced to a year and a day in prison by New York Judge Edward Korman.
Sabrina Budhram received the sentence on January 9. She and her husband Arnold Budhram, who was sentenced to three years probation last October, had pleaded guilty to the money laundering charge in the New York court.
According to Stabroek News (SN) Sabrina would serve her time in the Federal Correctional Institution, Danbury Camp, a barracks-style prison camp. SN stated that through her lawyer, Budhram is asking that Judge Korman recommend to the Bureau of Prisons that she be “designated for immediate halfway house placement pursuant to the Second Chance Act so that she may continue to care for her child and continue to work to help support her family.” In a motion late last year Budhram had asked the court for a non-custodial sentence to take care of her child, stating that there was no one else in the family who could adequately fulfill that role.
Sabrina is the sister of Peter Morgan who was extradited from Trinidad to face drug charges in New York. The Budhrams are believed to have been in direct contact with drug lord Roger Khan in 2003. They were arrested in 2004.
The Motor Vehicle and Road Traffic (Amendment) Act 2008 and the Summary Jurisdiction (Offences) (Amendment) Act 2008 came into effect when published on January 31.
The Ministry of Home Affairs and the Commissioner of Police were informed of the activation of the laws by the Parliament Office.
Acccording to the Motor Vehicles and Road Traffic (Amendment) Act a person shall not drive a motor vehicle while using a hand-held mobile telephone or a similar hand-held device, except for hands-free devices or solely in cases where the need arises to communicate emergencies to the disciplined forces, ambulance services or a registered medical practitioner.
The Summary Jurisdiction (Offences) (Amendment) Act stipulates that the driver of a motor bus or hire car shall not play or allow anyone to play music in the vehicle while plying its route or parked in a public place.
These laws received unanimous support when they were brought up for approval in Parliament last July and August, respectively.
However, their enactment was delayed by President Bharrat Jagdeo in order for the holding of a public education campaign.
This project will teach women how to do breast self-examinations. It was initiated last October.
Minister of Health Dr Leslie Ramsammy told the media recently that persons are already being trained for the project. He said they will then be despatched countrywide to train and certify volunteers and other health care workers who will be doing the house-to-house calls. The minister said several experienced gynaecologists developed the curriculum being used for the training.
Dr Ramsammy said Guyana has about 200,000 households so the 50/9 minimum target should reach a quarter of the female population.
All training is expected to be completed by April and the house visits will begin in May. According to the minister August and September will be the “mopping-up” months when the 50/9 team will compile data and continue to work to reach the target if they have not exceeded it by then.
According to Stabroek News (SN) the man wants justice and is very fearful for his life. SN says that the man has been asking residents of some Berbice River communities to help him get a meeting with the President. It had been reported previously that a 9th man had escaped the slaughter that day.
SN stated that the residents to whom the man has spoken said he has abandoned his home out of fear and currently moves from place to place having no fixed place of abode. They said he has been saying the same thing since last June soon after the incident occurred. Back then, according to SN, he had even gone to the police in the area, who did not believe him and ran him off warning him not to repeat what he was saying to anyone.
SN added that the man told residents of Berbice that on the evening of June 4, he was at Leonard Arokium’s camp at Lindo Creek with eight other men. He related to them that he had gone off into the bushes “to ease his bowels” when he heard a hail of gunshots. He said he approached cautiously and from a safe distance, saw a group of approximately five men standing guard while a few others seemed to be questioning the miners as they beat them with sledgehammers.
He told the residents that after a while, the men drenched the camp and the miners with fuel and then set the camp and its occupants on fire.
Georgetown — The largest ever budget in the history of the country was presented to the National Assembly by Minister of Finance, Dr Ashni Singh on February 10.
The $128.9 billion National Budget, promises no new taxes and is said to be designed to preserve macro-economic stability with heavy focus on the social sector and administrative intervention. It has been titled ‘Working together – Reinforcing Resilience’, and represents an 8.1 percent increase over the 2008 budget. According to the Guyana Chronicle (GC) the budget targets four broad-based areas – Real Domestic Product under which falls the Agriculture, Industry and Services sectors; Monetary Policy Inflation; Balance of Payments and Targets for the Non-Financial Public Sector which address the operations of Central Government, Public Enterprises and the Non-Financial Public Sector.
The leader of the Opposition, Robert Corbin slammed the budget projections as grandiose and unachievable. Alliance For Change Chairman Khemraj Ramjattan said it was a clever analysis of identifying the excuses for the poor economic performance for last year.