AFC propses $36 billion budget cuts

afc-logo2Georgetown: The Alliance For Change has sent notice to the clerk of the National Assembly specifying its proposed amendments to the 2013 National Budget Estimates.  This was done in keeping with Parliamentary procedures which require such notice to be given at  least twenty-four hours before the convening of the Committee of Supply, and to  be formatted as a motion to amend each line item by a specified amount.

The proposed amendments, if approved, would result in reductions of G$3.135 Billion and G$35.505 Billion to the current and capital estimates respectively.

According to a statement by the party; “While it maintains that the 2013 Budget is not a true and full reflection of all revenues of the State, and that revenues held in accounts of NICIL, GGMC and slush funds must be deposited into the Consolidated Fund for proper accounting, the AFC will endeavour to ensure that wastage is kept to a minimum. Where possible, the  AFC will be looking to make savings that the government can then re-allocate to critical areas.  It is the position of the AFC that $19 billion of the amounts budgeted for the Low Carbon Development Projects ought not to be included in the national budget estimates since these inflows are conditional on approval  by the international partners overseeing their implementation.  At this time only $1 billion has been approved and the AFC supports this allocation. The remaining $19 billion has not been approved by the international partners. If, for some reason, this money is not approved by the  international partners, it would increase our deficit by $19 billion. When it is approved, the AFC will support a supplementary appropriation of this amount or  to the amount approved.

The AFC will defer approval of $1.606 Billion of the amounts budgeted for GECOM  pending confirmation of Local Government Elections.  Should the way be cleared for Local Government Elections to be held this year, the AFC will support a Supplementary appropriation.

In 2012, the Assembly approved $2 billion for Drainage & Irrigation. Only $585M was expended.  The AFC wants a full feasibility study and progress report on this project to be laid in Parliament before we can support additional funds. At this time there is no indication that the NDIA can properly spend $1.4 billion and for this reason is proposing that the allocation be reduced to $585 million unless the government can show how and when this money will be spent. Some of this money may best be spent of other critical projects. $259 million has been allocated for the National Competiveness Programme. The government's budget has not provided any details on this project. The AFC would like to have  a progress report on this six year old project to ensure that targets were reached and to ensure that the Programme is delivering value for money. Pending satisfactory reports, the AFC has proposed that $100 million be held back.

The AFC fully supports a properly constructed new East Bank Demerara Road. We have experienced the congestion along this corridor and would like to see a new road aback the housing schemes constructed. However, there are some questions on the present road expansion project. Of the $1.1 billion approved last year, only $554 million was spent. The AFC would like to know how this money was disbursed, what percentage of the work was completed for each lot and who the contractors are.  The AFC is proposing a reduction of $539.9 million to amounts budgeted for this project in 2013 pending further information from the government.

The AFC has repeatedly stated its support for hydro-electricity. However, the budgeted allocation of $2.35 billion for the Amelia Access Road is questionable. The AFC  would like to know how previous allocations were spent, who are the contractors  and more importantly, why the feasibility study is now being done.

The AFC supports work to extend the runway at the Cheddi Jagan International Airport and would have no hesitation in supporting a budgetary allocation for such a project. However, the AFC is not convinced that the other works to the airport contemplated by the government are a priority at this time.

The AFC will not support the construction of the proposed Specialty Hospital due to the irregularities surrounding the award of the contract. The EXIM Bank of Indiahas stated that they will not be releasing any funds unless this project is approved by parliament. The AFC calls for a retendering of the project.

Given that the National Assembly passed a No Confidence Motion against the Minister of Home Affairs, the AFC thinks it prudent that allocations to the Ministry be reduced without affecting the Guyana Police Force, Fire Service or Prison Service.

The AFC reiterates, should the government provide sufficient details and information, many of these reductions can be avoided.”