Parade a roiling sea of colour and music
As thousands come for fun and frolic
The parade got underway in the morning, with scattered groups of people along the traditional Church and Irving streets route; but in the afternoon the onlookers had swollen into a colourful sea of thousands, as folks from all walks of life flocked the city streets to get a glimpse of and participate in the annual Mashramani costume and float parade.

The government had taken the decision to go ahead with the Republic Day celebrations despite security unease after the Lusignan, Bartica killings.

It was a judgment call that Guyanese had to make on their own. The government was clear on welcoming those to the streets, but also respecting the decision of those who chose not to be part of the activities.

Many government ministers, the Opposition Leader Mr. Robert Corbin, and other leading members of the country’s political life were on the road to mingle with those who did come out.

Minister responsible for the celebrations, Dr Frank Anthony, indicated that one of the reasons for the decision to go ahead with the event was to answer the perpetrators of the massacres that if their intention was to disturb national life, it was not going to happen.

Merriman’s Mall was less jam-packed than usual, but many were there, picnicking as they witnessed the spectacle of the parade.

There was the usual flurry of food and drink sellers, and viewers patronizing them. It is not the thing for stallholders to “hustle” customers on Mashramani Day, but many did so yesterday.

Those who were engaged in the costume and float parade were not in their usual large numbers and even their revelry was somewhat low-key, hesitant, save for the extremely hyped-up Concept Entertainment posse and that of Digicel as well.

Many of the floats carried strong messages. The band of the Guyana Agricultural and General Workers Union, for example, issued a call for “national tolerance, healing, security and social justice.”

Ironically, the Georgetown Mayor and City Council which almost always cries of financial woes, pulled out all the stops, bringing on the road a giant replica of the Stabroek Market.

The Guyana Forestry Commission tagged along a huge truck, adorned beautifully with young ladies dressed in the traditional attire of Guyana’s six peoples.

Planning for the different bands started months in advance and entailed investment of millions of dollars - another reason for the government’s decision to proceed with the activity.

Record $119.3B budget
To maintain advancement, transformation, modernization of Guyana

Finance Minister, Dr. Ashni Singh Friday presented another record high budget of $119.3B in the National Assembly that reflects the administration’s ongoing work in the various sectors targeted at improving living standards and further enhancing the physical and institutional infrastructure required to promote growth, create wealth and generate employment.

Minister Singh, in his budget speech which was presented under the theme Staying the Course: Advancing the Transformation Agenda, said the task of government now is to sustain the momentum in advancing the transformation and modernization of the country.

“Our Government is firmly committed to maintaining and enhancing the physical and institutional infrastructure that is required to increase private investment, create jobs, improve livelihoods, and generate wealth.”

He said, “The policies outlined in this Budget aim to do just that, and in a careful, responsible, and sustainable manner. I believe that the goals and targets we have set ourselves can and will be achieved, both in the immediate and the medium-term.”

This, he said, will be done through several areas including: managing the economy responsibly, and avoiding short-term actions that can undermine the potential for long-term growth, accelerating the programme of infrastructure development, sustaining significant investments in the most important social services, particularly education, health, housing, water, and sanitation and ensuring that the justice and security sectors continue to accelerate reforms to deal with the current and emerging challenges.

Minister Singh said that the economy is projected to continue to grow in 2008 by 4.8 percent and that this growth is expected to be broad-based and to reflect expansion in both traditional and new and emerging sectors.

Government has zero-rated several more items for the purpose of the Value-Added Tax with effect from March 1. In relation to the specified food items, educational materials and services, medical services and prescription drugs, and the several other necessities which were included in the list,  

Government’s initiative to zero-rate these items was aimed at ensuring that the introduction of the value-added tax would not contribute to an increase in the cost of the goods and services specified, the Finance Minister noted.

 “These items, when added to the list of zero-rated items that were previously approved, comprise an even more comprehensive basket of basic goods and services which are now subject to no value-added tax. This measure is expected to result in the loss of over $1.2 billion in revenue, and is intended to provide additional relief to the consuming public,” Minister Singh asserted.

The following supplies will also be zero-rated for the purposes of the value-added tax with effect from March 1, 2008:

Wheaten flour; barley flour; plantain flour; oats; sago; dried chick peas (not including canned chick peas); dried kidney beans (not including canned kidney beans); dried pigeon peas (not including canned pigeon peas);cheddar cheese (not including grated, powdered, or sliced); cassava bread; casareep; farine; locally produced peanuts and cashew nuts; locally produced bed sheets, pillow cases, towels, rags, curtains, handkerchiefs, rugs, mats, table covers, shelf covers, blankets, and ribbons; laundry soap; diapers; toothbrushes; kerosene stoves; mosquito nets; liquid butane gas; bicycles, excluding racing bicycles; vitamins, minerals and tonics for medical or health supplement use (but not including energy drinks, food supplements and similar products); wheelchairs; crutches; hearing aids; glucometers (glucose blood test machines), and needles and glucose blood strips made for use with such machines; machinery, equipment or components used in the generation of renewable energy in the agriculture sector using agricultural by-products; paddy; hatching eggs; fish hooks, sheet lead, fishing floats, cotton, and styrofoam for use in the fishing industry; animal medication including animal vitamins; and all terrain vehicles used in the mining industry.

PROJECTIONS
* Gross Domestic Product (GDP) is expected to grow by 4.8 percent.

* Sugar production is expected to increase by 8.8 percent over 2007

* Rice output is expected to increase by 7.6 percent

* The inflation rate is expected to be 6.8 percent

* Current revenue is expected to grow by 1.7 percent to $81.6B

* Economy is expected to grow by 4.8 percent

Budget Highlights

Investment and Job creation
* The New Skeldon sugar factory’s output is projected to increase by 38.8 percent to 38,500 tonnes. The factory will be in operation this year. Some $7.6B will be spent to complete improvements in the field and the factory.

* Government is vigorously pursuing private sector investment in the alternative energy sector, specifically hydropower and biofuels. It is currently in receipt of 11 investment proposals for biofuel interest.

* Government will continue to work with a strategic private partner to finance the construction of the hydropower project at Amalia.

* The technical work that will inform Government’s deliberations for the possibility of establishing an offshore financial sector in Guyana has commenced and will advance during this year.

Enhancing Security and Justice
* $13.7B has been allocated for the strengthening of public safety agencies as reforms in both the justice and security sector will be accelerated to ensure urgent actions are effectively executed  to make sure there is a safe and secure environment

* Immediate action is being taken to increase public confidence in the capacity of the law enforcement system through a number of measures including; - improving the capability of rapid response systems to serious crimes; upgrading communication systems and expanding access to police and other databases and improving intelligence gathering

* Over $900 million will be utilized to ensure that appropriate equipment/ gear are available for the joint services, including two helicopters.

*  $65 million will be spent to expand and equip community policing groups to support crime fighting efforts.

* Crime fighting strategies and actions are complemented by crime prevention strategies under the US$22M Citizen Security Programme.

* Over $300 million is allocated for the completion, construction and rehabilitation of more than 30 police stations

*  $1.5B has been allocated to the justice sector.

* $303M will be spent under the Programme for the Modernisation of Justice Administration System, part of a US$10.2M programme aimed at improving the quality, efficiency and efficacy of service delivery in justice sector institutions.

* $50M has been allocated to complement ongoing efforts to reduce the        

backlog of civil and criminal cases in all levels of courts

Housing, Water and Sanitation
* A total of $1.5 billion has been allocated to improve infrastructure for existing and new housing areas.

* Infrastructural work for approximately 3,000 lots in housing schemes, will be completed while a further 2,000 low income and middle income house lots will be allocated

* Over $3.7 billion is allocated for the provision of potable water supply

* $323 million has been allocated to improve sanitation including to rehabilitate the Tucville septage receiving facility

Education & Training
* $19B has been allocated to the education sector with $3.4B to be  spent on capital projects while $15.5 billion will be expended on the sector’s operations with almost $9 B to be spent on wages and salaries.

* $115M will be spent for the implementation of a nationwide Literacy Programme while $89 million will be spent to continue the training of master trainers, cluster advisers and cluster trainers so that teachers can be trained in literacy methodology.

* The Numeracy programme will benefit from a further $90M. 

* Over $728M will be spent on teacher training to upgrade capabilities and curriculum modules.

* Over $2B has been budgeted for construction, rehabilitation and maintenance of schools and buildings in the education sector

Health
* $12.1B has been allocated to the health sector with capital expenditure budgeted at $3.3B and current at $8.8B.

* $1.2B will be spent to complete the new modern Linden hospital and the Georgetown Public Hospital Corporation (GPHC) inpatient facility.

* Health services will be offered in modern new hospitals in Lethem and Mabaruma as well as the Suddie, Leonora and Mahaicony Hospitals which have been rebuilt to accommodate diagnostic centres.

* $140 million will be spent to operationalise the Suddie, Leonora, and Mahaicony centres and the ophthalmology centre at Port Mourant, and to rehabilitate the Canje psychiatric hospital.

* $2.8 B will be provided for GPHC’s operation and maintenance of which $91 million will be utilized to upgrade the electrical and water supply systems.

* Over 70 graduates from the Guyana/Cuba collaboration will arrive in country this year to complete their final year of studies in Guyana. More training will also be done for nurses and other medical personnel.

* $340 M will be spent on the Basic Nutrition Programme, to continue manufacturing and distributing sprinkles to children and pregnant women through 79 centres catering for 44,000 beneficiaries  

Youth and Sport
* $60M has been allocated for the expansion of the National Training Project for Youth Empowerment programme. Approximately 1,000 young people who did not complete secondary school will receive skills training.

* $35.7M will be spent to expand and maintain the Madewini Youth Camp, to purchase training materials and sports gear and to retool workshops along with general maintenance at Kuru Kuru, Smythfield, Vryman’s Erven and Sophia Training Centres, and the New Opportunity Corps. 

* A further $20M is allocated for the Youth Initiative Programme for the establishment of additional facilities in Crabwood Creek, Calcutta and West Canje.

* $259M is provided for the construction of an Olympic sized swimming pool, for the rehabilitation of the Cliff Anderson Sports Hall and the National Gymnasium, and upgrading the Colgrain Pool, and for the purchase of sports gear and equipment.

New and Emerging Sectors
* US$20.9M will be spent to launch an Agricultural Export Diversification Programme

* The National Dairy Development Programme will provide partial material assistance to 130 individual farmers and 8 farmers’ groups for their resuscitation of 300 acres of pasture in seven regions.

* $35M will establish a new laboratory at NARI to consolidate all of the pest and disease management and quarantine services, as well as provide training to farmers and agriculture researchers and students.

Sea Defence and Drainage and Irrigation
*  $2.2B to continue construction, rehabilitation and maintenance of sea defence structures.

* The shore zone management system will continue in Regions 5 and 6,

* $3.7B is targeted to be spent on drainage and irrigation.

* $50M is allocated the Conservancy Adaptation Project which will develop a hydraulic engineering foundation critical for flood control management.

* $2.1B  will be allocated to the NDIA for rehabilitative and maintenance work

Targeted social protection interventions
* $2.5B will be spent on  old age pensions from which 35,000 persons will receive $6,000  monthly which represents an increase of 63 percent

* $810M will be spent on public assistance programmes aimed at 15,000 beneficiaries

* $120M will offset the cost of water charges on behalf of the elderly

* $105M under the Amerindian Development Fund will be utilised for priority projects in Amerindian communities

* $100M will be set aside to establish a fund to provide support to vulnerable single parent

* $50M  will be used to construct an Amerindian Hostel and allow increased access to educational opportunities for hinterland students

* $50 million will be spent to provide spectacles to persons in need

* $110M will be used to upgrade the Palms and meet operational costs

Energy and Power Generation
* US$21.2M will be provided to the GPL to advance its efficiency. Other initiatives to boost efficiency include implementation of a new customer information system, continuation of the meter replacement programme, and introduction of new metering technology.

* $220 M for the purchase of a diesel electrification system for Port Kaituma, and to construct distribution systems for Orealla and Siparuta, and install solar panels in hinterland communities.

Road and Bridges
* $6.2B has been budgeted for roads and bridges, of which $5 B will be spent on roads and $1.2B on bridges.

* $1.8B for the completion of Lot 1 from New Amsterdam Stelling to No. 36 Village and the commencement of Lot 2 from No. 37 Village to Moleson Creek.

* $857M for the rehabilitation of 54 bridges along the Timehri-Rosignol corridor.

* A further $980M will be used to complete the access roads to the Berbice River Bridge

* $160M has been allocated to purchase 4 fixed platform vehicle weight scales and 5 additional portable scales which will be installed at Lethem, Wismar, the western end of the Berbice River Bridge, and the western end  of the Demerara Harbour Bridge.

Tax Reform and Tax Administration
* Government will conduct a study of the tax system to determine how it can implement further tax reform. Thereafter, it will proceed to implement a number of reforms aimed at simplifying the business environment and ensuring efficient tax administration and effective compliance.

* Government is in the process of implementing several other improvements in tax administration, including the complete roll-out of the Total Revenue Integrated Processing Systems (TRIPS) and the Taxpayer Identification Number (TIN).

Highlights of the 2008 budget
* Income tax threshold increased by 25 percent from $28,000 to $35,000 per month with effect from January 2008.

* $13.7B has been allocated to the enhance justice and security sector

* $1.5 billion has been allocated to improve infrastructure for existing and new housing areas.

* Over $3.7 billion is allocated for the provision of potable water supplies

* $12.1B has been allocated to the health sector

* Capital expenditure is budgeted at $3.3B and current at $8.8B.

* $19B has been allocated to the education sector.

* $60M has been allocated to ensure the expansion of the National Training Project for Youth Empowerment programme.

* $2.5B will be spent on  old age pensions from which 35,000 persons over the age of 65 years will receive a monthly pension of $6,000 which represents an increase of 63 percent

* $6.2B has been budgeted for roads and bridges

* US$21.2M will be provided to the Guyana Power and Light to advance its efficiency.

* The new Skeldon sugar factory will be in operation this year; $7.6B will be spent to complete improvements in the field and at the factory. The factory’s sugar output is projected to increase by 38.8 percent to 38,500 tonnes.

The budget also makes provisions for the elderly, children and other vulnerable groups.

The debate on the $119.3 budget will begin on February 28.