LARGEST BUDGET EVER IN THE HISTORY OF GUYANA
$119.3B budget presented
- Forensic lab, modern police training facility for crime fight
- New Zero-rated VAT items announced
- Continued heavy focus on social sectors
By Neil Marks
THE government yesterday unveiled a budget of $119.3B for 2008, investing heavily in national security projects, such as the construction of a forensic laboratory and a modern police training facility, given two recent massacres which claimed 23 lives and unseated calm countrywide.

Minister of Finance Dr Ashni Singh presented the budget, the largest in the country’s history, under the theme “Staying the course: Advancing the transformation agenda.”

He said the “incomprehensible horrors” of Lusignan and Bartica, which left 11 and 12 dead respectively, sparked renewed resolve to accelerate reforms in both the justice and security sectors. He announced a $13.7B allocation to strengthen agencies that contribute to public safety and national security, representing an increase of some $4B over what was allocated to this sector last year.

Among the other projects he highlighted were the development of an integrated crime and violence information system to monitor trends in crime and violence and thereby allow for more targeted “evidence based interventions.”

“There is no room for terrorism of any kind in Guyana,” he declared, pointing out that the government has spared no effort in securing the support of both multilateral and bilateral partners to “maximize” the resources to fight crime. Trinidad earlier in the week announced it was lending Guyana a helicopter, and providing specialized weapons for the crime fight.

The Finance Minister alluded to plans to improve rapid response systems, upgrade communication systems, expand access to police and other databases and improve intelligence gathering and analysis capabilities.

Dr Singh also outlined plans to intensify training in special operations for selected members of the Joint Services, and ably equip the crime fighting forces with appropriate transportation and technologically appropriate equipment to enhance their capacity on the ground.

President Bharrat Jagdeo had earlier announced that $1B would be used to acquire two helicopters.

According to Singh, some $900M will be spent to buy appropriate equipment and other gear for members of the Joint Services.

Economy, Tax reform
Dr Singh said the budget is aimed at maintaining and enhancing the physical and institutional infrastructure that is required to increase private investment, create jobs, improve livelihoods, and generate wealth.

The unprecedented budget stemmed from a 5.1% growth in the economy and a major increase in revenue collections in 2007.

Total tax revenues collected by the Guyana Revenue Authority (GRA) amounted to $77.3 billion, a whopping increase; it was $18.8B over the previous year.

The Valued Added Tax (VAT) – for which implementation problems helped account for the steep jump in inflation from 4.2% in 2006 to 14% last year - and excise taxes yielded total collections of $36.7 billion.

This year, Singh announced that the government will conduct a study of the tax system to determine further tax reforms, while other systems such as the Total Revenue Integrated Processing Systems (TRIPS) and the Taxpayer Identification Number (TIN) are being implemented “to allow for significant re-engineering of the way the Guyana Revenue Authority interacts with taxpayers.”

The economy is projected to grow by 4.8% this year, while the projection for inflation was put at 6.8%.

Minister Singh also outlined a further list of items that would not attract VAT as of next month.

Social Sectors
Spending in the education sector this year is set at $19B, of which $2B would be used for construction, rehabilitation and maintenance of schools and buildings, including the completion of the Bartica secondary school and the construction of the Mahaica secondary school.

An amount of $500M is budgeted for the construction of teachers’ houses in Regions One, Seven, Eight and Nine, the provision of electricity and water to schools in Regions Two, Three, Seven and 10, and the procurement of text books, and continuation of the school feeding programme.

For the health sector, $12.1B has been allocated, with $1.2B set aside for the completion of the new modern Linden Hospital and the commencement of the inpatient facility at the Georgetown Public Hospital Corporation (GPHC).

New services such as hip replacement, heart surgery, cancer treatment, expanded eye care services, such as glaucoma, are already offered at the GPHC and will be expanded in 2008. An allocation of $2.8 billion has been provided for operation and maintenance of the hospital, which includes $91 million to upgrade the electrical and water supply system.

A total of $340 million 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 countrywide.

In the housing sector, $1.5B has been allocated to complete infrastructure for approximately 3,000 lots in housing schemes, allocate a further 2,000 low income and middle income house lots, and process 2,500 titles and transports.

Over $3.7 billion has been allocated to the water sector, with spending budgeted for the completion of two iron removal plants at Sophia and Central Ruimveldt, and the upgrade of transmission and distribution lines to benefit approximately 50,000 persons.

Over $1B has been allocated for the design and start of construction of three water treatment plants at Lima, Vergenoegen and Cotton Tree.

Agriculture
An amount of $7.6B has been allocated to complete field improvements and the new Skeldon Sugar factory, including the bagasse generating plant.

Skeldon output is projected to increase by 38.8 percent to 38,500 tonnes of sugar this year.

In addition, Dr Singh said works will commence on the US$10M project to upgrade the Enmore factory and to start construction of a packaging plant.

Of this amount, US$7 million is budgeted to be spent in 2008. When completed, this project is expected to provide the most modern and hygienic packaging facilities within the Caribbean and will meet the most stringent of inspections.

In rice, the varietal improvement programme will be strengthened to produce a more pest resistant and high yielding variety of rice with two new lines expected in 2009, while the technology transfer programme will be accelerated to improve farmers’ knowledge in the use of pesticides and fertilisers. Two new seed facilities are also expected to commence operations later this year.

Public Infrastructure
The sum of $5B has been proposed to spend on various road projects, including the completion of the road from New Amsterdam to No. 36 Village, and the start of a new project to extend the road from No. 37 Village to Moleson Creek.

$1.7B is allocated to rehabilitate and maintain urban and rural roads in all ten Regions, including such areas as Santa Rosa to Kwebanna, Henrietta, Leguan, Stewartville, Friendship, Enmore, Bush Lot, Fyrish, Agatash, Katoonarib to Rupununi Bridge and Blueberry Hill.

Some $1.2B is allocated for bridges this year. Some $980M has been budgeted to complete the access roads to the Berbice River Bridge which is due for completion this year.

Recognising that a critical part of road and bridge maintenance is weight control, an amount of $160M has been allocated to purchase 4 fixed platform vehicle weight scales and 5 additional portable scales.

The fixed scales will be installed at Lethem, Wismar, the west side of the Berbice Bridge, and the west side of the Demerara Harbour Bridge, while the portable scales would be deployed as required to safeguard the structural integrity of roads and bridges network.

Under river and air transport, key projects include the construction of two new airstrips at Wakenaam and Leguan and the rehabilitation of the Baramita airstrip, while an additional $29.7 is budgeted for the maintenance of domestic aerodromes.

At the country’s lone international airport, $28M will be spent for the rehabilitation and upgrade of the electrical system.

An amount totaling $2.2B has been set aside to continue construction, rehabilitation and maintenance of sea defence structures along coastal regions.

For drainage and irrigation, $3.7B is budgeted, with most of it going to towards the maintenance of drains and channels, excavate outfall channels, continue works on embankment and empoldering, construct and rehabilitate culverts, kokers and structures, and rehabilitate drainage pumps.

In the area of energy and power generation, government has budgeted US$21.2M for the Guyana Power and Light Company.

Suspects arrested for Bartica massacre air-dashed to City
- for further interrogations
AS the Police continue their probe into the gruesome slaughter of 12 people in Bartica last Sunday, three of five suspects, all males, who the Joint Services had arrested, have been brought to the city for further interrogation.

Sources told the Guyana Chronicle, the men who were being held at the Bartica Police Station, were yesterday afternoon taken by boat to Baganara, a five-minute ride by speedboat from Bartica, from where the suspects were air-dashed to the city.

Among the three is said to be a boat captain with knowledge of traversing hinterland areas.

It was from the said location that the injured and dead were transported to the city following Sunday’s heinous crime, committed by a gang of heavily armed men.

Meanwhile, the Joint Services are continuing their search on both land and sea in a bid to nab the killers.

The day following the carnage, the Joint Services discovered a 22-ft speedboat adrift in the vicinity of St Mary’s, Essequibo. The craft was equipped with a 75 HP Yamaha engine and also contained fuel, army regulation kits, rain cloaks, toques and a .30 carbine round of ammunition.

Ballistic tests conducted on shells retrieved from the Bartica scene have revealed that the killers are the same that slaughtered 11 people at Lusignan, East Coast Demerara, less than a month ago. (Wendella Davidson)