February 14, 2022
AFC Statement on Budget 2022- approval process
The AFC noted that the 2022 National Budget approval process was characterized by a desire on the part of both the government and the Speaker of the House, to prevent thorough scrutiny and interrogation.
There is no denial that the preparation of a Budget is essentially an Executive function. But its approval is exclusively a Legislative function.
One of the first unacceptable hurdles confronted by members of the Opposition was the reduction by one day for the interrogation of the Estimates. Both the Government and the Speaker knew well that this was the largest Budget ever, with $ 127 billion from the Natural Resource Fund (NRF) being inputted into the spendings for 2022.
This obviously needed the maximum days provided for by our Standing Orders, namely 5 days. In previous Budgets which were far less, the full five days were consented to by all Parties. This alone proves that in 2022 the PPP Government is indisposed to maximum transparency and scrutiny.
Secondly, lengthy and ludicrous answers were given by Ministers, (and which were allowed by the Speaker), which further caused time to run out thereby preventing a number of Agencies within a number of Ministries from being interrogated. The height of such unabashed crassness in this answers to very relevant questions put to him was Minister Dharamlall.
Thirdly and significantly, there was an avoidance and evasion of answers by the entire Government team to facilitate the identification of what projects the NRF revenue stream went towards.
One of the purposes of the monies from the NRF is stated in Section 3 (2) (d) of the Act of 2021 and it is to ….“finance national development priorities including any initiative aimed at realising a green economy.”
Though asked several times whether certain projects were so funded, various Ministers failed to say.
The AFC is of the opinion that the entire spirit and intent of the Natural Resource Fund (NRF) Act has been hallowed out by the PPP Government making the monies mixed up with and fungible with the other revenue streams, and using same for budget support. What the fund finances, Guyanese will never know. From the perspective of the PPP Government it is simply anything and everything.
These shortcomings in the approval process compel the AFC to recommend that there be the establishment of a Budget Office, similar to the US Congressional Budget Office, to be a resource available to our Legislature in considering Budget Proposals and Estimates. This support will put our Legislature on a more equal footing with the Executive Branch when it comes to exercising power over public finance. This will also balance credibility of the Budget process by challenging facts and assumptions which otherwise go unchallenged. Accountability will also be enhanced.
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