By Gary Eleazar/Kaieteur News

Georgetown
EnergiesNet.com 02 11 2022

The $126B coming from the Natural Resources Fund (NRF) will be pooled with other revenue streams in the Consolidated Fund, which will pay for government’s programmes for the year—all of which are considered, “national developmental priorities,” and as such, could not be disaggregated and identified as financing a specific project.

This was among the conclusions made when the Members of the National Assembly met yesterday for the final day of the Consideration of the National Estimates for 2022—$552.9B—and approved the expenditures for the year. It would be apposite to note that despite the fact some $126B of this year’s Budget is being funded with monies to be withdrawn from the NRF for the first time, there was no mention—despite promises made—of which programmes specifically in this year’s budget would be funded, using Guyana’s oil resources.

In fact, Minister within the Office of the President, with responsibility for Finance, Dr. Ashni Singh, intimated that the money is in fact being used as budgetary support. Dr. Singh, when first pressed on the matter was reminded that “…we were being told that we have to ask the Minister of Finance, which are the projects that would be utilising the NRF amounts.”

NRF FUND

Shadow Minister with responsibility for the Finance Portfolio, for the coalition A Partnership for national Unity Alliance for Change (APNU+AFC), Member of Parliament, Juretha Fernandes, during the session reminded that MPs were told that during the scrutiny of the specific expenditure, they will know what specific projects will be utilising monies from the NRF during the Committee of Supply stage of the Budget approval process.

To this end, Dr. Singh was adamant that the new Natural Resources Act that had been approved provides a mechanism that the money be withdrawn and placed as a lump sum of money into the Consolidated Fund. He explained further that the new act established a mechanism whereby transfers come into the Fund in its entirety then appropriated. As such he was adamant that during the course of the past four days the MPs would have been engaged in the scrutiny of the expenditure.

According to Dr. Singh, once placed into the Consolidated Fund it forms part of the pool of resources available for this year, then “national developmental priorities” are appropriated for, through the budgetary process. He said that under the 2019 legislation a number of loopholes had been left in place. He stated that the money will further be subjected to external audits and further scrutiny such as the Public Accounts Committee. According to Dr. Singh, “this government is committed to the highest level of transparency and accountability.”

He stated that with withdrawals deposited into the consolidated fund, national development priorities are developed through Budget Process. According to Dr. Singh, the Budget during that process is subject to scrutiny throughout, implementation and execution and subsequently subjected to audit and scrutiny by PAC. At the end of the evening however, it could be concluded, as was explained by Dr. Singh, that the $126B was not funding a specific project but pooled together with the $552.9B, to fund the government’s national and developmental priorities that are then appropriated through the budgetary process.

PAY INCREASE

With more than $15B allocated in this year’s Budget for the payment of ‘other employment costs,’ Singh, also informed the House, that it is too early to pronounce on what level of salary increase would be provided to public servants for this year. The contentious issue was raised during consideration of the more than $31B that has been allocated for current expenditure under the Ministry of Finance Policy and Administration Department. Fernandes, at the time observed that last year public servants had enjoyed a seven percent increase in wages and salaries and that this was reflected in the Budget Estimates. She said that last year the amount used was some $10B, since increased to in excess of $15B and queried whether public servants would enjoy a higher than seven percent increase.

Providing a response for the House, Dr. Singh indicated that at present it is too early to determine the specificity with which any increases would be paid this year. According to Dr. Singh—responding to MP Fernandes—”as to specificity of salary increase” it is far too early to determine. He sought to assure however, that as long as this is determined—salary increases that will be paid—it will in fact be met from the provision. The Minister did seek to provide clarification on the increased amount over the previous year by pointing out that the allocation does in fact cater for multiple purposes. This, since it is the budgetary line item that has historically met the cost of miscellaneous costs to be met by government.

He cited as example the payment of salaries not budgeted for, such as for new recruits in the public service, promotions and other such changes in the employment structure. On the policy side of it, Fernandes sought to ascertain from the Minister whether the administration would be meeting with Teachers Union or Public Service Union on increases projected in the budget for this year. Dr. Singh responded saying: “…let me assure the House that this PPP/C (People’s Progressive Party/Civic) government is firmly committed to working closely with all stakeholders in society including organised labour on all matters of national importance.”

Pressed on when these talks would commence, Dr. Singh retorted that his government, throughout the year, “is open, available and eager” to meet with all stakeholders in society.

Dr. Singh had by way of a public broadcast in November last, announced that “your Government will be paying an across-the-board increase of seven percent to public servants, teachers, members of the disciplined services, constitutional office holders, as well as government pensioners.”

PAY DISPARITIES

The increase, he said, will be granted retroactively to 1 January 2021, and work will start immediately to ensure that it is processed and paid to eligible employees together with their December salary and in time for the festive Christmas season.”

During his Budget presentation in January last, in which public servants were eagerly awaiting an announcement with regard a pay hike for this year, Dr. Singh said “our Government remains firmly committed to improving the lives and livelihood of all Guyanese.”

He reminded that in 2021, a seven percent across the board increase was paid to over 50,000 public servants, teachers, members of the Disciplined Services, and Government pensioners. “We also committed at the end of 2021 to seek to resolve the disparities that exist across positions in the public service salary scale to ensure parity and consistency with which persons with similar qualification are paid. The required work to support this process will be undertaken this year.” By the end of yesterday’s consideration of the Estimates, the $552.9B Budget was approved for spending under the authority of the Appropriations Act for 2022 providing for the lawful withdrawal of $126B from the Natural Resources Fund.

kaieteurnewsonline.com 02 11 2022