WHO GETS WHAT IN 2000

Current Non-Interest Expenditure

In this section we consider how the budgeted expenditure is allocated among competing ministries, departments, programmes and projects.

Central Government's non-interest current expenditure (employment costs and other charges) for the year is budgeted at G$29.901Bn which is 19.31% above revised 1999. The Ministries/ Departments with the most significant budget allocations are:

It is useful to note that the percentage of total current expenditure that the majority of Ministries received in the 2000 Budget decreased over those in 1999 as shown in the table above even though the absolute values increased. This is due to the substantial increase in the Ministry of Finance’s allocation in 2000 to finance the charge for employment cost.

The Georgetown Public Hospital, which was established as Corporation in 1999, has been allocated G$1.3Bn or 4.8% of Central Government current non-interest expenditure.

The Ministry of Culture, Youth and Sports which came into being in 1998 has been allocated $240.6M or 0.8% of total budgeted expenditure as compared with 0.9% in 1999. The Ministry of Trade, Tourism and Industry has been allocated $168.4M or 0.6 % of the budget as compared to 0.7% in 1999.

The regions with the most significant allocations are:

* Represents % of regional allocation.

Significant changes from the previous year latest estimates occurred in the following Ministries / Departments:

Agency

2000 $ (M)

1999 $ (M)

Variance $(M)

% Inc./(Dec)

Ministry of Finance

4,925

1,849

3,075

166.24

Elections Commission

2,733

40

2,692

6,599.54

Georgetown Public Hospital

1,396

0

1,396

100.00

 

Almost the entire allocation for the Elections Commission for the year is in anticipation of elections in January 2001.

Capital Expenditure

Central Government's capital expenditure for the year is budgeted at G$14.600Bn which is 18.39% above revised 1999 and 23.5% of total 2000 expenditure. The Ministries / Departments with the most significant capital expenditure allocations are:

The most significant capital allocation was for the Ministry of Public Works and Communications due to the extensive rehabilitation and construction of roads, bridges and sea defences identified to be done in the 2000.

The Ministry of Housing and Water which was established in 1998 secures a 6.4% increase in allocation over 1999 representing 15.24% of the total capital expenditure budget. This allocation exceeds those earmarked for both the Education and Agriculture Ministries. A significant portion relates to capital projects to be administered by the Guyana Water Authority.

Guyana Police Force

Total budgeted expenditure allocated to the Guyana Police Force for the year was G$2.016Bn which is 27% above the revised 1999 of G$1.583Bn. Major components of this allocation are wages and salaries G$881.669M or 43.7% of the total and overhead expenditure of G$700.002M or 34.7%.

Office of the Auditor General

Total budgeted expenditure allocated to the Office of the Auditor General for the year was G$103.486M which is 32.49% above the revised 1999 of G$78.108M.

Ram & McRae Comments

The Guyana Police Force has been heavily criticised for the escalation of crime in Guyana. In response it is argued that salary levels did not attract the right caliber of persons and that the other resources were grossly inadequate. The Year 2000 proposal should partly meet these needs.

The Office of the Auditor General has been publicly but unfairly criticised by an Officer of the World Bank for late delivery of work. The increase allocation is reasonable but not adequate to meet the increasing standards demanded of the State Audit Office.

Critics of the Government at a first glance may wish to accuse the Government of preferences for certain regions but such criticisms have to have regard for the nature of the expenditure proposed to be incurred.