The Government of
Guyana Financial Plan 2002
table at the bottom of this page presents a summary of the
Government's projected financial plan for 2002. Some of the 2001 figures, which appeared in the 2001
Estimates, have been restated in the 2002 Estimates without any
explanation. The Plan projects a negative current balance of G$2.052Bn
after taking interest and current expenditure from current revenue,
compared with a negative balance of G$1.942Bn in the 2001 Budget. This is
a major turnaround from a budgeted surplus of G$1.393Bn. The principal
elements of the 2002 Plan are:
projected to increase to G$43.790.3Bn in 2002 from G$41.426.2Bn in 2001.
The Revenue Authority projects an increase of G$3.134Bn or 8.3% over 2001
and now hope to bring in 93% of the total current revenue. In 2001, the
Revenue Authority realised decreased revenues of 0.79% over the previous
year and fell short of budget by 4.45%. Although collections in 2001 over
2000 of the Internal Revenue Department increased by G$0.719.1Bn or 3.6%,
the Customs and Trade collections decreased by G$1.021Bn or 5.6%. The
Minister explained that the lost revenue from the Customs and Trade
Administration was due to the reduction in international trade from the
September 11 aftermath.
is projected to increase by 5.23% from G$35.375Bn to G$$37.228Bn in 2002.
It is made up of interest expenditure of G$8.615Bn or 19% (2001-18.43%),
personal emoluments of G$15.814Bn or 35% (2001- 34%) and other charges of
G$21.413Bn or 47% (2001- 48%). The
main allocations of the non-interest expenditure were the Ministry of
Finance 14.14%, Ministry of Education 11.21%, Ministry of Home Affairs
9.63%, Guyana Defense Force 7.60% and Ministry of Health 6.29%.
are several significant projected changes in the allocation of certain
expenditure in comparison to the 2001. Major decreases over 2001 include:
Office of the Prime Minister (60)%, Elections Commission (36.7%), Ministry
of Finance (8.59)% and Ministry of Housing and Water (8.61)%.
projected increases over 2001 include Ministry of Health G$1,213Mn,
Ministry of Labour, Human Services and Social Security G$739Mn, Ministry
of Education G$606M, Guyana Defense Force G$334Mn, Ministry of Public
Works and Communications G$227Mn and Ministry of Home Affairs G$244Mn.
further details of allocation of non-interest expenses please refer to page
is projected to increase by 7.8%% from G$7.993Bn in 2001 to G$8.614Bn in
2002 or approximately 19.67% of current revenue compared with 19.29% in
2001. Interest on domestic and external debts is projected to increase by
5.4% and 11.3% respectively.
is projected at G$9.822Bn (2001-G$5.716Bn) and capital expenditure at
G$19.954Bn (2001-G$16.511). The
revenue figure is made up principally of HIPC grants ($6.363Bn) and
Project and Programme funds ($3.387Bn).
G$19.954Bn represents a 21% increase over 2001. This follows a
decrease of 3.6% in 2001 and an increase of 37.9% in 2000. The proposed
allocation of the capital expenditure includes Ministry of Public Works
and Communications 21%, Ministry of Education 13.93%, Ministry of Finance
23.36%, Ministry of Housing and Water 11.78%, Ministry of Agriculture
4.97%, and Ministry of Local Government & Regional Development 4.86%.
is projected at G$3.021Bn (2001-G$3.064Bn) made up of domestic debt
repayments of G$176.6Mn and external debt repayments of G$2.844Bn,
representing increase of 75% and decrease of 4% respectively over the
previous year. There is an overall deficit of G$15.2Bn compared with a
deficit of G$15.8Bn in 2001. It is projected that the deficit will be
financed from domestic and external sources of G$3.96Bn and G$11.2Bn
respectively. The overall
balance of deficit before grants is projected at G$25.03Bn which is
G$3.51Bn more than the deficit of G$21.52Bn in 2001.
2002, Domestic and External Debt Service as a percentage of current
revenue is projected at 26.6% compared with a revised percentage of 26.7%
in 2001 and 38.6% for the preceding year.
and McRae’s Comments
is surprising that the 2001 Budget presented in mid-2001 could be so wide
of the mark. Instead of a positive budgeted current balance of G$1.392Bn,
the actual results were a negative balance of G$1,942.3Bn. The principal
factors contributing to this turnaround were a decrease in current revenue
of G$2.592Bn, and an increase of current expenditure of G$1.842Bn. The
deficit would have been greater had there not been a lower than budget
charge for domestic and external interest repayment of G$1.098 or 12%.
composition of projected revenue for 2002 is essentially the same as 2001.
Corporation Tax fell slightly in 2001 compared with 2000.
2002 Estimates of Public Sector
OPERATION OF CENTRAL GOVERNMENT
Source: 2002 Estimates of the Public