Introduction


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1.1 Mr Speaker, I rise to move the motion for the approval of the Estimates of the Public Sector and the Budget for the Financial Year 2002. In so doing, I wish to indicate that in concurrence with Article 171, paragraph 2 of the Constitution, the Cabinet has recommended that the National Assembly proceed upon this motion.




1.2 Mr Speaker, Year 2001 was as eventful as it was difficult. It was a year in which we stood witness to the triumphs and traumas of our country and the tragic events that unfolded in the international community. These have left lingering scars in their wake. Even so, I would like to pay early tribute to the Guyanese people for their fortitude that has seen us through thus far. We will continue to count on their resilience and abundant resourcefulness, as we forge ahead with the implementation of our growth-inducing and poverty-reduction programmes in 2002 and beyond.




1.3 Mr Speaker, the year began quite eventfully. The generally peaceful atmosphere which characterised voting in the General and Regional Elections on March 19th was shattered soon thereafter when violence erupted in certain parts of our country. The very fabric of our society was threatened under the disruption that followed. Both life and limb were endangered while property was extensively damaged or destroyed. Fortunately, matured reasoning prevailed and a process of dialogue was institutionalised. In spite of the many hiccups, the dialogue has remained strong and offers the best hope for resolving differences. Mr Speaker, many of us, in our travels across this great land of ours, have witnessed the friendliness, warmth, caring and sharing that are openly expressed by our diverse people in their villages, neighbourhoods and towns. While periodic elections enhance the democratic process – in so far as determining who governs the country legitimately - it is attributes such as these to which we must consistently turn and constructively harness in our quest to build a united and free Guyana.





1.4 And so, Mr Speaker, mindful of the task at hand, Budget 2001 was presented in this House on June 15, 2001. It established our development agenda over the medium term, and the policy framework and targets for 2001. While we encountered the usual challenges, in the process of implementation, nothing prepared us for the outrageous events that took place on September 11, 2001. In a stark reminder of the dangers that lie behind the façade of world peace, terrorists struck boldly in the United States, causing a colossal loss of life and massive destruction to property.




1.5 Mr Speaker, those acts of madness and the subsequent devastating responses have had serious economic and political consequences. Security concerns have leap-frogged the international agenda, over-shadowing issues such as poverty alleviation, transfer of resources, globalisation and fair trade. This will have foreboding implications for Guyana, including reduced official development assistance and the postponement of the resumption of more robust growth in our economy. Also, in this new fight to combat international terrorism, Guyana will be required to expend scarce resources. This will strain an already tight budget situation. We expect that the pattern of government expenditure will alter somewhat, as we implement prudent fiscal and other initiatives to minimise the adverse impact on the economy and the society.




1.6 Mr Speaker, in spite of the many threats and challenges, we were still able to manage our economic affairs in a way that allowed us to emerge ahead of Year 2000. As predicted in Budget 2001, growth returned to the economy, with sugar recording its second highest production since 1978; inflation was at its lowest in more than three decades; and the external debt overhang was reduced further. We made commendable strides in the implementation of our social sector programmes while significant improvement to the physical infrastructure attests to success in this area. All of this was achieved while many of the world’s advanced economies were experiencing declines that resulted in massive layoffs, among other economic ills.




1.7 Mr Speaker, over the past four years, we have experienced some setbacks that have slowed the advancement of the economy. But we remain sanguine about the future of our country. Naysayers, antagonists or pessimists who either contribute to the widening of differences in our society or peddle their own version of doomsday for Guyana will not distract us. We will continue to work towards transforming Guyana from a low income, agricultural-dependent country to a middle income, semi-industrial one, a country that will boast of a higher per capita income and a better-educated population enjoying a better quality of life; where more young people are employed and can afford their own homes; where our senior citizens enjoy a comfortable retirement in a safe environment; and where justice, democracy and good governance permeate the entire society. We are firm in our belief that once these are in place, more of our people will be persuaded to call Guyana their home, instead of yearning to migrate to other climes.




1.8 Our policy agenda, which is elaborated in the PPP/Civic Manifesto for the 2001 General Elections, the Poverty Reduction Strategy Paper and, to some extent, the National Development Strategy document, explicitly recognises the need to stimulate growth, reduce poverty and engender sustainable economic development. It isolates and builds on our achievements over the past nine years, and emphasises continuity over the medium to longer term. Like Budget 2001, therefore, this year’s budget is yet another subset of that agenda. It is part of our long term strategy to keep the country on a progressive path of growth, development and prosperity. In this regard, and in order to reflect the thrust of our policies and programmes in 2002, we have chosen as the theme for this Budget, Promoting Economic Growth; Accelerating Social Gains.




1.9 Mr Speaker, while the Government will remain focused on the task at hand and ahead, it will need the full support of everyone. This is why we continue to foster the budget consultation process. Many recommendations were made and advice proffered during the preparation of this Budget. While we have only been able to accommodate those that will have a direct impact on the promotion of growth and the reduction of poverty, given the resources available, we continue to be heartened by the interest shown. It is on this encouraging note, Mr Speaker, that I would now like to review the global and regional economies and prospects for 2002.


Global and Regional Economic Review and Prospects




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2.1 Mr Speaker, during the early part of 2001, data and forecasts pointed to the world economy going into recession. However, there appeared to be good prospects for recovery in the latter part of that year. The tragic events of September 11, therefore, came at a time when the United States’ economy was already in recession and the global economy was particularly vulnerable to adverse shocks. Furthermore, the terrorists’ attacks - while affecting the United States most directly - have had worldwide implications for confidence, financial markets, and growth prospects.




2.2 Real growth in the global economy, in 2001, was 2.4 percent, just about half of what was achieved in 2000. While the advanced economies, including the United States and Japan, grew by 1.1 percent, this is significantly less than the 3.9 percent and 3.3 percent achieved in 2000 and 1999, respectively. This modest growth was reflective of the decline in almost all of the major regions of the world. Growth in the developing countries was estimated to be 4 percent, a decline of 1.8 percentage points relative to 2000, while it was 6.1 percent for countries in transition, down from 7.8 percent in 2000.




2.3 Mr Speaker, the fall-off in world growth was accompanied by a marked decline in trade growth, significantly lower commodity prices, and deteriorating financing conditions. For example, world trade grew by a mere 1 percent compared to a substantial 12.4 percent in 2000. In the midst of those declines, consumer and business confidence weakened around the globe and that, in turn, depressed world demand for goods and services. As a consequence, unemployment rose sharply, as inventories built up and businesses collapsed. It is estimated that in 2001, over 2 million jobs were lost in the United States alone.




2.4 Closer to home, Mr Speaker, the slowdown in the world economy had a contagion effect on the economies of Latin America and the Caribbean. Regional output grew by a mere 0.5 percent, cutting short the promising recovery shown in 2000, while unemployment stood at 8.4 percent. The sharp drop in visitor arrivals in the post-September 11 period, especially in the tourist-dependent countries, led to a fall in economic activity and incomes. This caused a weakening of the revenue base and deterioration in the fiscal and external positions. With the exception of Guyana and Jamaica, all of the Caricom countries experienced negative growth. Guyana’s positive growth rate amidst this sea of economic decline is more remarkable when it is considered that it was achieved in the context of one of the lowest inflation rate recorded in the past three decades.




2.5 Mr Speaker, the prospects for growth in the global economy in 2002 have been reduced markedly from the projections in October last year. Although it has improved over the past two months, the outlook for the international economy remains fairly tenuous in view of the problems in the United States, slower growth in the European economies and a worsening of the crisis in Japan. Growth is now projected to be flat at 2.4 percent, with the advanced countries targeted to grow by a mere 0.8 percent, even more slowly than in 2001. Inflation is expected to remain subdued at 1.3 percent, down from 2.3 percent in 2001. Unemployment is expected to remain high.




2.6 Regional growth for 2002 is pegged at 1.1 percent. The situation in North America in particular will affect the Caribbean economies. Trade growth is not expected to improve significantly and when combined with the slackening of visitor arrivals, the fall-off of remittances and the diversion of capital flows since September 11, 2001 could spell serious trouble for most of the Caribbean countries. This could jeopardise the adjustment efforts underway across the Caribbean Region, as countries prepare for the removal of preferential market access and trade within a liberalised environment.




2.7 Mr Speaker, in 2002 we will continue to take the necessary actions to limit the damage to the economy from any further adverse development in the world economy, stimulate further growth, and generally ensure our economic survival. In this regard, we intend to implement policies and measures to reinvigorate our main productive sectors and enterprises, expand the economic base, consolidate the financial infrastructure, and support private sector development, among others.




2.8 Mr Speaker, as this House is aware, sugar and rice continue to be the bulwark of the agriculture sector and our economy. Currently, they benefit from non-reciprocal preferential arrangements, mainly in Europe. However, these arrangements are set to undergo far-reaching changes. We, therefore, intend to work closely with our regional and other partners to ensure that the special circumstances of small, vulnerable economies like ours are recognised and attract appropriate reliefs. At the same time, we would seek to safeguard the gains from previous trading agreements while actively canvassing reform of the multilateral trading system. We look forward to the early fruition of the Free Trade Area of the Americas (FTAA) and the Caricom Single Market and Economy (CSME). The expanded market access could serve both to reduce the barrier of small size of the domestic market and compensate us for the impending loss of our preferential markets.




2.9 Mr Speaker, in his New Year’s Address to the Nation, our President aptly captured the state of the world economy, describing it as “very cold.” Under those conditions, we could choose to hibernate and wait for the cold winds to blow away, not knowing what fate awaits us at the end. Or, we can seize the opportunities coming out of the adversity of September 11, work with the private sector, labour and other stakeholders to create wealth for the benefit of all Guyanese. Mr Speaker, in choosing the latter course of action, we have signalled our intention to shape our own destiny. This is what this Budget is about.





Review of the Domestic Economy


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A. Real Growth of Domestic Output




3.1 Mr Speaker, Guyana’s economy recorded positive growth in 2001. This was achieved in spite of the recession in the world economy and post-Elections developments that affected business and other activities. Real Gross Domestic Product (GDP) expanded by 1.9 percent. This represented a reversal of the negative growth of 1.4 percent in 2000.




B. Real Sector Performance




3.2 Mr Speaker, the growth in the domestic economy was due partly to the performance of the agriculture sector, especially sugar and rice. Sugar production was 284,474 tonnes, 3.9 percent more than in 2000. Increased productivity and ideal weather conditions, which allowed for proper land preparation, were among the factors accounting for this achievement. Similarly, rice benefitted from favourable weather conditions, in addition to increased acreage cultivated and improved yields. As a result, production rose by 10.4 percent to 322,310 tonnes, a commendable performance in light of the problems affecting the industry.




3.3 Most of the other sub-sectors also recorded positive growth. Livestock increased by 2.7 percent. Poultry meat increased by 6.1 percent to 12.5 million kilograms, and egg production was 25.7 million units. Fresh milk production was 31.4 million litres. Other agriculture grew by 1 percent. Fishing increased by 1 percent. After experiencing a dramatic decline in 2000, forestry rebounded as output increased by 3 percent to 435,551 cubic metres.




3.4 Mr Speaker, the mining and quarrying sector showed an overall growth of 1.2 percent. Declaration of raw gold was 499,171 ounces. This was the highest achieved by the industry and surpassed Year 2000’s declaration by 4.8 percent. Both Omai Gold Mines Limited and the artesinal miners performed better than expected. Also contributing to the sector’s performance was the output of diamonds, which increased by 119 percent to 184,308 carats. Bauxite production declined by 25.2 percent to 2,011,301 tonnes, reflecting problems of finance, marketing, and erratic and unreliable electricity supply.




3.5 Mr Speaker, beset by a range of problems, including lack of adequate capital, managerial skills and technology, and the post-Elections unrest, the manufacturing sector showed marginal growth of 0.2 percent. Notable performances were observed in pharmaceuticals (ointments, 4 percent), beverages (rum, 43.8 percent), food (margarine, 4.8 percent; flour, 2.1 percent), and industrial goods (footwear, 79 percent; garments, 45.5 percent; and electricity, 5.8 percent). Reduced production was recorded in beverages (beer and stout, 10.1 percent; and malta, 7.8 percent), and industrial goods (paint, 2 percent; and plywood, 26.6 percent).





3.6 In the services sector, both the transport and communication and engineering and construction sub sectors performed creditably. Transport and communication increased by 5.5 percent, despite a significant decline in outgoing cargo, mail and passengers in the fourth quarter, in the wake of the events of September 11. Engineering and construction grew by 2.1 percent. Distribution grew marginally by 0.5 percent while zero growth was recorded for Government. Financial services declined by 5 percent.




C. Balance of Payments




3.7 Mr Speaker, falling commodity prices, high import prices for fuel in the first half of the year and the September 11 disaster weakened the balance of payments position. The balance of visible trade declined by a US$13.6 million in 2001.




3.8 Earnings from merchandise exports, which fell by US$19.8 million in 2000, declined by another US$15 million. To put this in proper perspective, merchandise exports of US$490.3 million was equivalent to only 82 percent of earnings in 1997. Bauxite earned US$15.3 million less. Although export prices increased by 10.3 percent, export volumes declined by 28 percent. Sugar receipts fell by US$9.6 million or 8.1 percent. While export volume declined from 277,446 tonnes to 252,330 tonnes the average export price increased by 1.1 percent to US$432.8 per tonne. Rice earnings declined by US$1.6 million, since the increased volume was unable to compensate for the lower average price. Timber earned US$2.2 million less than in 2000. However, gold receipts grew by US$3.7 million to US$127 million, largely on account of higher export volume.




3.9 Merchandise imports fell by 0.3 percent to US$584 million, reflecting an 8.7 percent increase in fuel and lubricants and a 2.6 percent fall in all other categories of goods. In December 2001, the Government signed the Caracas Energy Co-operation Agreement, under which Guyana will be granted a credit facility of up to 30 percent of the cost of the fuel whenever prices fall between US$15 and US$30 per barrel. The credit is repayable over 15 years at 2 percent interest. This will ease the balance of payments and reduce the pressure on Government revenues.




3.10 Mr Speaker, the lower level of government and private sector activities in the first half of 2001, especially in the aftermath of the general Elections, was partly responsible for the decline in imports other than fuel. Net services were US$79 million, 3.9 percent more than in 2000. Transfers declined by US$3 million, largely on account of a fall-off in remittances in the fourth quarter of 2001. In light of these developments, pressure was placed on the current account of the balance of payments, which declined by a further US$19.6 million to a deficit of US$128.6 million.




3.11 The capital account recorded net inflows of US$115.3 million. Net private sector capital was US$56 million. The overall balance of payments deficit was US$8.4 million. The deficit was adequately covered by the reserves of the Central Bank and debt forgiveness.













D. Monetary Developments




3.12 Mr Speaker, as reflected in key indicators, monetary policy was very effective in managing the excess liquidity in the system, as well as promoting price and exchange rate stability. Broad money – currency in circulation and private sector deposits – grew by 8.9 percent to $93 billion.




3.13 Total deposits of residents, comprising the private and public sectors and the non-bank financial institutions, grew by 4.7 percent, a slower rate than the 16.4 percent recorded in 2000. Private sector deposits rose by 9.7 percent to $76.7 billion while public sector deposits fell by 16.4 percent.




3.14 Net domestic credit of the banking system increased by 13.2 percent to $28.4 billion, a faster growth than that observed in 2000. Credit to the private sector increased to $59.3 billion. Although lending conditions were favourable, in the context of the decline of the Treasury bill rate, the slow growth in private sector credit reflected the slowdown in economic activities, the cautious lending policies of the commercial banks, and the high lending rate. With the exception of real estate mortgages, credit to the major economic sectors declined. In spite of the difficulties experienced during the year, the public sector remained a net depositor of funds with the banking system. Central Government’s net deposits were $18.6 billion while, for the rest of the public sector, it was $4.8 billion. The non-bank financial institutions had net deposits of $7.5 billion.




E. Prices and Incomes




a. Inflation Rate


3.15 Mr Speaker, the inflation rate was restricted to 2.6 percent in 2001, well below the target of 6 percent and the 5.9 percent recorded in 2000. This is a remarkable achievement, considering the triple-digit inflation of a decade ago, and is tangible testimony of the Government’s monetary policies and its activist role in maintaining relative stability of prices. During the early part of 2001, the Government intervened on three occasions to reduce the consumption tax on gasolene and dieselene, in order to cushion the impact of the spiralling international prices for fuel on the population. The moderate inflation rate was also helped by the marginal growth in the money supply and the build-up of inventories by businesses in face of reduced economic activities.




b. Interest Rates


3.16 Mr Speaker, the 91-day Treasury bill rate, which acts as a barometer for the fixing of other interest rates, fell from 9.2 percent to 6.25 percent. This resulted mostly from competitive bidding for Treasury bills and the excess liquidity in the system. Interest rates on savings deposits fell from 7.28 percent to 6.7 percent while the weighted average lending rate declined from 17.68 percent to 17.34 percent. With the fall in the savings and lending rates, the intermediation spread increased from 10.4 percentage pints to 10.64 percentage points. This is a very unfortunate development, especially at a time when lower lending rates of the commercial banks can serve to stimulate investment in the economy.




c. Exchange Rate


3.17 During the year, the Guyana dollar depreciated by 2.6 percent, settling at G$189.50 to US$1 at end-December. The rate remained relatively stable for the first half of the year with the Central Bank intervening once to dampen speculative pressures. Most of the depreciation occurred in the second half of the year and that was consistent with higher seasonal demand.




3.18 The volume of all foreign currency transactions was US$1.8 billion, 2.6 percent higher than in 2000. The total cambio transactions amounted to US$848.7 million while the Central Bank accounted for US$285.7 million or 15.9 percent.




d. Wage Rate


3.19 Mr Speaker, following inconclusive discussions with the major union representing public servants, the Government announced and paid a 5.5 percent across-the-board increase in wages and salaries. This brought the minimum wage to $20,045 per month. With the exception of teachers, the increase was also granted to other categories of workers and pensioners. Teachers were paid salary increases ranging from 6 to 17.5 percent.




F. Review of the Fiscal Accounts




1. Central Government




3.20 Mr Speaker, the events that took place in 2001 posed severe challenges for management of the fiscal accounts. In an effort to limit the deterioration of the fiscal deficit, in light of lower revenue collection and foreign inflows, the Government implemented many expenditure-reducing measures. However, we still managed to maintain a high level of spending in the social sector and on poverty programmes.




3.21 Current revenue (net of reimbursable Rice Levy A) was $41.4 billion, $2.6 billion or 5.9 percent less than the target. The Guyana Revenue Authority (GRA) accounted for $37.8 billion. The effort by the GRA was very commendable, especially in light of the revenue lost by the Customs and Trade Administration (CTA) in the first half of the year and in the aftermath of September 11. In particular, it estimated that the CTA lost $1.5 billion in taxes on international trade and another $525 million on domestic goods and services. As a result, the CTA was only able to collect $18.1 billion compared to the target of $19.9 billion.




3.22 On the other hand, the Internal Revenue Department (IRD) garnered $19.7 billion, $71 million more than projected. This was due, in part, to increased collection of personal income and withholding taxes, which more than offset a 4.7 percent decline in company taxes. In terms of other current revenue, the most notable performance was a 113 percent increase in Bank of Guyana profits, which rose to $823 million. In keeping with its commitment to support the industry’s restructuring and modernisation, the Government remitted all of the Sugar Levy payable by the Guyana Sugar Corporation (Guysuco) for 2001.


3.23 Mr Speaker, total expenditure (net of principal repayment and reimbursable Rice Levy A) was $63.5 billion. Of that amount, current expenditure was $47 billion. Personnel emoluments increased to $14.7 billion while spending on other goods and services rose by 10.6 percent to $9.1 billion, partly in response to higher expenditure in the social sector and the demands of hosting the most efficient and transparent General Elections ever. Current transfers were $9.6 billion, reflecting, in part, a $1.1 billion transfer to GPL and a $567 million increase in pensions. In addition, Linmine was the recipient of $2 billion in transfers from the Treasury.




3.24 Interest payments declined by $740 million to $11.6 billion. Domestic interest was $268 million less than in 2000. External interest due before the stock of debt reduction was $6.8 billion, compared to $7.3 billion the previous year. However, actual interest paid was $3.2 billion compared to $4.9 billion in 2001. Capital expenditure (net of transfers and loans to public corporations) was $16.5 billion.




3.25 The current deficit of the Government was $5.6 billion while the overall deficit after grants and HIPC debt relief was $11.1 billion (8.3 percent of GDP). The deficit was adequately financed by net external borrowing of $7.9 billion and the utilisation of $3.2 billion of government deposits with the banking system.




2. Public Enterprises




3.26 Mr Speaker, while the operations of the public enterprises were negatively affected by developments in 2001, the very encouraging performance of a few of them enabled a favourable overall position. Total receipts were $46 billion, 1.2 percent more than the previous year. At the same time, total operating expenses were $41.8 billion, $1 billion less than budgeted. As a result, the current savings of the enterprises increased to $4.2 billion compared to $1.1 billion in the budget and $3.1 billion in 2000. Similarly, the surplus improved to $2.4 billion, from a projected deficit of $2.2 billion and a surplus of $975 million in 2000. Taxes paid by the enterprises were $417 million while dividends were $20 million.




3. Non-Financial Public Sector




3.27 The combined operations of the Central Government and the Public Enterprises resulted in a current deficit of the non-financial public sector of $1.4 billion. The overall deficit after grants was $8.7 billion (6.5 percent of GDP).




G. Public Sector Investment Programme




3.28 Mr Speaker, over $16.5 billion was spent on the Public Sector Investment Programme (PSIP), an achievement ratio of 99 percent. I would now outline the achievements in the various sectors.




1. Physical Infrastructure Sector




3.29 Mr Speaker, our investment on our road network is abundantly evident in every region and community. We have completed substantial components of our programme to re-pave our major roads and highways, including the Essequibo Coast Road, Railway Embankment Road, East Coast Highway to Mahaica, and Soesdyke/Linden Highway, which was extended to Burnham Drive, Wisroc Junction and the McKenzie Bridge. Additionally, works were undertaken on the East Bank, West Demerara and West Berbice Highways while construction of the Crabwood Creek to Moleson Creek Road was completed.




3.30 We improved several streets in the city, towns and villages, in the process transforming many mud dams and potholed-streets into all-weather roads and streets. This has improved the aesthetics of the environment, reduced transportation costs and vehicle maintenance, and provided comfort to our people. Among our accomplishments were the construction, repair and rehabilitation of roads in Georgetown, for example, Critchlow Avenue, Thomas Road, and Mandela Avenue; and in outlying areas such as La Retraite, Best Village, Enterprise, Coldingen, Rosignol, Bush Lot, Albion and Tain.





3.31 Mr. Speaker, in addition to their improvement, the Government is also concerned about the safe use of our roads. In this regard, we have secured the services of a consultant engineer to conduct a national road safety study for the installation of traffic lights, road markings and streetlights across the country. Also, training programmes and public seminars are envisaged to educate our people in safe use of the roads.




3.32 In terms of bridges, work was executed on the Dunkeld, Westbury and Walton Hall Bridges on the Essequibo Coast; as well as bridges at Mahaica, Greenfield, Cove and John, Success and Tucville in Demerara. Twenty scowends and thirty-six unifloats were rehabilitated on the Demerara Harbour Bridge. Also, designs were completed for sixty-two critical structures between Timehri and Rosignol, including the Mahaica and Mahaicony bridges. The contract for the supervision of the Bridges Rehabilitation Programme was awarded. Remedial works were carried out on stellings at Bartica, Parika, Vreed-en-Hoop, Georgetown and New Amsterdam.




3.33 Mr Speaker, in the air transport sector, we launched the Air Transport Reform project. Specifically, the Cheddi Jagan International Airport Corporation was established and a board of directors was appointed. A professional team has been appointed to manage the airport. Also, the Guyana Civil Aviation Authority was incorporated and the revision of the Civil Aviation Regulations was completed. Work on the privatisation of the Ogle Aerodrome reached an advanced stage.





3.34 Construction of various lengths of sea defence was undertaken at Montrose, Cornelia Ida, Mon Repos, Hague and Stanleytown while reconstruction works were started at Vergenoegen. Construction of 3400 metres of earthen dam from Brahan to No. 40 Village was completed while rip rap construction at Mon Choisie commenced. In addition, tender documents for a total of 5 kilometres of sea defence works at Capoey/Columbia, Tuschen, Meten Meer Zorg/De Kindren and Hague were completed and the supervision contract was awarded.





2. Agriculture Sector




3.35 Mr Speaker, the success of the agriculture sector rests partly on reliable sea defence and drainage and irrigation networks. Some of the major achievements in drainage and irrigation over the past year were the construction and rehabilitation of sluices at Bellamy Canal, Endeavour, Leguan, Golden Grove, Helena No. 1, Belfield, Coverden, Triumph, Longsdale, Borlan, Adventure, Eversham and No. 43 Village. Reinforced concrete structures were constructed and revetment works done at the Seaforth Canal in Region 6, Craig, Handsome Tree, La Union, Capoey, and Anna Regina.




3.36 Four new structures were rehabilitated at LBI, Annandale, Triumph and Beterverwagting, and two diesel pumps were installed at Mibicuri Pump Station. In addition, under our agricultural programme, approximately twenty-six miles of farm access roads were upgraded at Numbers 70 and 71 Villages, Burma Rice Mill/ Esau Jacob, Parika Main Drain, Supernaam/ Charity II, Bush Lot/ Cotton Field, Lima/ Coffee Grove, Windsor Forest/ Coglan Dam and Hyde Park/ Mora Point. Further, cadastral and occupant verification surveys for the conversion from leasehold to freehold titles at Black Bush Polder, Garden of Eden and Vergenogen were conducted.




3. Social Sector




3.37 Mr Speaker, development of the social sector features prominently in the public investment programme. In the health sector, construction was started on Polyclinic Centres at Enmore, Lusignan and Enterprise that will provide primary and specialist health care. Work also began on a laboratory at Moruca, incinerators at Suddie, Anna Regina and Charity, and a waiting room and sanitary block at the West Demerara Regional Hospital. Health facilities at Waramadong, Ithaca and Grove were extended, while dental clinics at Matthew’s Ridge, Parika, Paramakatoi and Lethem, the Ituni Cottage Hospital and the Karrau Health Post were rehabilitated. Also, two ambulances were purchased for use by Georgetown and Skeldon Hospitals.


3.38 In the education sector, works were executed on nursery schools at Unity/Lancaster, Woodley Park, Phillipai, Paramakatoi, and Enmore/Hope, among others. At the same time, work on nineteen primary schools were completed, including schools at Overwinning, Golden Grove, Queenstown, Soesdyke, Richmond Hill, La Grange, Carlton Hall, and Warapopa. Twenty secondary schools were completed including L’ Adventure, Vryman’s Ervin, Belladrum, Uitvlugt, Annandale, Cumming’s Lodge, North Georgetown, Skeldon Line Path, Skeldon High, Linden Foundation and Christianburg Multilateral. Rehabilitation work was done on technical institutes in Linden, Georgetown and Essequibo. By the end of the year, construction of a new wing of the Berbice campus was nearing completion.




3.39 In the water sector, the potable water production, treatment and distribution networks for Rose Hall, covering the villages between Whim and Fyrish, the entire township of New Amsterdam, and Pouderoyen, from Versailles to Hague, were completed. Through these integrated systems, residents now benefit from a more reliable supply of treated water; and a superior, cost effective and pressurised distribution system. New distribution mains either were installed or replaced in areas such as Wakenaam, Taymouth Manor, Leguan, Stewartville, Friendship, Bachelor’s Adventure, Haslington, Weldaad to Paradise, Good Faith to Huntely, Number 28 Village, Lichfield, Gibraltar to Chesney, Adventure to Joppa, and Edinburgh to Korberraad.




3.40 In Georgetown, phase 1 of the Guyana Sewage and Water Commissioners project was successfully completed. The distribution networks for North Riumveldt and Sophia were completed. Water metres were installed in a number of areas, including Queenstown, Bel Air and Lamaha Gardens.




3.41 In housing, Mr Speaker, about 1,375 house lots were allocated in areas such as Plantation Farm, Mahaicony, Mon Repos, Foulis, Block 12 Non Pariel, Diamond, Section A Grove, Block 2 Herstelling, Eccles, Goed Hope South, Enmore/Haslington, and Hope Lowlands. Sixty-two squatter settlements were regularised and improvement works, which included sub-division surveys and installation of water distribution systems, were completed for areas such as Rivers View, Mahaica, Lusignan Pasture, Goed Fortuin/Vriesland, Goedverwagting, Cornelia Ida, Area Y Cumming’s Lodge, Section E Cummings Park, Hyde Park, Timehri and Martyrsville.




3.42 New housing development works, which entailed land clearing and levelling, and construction of roads, drains and water distribution networks, benefitting some 17,000 house lots, were undertaken at Lima Sands, Belle West, Parfait Harmonie, Tuschen, Zeelust, Belfield, Coldingen, Mocha, Fort Lands/Ordnance, Glasgow and Golden Grove.




4. Poverty Reduction




3.43 Mr Speaker, the Government intensified the implementation of the poor rural support project and the poverty alleviation programme. Five Water Users’ Associations, twelve Community Development Groups, eight Women’s Groups, three Fishermen’s Groups and other public interest groups in Regions 2 and 3 were formed. Approximately $45 million under a credit programme arrangement with the Institute of Private Enterprise Development (IPED) was disbursed. One hundred and thirteen million dollars was disbursed from the Poverty Programme for distressed communities.




H. Review of Institutional Developments and Reforms




1. Financial Sector




3.44 Mr Speaker, two commercial banks were approved to operate a part of their portfolio for mortgage lending. These banks joined the key operator in the sector, the New Building Society (NBS), in offering housing loans. The agreement provides for the two institutions to receive the same benefits as those enjoyed by NBS as they relate to mortgages. This move will provide a boost to the housing drive.




3.45 Fifteen months after it was granted a licence to operate, the country’s first Merchant Bank was fully established in June 2001 and immediately began offering a range of new financial products to the business community. Also, the Guyana Securities Council was formed and, currently, the regulations to operationalise the Guyana Securities Exchange are being finalised. These developments are in keeping with Government’s efforts to deepen and modernise the financial sector and the capital market.




3.46 A special task force to ensure the implementation of the anti-Money Laundering Act was announced and the Central Bank has been designated the Supervisory Authority. The Bank will establish a Financial Intelligence Unit with adequate staff and budget, and will seek the assistance of the Caribbean Financial Action Task Force (CFATF) to enable the Unit to effectively perform its functions.




3.47 Mr Speaker, a sad development in the financial sector was the demise of Globe Trust Investment Company Limited (GTICL). In keeping with its supervisory functions, the Bank of Guyana conducted continuous and detailed examinations of the accounts of GTICL over a prolonged period. It was concluded that there were unsafe and unsound banking practices that caused serious prejudice to the interest of depositors and shareholders of GTICL. Subsequently, at a meeting between the Bank and GTICL, the latter indicated that the company was facing severe financial threat in the form of liquidity, operational losses and capital inadequacy. The company was found to be insolvent and was forced to close.




3.48 In keeping with the provisions of Section 33 of the Financial Institutions Act (FIA), 1995, GTICL was ordered to present a plan aimed at restoring it to financial viability. The plan presented to the Bank was unsatisfactory. Consequently, the Bank took possession of the company, in accordance with the FIA, and on November 27, 2001, the Bank applied to the Court for compulsory liquidation under Section 49 of the FIA. The matter is currently being adjudicated.







2. Debt Reduction and Management




3.49 The Government continued to make progress in reducing the country’s debt stock, which stood at US$1.17 billion at the end of 2001. During the year, the Commonwealth Development Corporation wrote off all of Guyana’s outstanding debt totalling US$6.97 million. Also, Guyana concluded bilateral debt rescheduling agreements with Canada and the Organisation of Petroleum Exporting Countries (OPEC), within the context of the Heavily Indebted Poor Countries (HIPC) Initiative. The fall in the stock has resulted in a fall in debt servicing from US$92 million in 2000 to US$51 million in 2001. Guyana did not reach the completion point for the Enhanced HIPC Initiative and, therefore, did not benefit from the full resources that were expected. However, several creditors decided to grant the country a freeze on debt service payments, amounting to US$15.5 million, thus adding vital budgetary support for the financing of poverty-related and social sector programmes.




3 Privatisation and Public Sector Reform




3.50 Mr Speaker, the Government forged ahead with its privatisation programme in 2001. In this regard, GNCB was brought to the point of sale while three bids were received for purchase of GNCB Trust. This latter entity was eventually sold last month for US$2.3 million. In addition, we sold 30 percent of our shares in The New GPC to the major shareholder of the company. The remaining 10 percent has been reserved for the workers. Also, the building that housed the old glassworks factory was leased to a local investor and several properties under the control of Property Holdings Inc were sold. These and other efforts realised gross investment proceeds of $483.5 million.
















3.51 Public sector reform continued apace with the following notable actions and accomplishments:




· The Government closed the Ministry of Information and created a new semi-autonomous institution, the Guyana Information Agency (GINA).


· The Lands and Surveys Department of the Ministry of Agriculture was closed and a new agency, Guyana Surveys and Lands Commission (GS&LC), was created.


· Two new autonomous agencies were created in the transport sector. These are the Guyana Civil Aviation Authority (GCAA), which is the regulatory body for civil aviation in Guyana, and the Cheddi Jagan International Airport Corporation (CJIAC), which is responsible for the management and operation of the international airport, as well as the hinterland aerodromes.




3.52 In addition, the payroll system in place at the Ministry of Finance was enhanced in 2001. A Wide Area Network (WAN) has been installed to service various Government departments. The system allows for cross year analysis to be performed and the retrieval of historical records of all employees that is vital for the computation of benefits such as pension and gratuity. As part of the wider Public Sector Modernisation Project, we intend to fully integrate the Payroll and Human Resources Systems, involving the merger of payroll database at the Ministry of Finance and the human resources database at the Public Service Ministry.




3.53 Mr Speaker, we continued to take measures to improve the efficiency and quality of government expenditure. The second phase of the Guyana Economic Management Programme (GEMP) has been completed. Among the achievements to date are the consolidation of the infrastructure to support programme budgeting, strengthening the capacity of the ministries to plan and manage expenditure, and initiation of work to modernise the treasury operations.













Key Tasks and Policies in 2002 and Beyond


4


A. Overview




4.1 Mr Speaker, in 2001, the Government embarked on an important process of developing a comprehensive economic programme that benefitted immensely from broad-based consultations throughout the length and breadth of our country. The Poverty Reduction Strategy Paper that emerged from this exhaustive process, and which is supported by our development partners, forms the basis of our medium term development goals.




4.2 Mr Speaker, no one will deny the strong link between economic growth and poverty reduction, especially where this takes place within the context of sound economic policies and a relatively peaceful industrial and political environment. In this regard, the Government has been creating an enabling business environment for private sector development, improving the quality and skill level of our labour force, rapidly improving and expanding the physical infrastructure, and pursuing good and inclusive governance. The Government will continue to implement policies that create jobs and rapidly increase income levels of our people. This process could be accelerated through the co-operation of the Members on the opposite side of this Honourable House and all stakeholders in preserving peace and stability that are so vital for attracting investment to fuel growth.




B. Creating the Climate for Attracting Investment




1. Introduction




4.3 Mr Speaker, the Government’s policy agenda to stimulate economic growth and generate jobs will concentrate on programmes that generate quick supply and labour responses and support increased private sector investments. In this connection, the Government will (i) maintain a stable macroeconomic framework; (ii) adopt sector policies to stimulate production; (iii) restructure and modernise the traditional sectors; (iv) target new growth areas; and (iv) provide systemic support to the private sector.




2 Macroeconomic Policies for Economic Growth




4.4 Mr Speaker, the Government has managed the economy with prudence and financial rectitude. In spite of the very difficult economic situation over the last three years, we have successfully deployed monetary policies to maintain the stability of the exchange rate and contain inflation. At the same time, we have limited the fiscal deficit to a range that, for the most part, has enabled us to become a net depositor with the banking system. We will continue to build on this progress.




4.5 Fiscal policy will aim to support growth, reduce poverty and increase public sector savings. In the area of revenue generation, the Government will undertake a comprehensive review of the tax system. This review will explore reform of the tax system, with a view of supporting growth and improving transparency and administration, taking into consideration Guyana’s international current and emerging international trade obligations. Efforts will be made to staff the Guyana Revenue Authority to its full complement.




4.6 On the expenditure side, emphasis will be placed on (i) improving the allocation process and the efficiency and effectiveness of current and capital expenditures in order to enhance their impact on growth and social welfare; (ii) tighter controls through, for example, the completion of the computerisation of the public sector payroll; and (iii) streamlining of the public sector. In addition, the Government will improve the public accounting process through the strengthening of Accountant General’s Department.




4.7 Monetary policy will aim to keep inflation within the targeted level and safeguard the Bank of Guyana's external reserve position. The Government will support the Bank in its quest to reduce interest rates further, improve the payment systems and diversify financial products. In addition, the Bank will strengthen its supervision department and ensure the compliance with a strengthened Financial Institutions Act.




3. Policies to Support Private Sector Development




4.8 Mr Speaker, past policies of state ownership and control in the economy stifled initiative and frustrated private sector growth. Over the years we have worked tirelessly to establish an attractive regime of incentives and we are proud of what we have accomplished so far. Today, Guyana can boast of having one of the freest economies and one of the most attractive incentives structure in the Caribbean and Latin America. We do recognise, however, that the private sector needs more support to increase its competitiveness and play a meaningful role in economic development. In this context, the Government will assist the sector in export and investment promotion, and the development and expansion of small business and cottage industries.




4.9 In the area of export and investment promotion, an investment code has been tabled in the National Assembly. Go-Invest has been re-organised and has been identified as the one-stop agency. In terms of financing, the Government has implemented wide-ranging policy measures aimed at consolidating and deepening the financial sector, including legislation to reform the banking sector, the capital market, the insurance industry. The Government welcomed the opening of the first merchant bank in Guyana and is supporting efforts by the private sector to establish a development bank. A stock market would start operations during the year and, in this regard, a Securities Commission is in place. In addition, a Commissioner of Insurance will be appointed this year. Further, the Government will work with the private sector to (i) improve the quality of products in line with international standards; (ii) put in place a dispute resolution and settlements mechanism; and (iii) support local companies to participate in overseas trade fairs.




4.10 Mr Speaker, small businesses and cottage industries have been important contributors to incomes and employment in the country. Although many of their products have been traded mostly in the domestic market, their export potential remains high. We will create a conducive environment for the regularisation, growth and development of small business and cottage industries and their eventual integration into the export economy. In this regard, this year we will enact Small Business legislation.




C. Restructuring and Expanding the Economic Base




1. Introduction




4.11 Mr Speaker, sugar, rice, forestry, bauxite and gold industries have served our country well. They have provided our people with jobs, contributed taxes to the treasury and earned valuable foreign exchange. For a variety of reasons, these industries have been experiencing difficulties that threaten their long term survival. As a responsible Government, we have been making strenuous efforts to re-organise and restructure them so that they can return to economic and financial viability.




2. Sugar




4.12 We will work with the enterprises that will remain in the public sector. The Government will begin a massive restructuring and modernisation of Guysuco, in June 2002, in order to increase the industry’s competitiveness in anticipation of the erosion of prices in preferential markets over the medium to long term. The project, which is expected to cost US$110 million, includes the construction of a new factory in Skeldon and increased cultivation of cane in the Berbice area. This should result in increased output of sugar of about 450,000 tonnes and reduced cost of production to approximately 11 United States cents per pound of sugar over the next five years.




4.13 At the same time, the corporation will diversify its product mix and markets. It plans to package sugar in new sizes with longer shelf life, pursue the manufacture of organically-grown sugar, and explore the possibility of establishing a sugar refinery in Berbice. Further, it will seek new markets in the Caribbean and Latin America. In this regard, the recently-signed partial scope trade agreement between Guyana and Brazil provides Guysuco with a new outlet for its sugar.




3. Rice




4.14 Mr Speaker, the rice industry faces many problems, threats and challenges. As part of the recovery efforts, the Government embarked on a ten-year, strategic plan. The plan’s vision is to develop an integrated, sustainable and profitable industry producing and marketing rice for the benefit of all Guyanese. It focuses on four areas i) research to increase production through increased yields and adapting rice varieties that are resistant to pests and diseases; (ii) processing, which entails producing higher quality rice for export; (iii) marketing, which will focus on expanding market share and developing new markets, especially in non-traditional areas; and (iv) support services, including drainage and irrigation, land reform, finance and inputs.




4.15 In the interim, the Government has reached an agreement with the commercial banks to reschedule the debts of farmers with principals below $10 million. This is intended to serve as a stimulus to allow farmers to be fully involved in the implementation of the strategic plan. Those farmers with larger debts have been given the opportunity to negotiate the restructuring of their loan portfolio on a case-by-case basis. The industry will also benefit from financial assistance provided by the European Union, to help it to compete effectively in the globalised environment.




4. Bauxite




4.16 Mr Speaker, with respect to bauxite, the Government has made repeated and strenuous attempts to find interested buyers for the two main state-owned bauxite companies, which have a combined deficit equivalent to 1.5 percent of GDP. A foreign mining company with business in Guyana has shown some interest, which we are pursuing. If successful, it could lead to the privatisation of one of these companies. Regardless of the outcome, the Government is committed to the comprehensive restructuring of the sector, with a view of channelling the current subsidies into job-creating and poverty-reducing activities in the affected communities.




5. Forestry and Gold




4.17 Mr Speaker, the Government is working with the operators in the forestry and gold mining sectors to improve and expand their operations. We have supported Omai Gold Mines Limited in its search for new gold-bearing deposits and we are working with the artesinal miners and other companies in mining and forestry to ease the constraints to increased production. Two energy-related projects, costing US$10.4 million will start this year. We will continue to promote the sustainable use of our resources in an environmentally-friendly manner.




6. New Growth Areas




4.18 Mr Speaker, apart from the restructuring exercise, we will pursue new growth areas in the traditional and non-traditional sectors. In this connection, our medium term agenda will incorporate policies that benefit manufacturing, agriculture, tourism and technology. In the manufacturing sector, the Government will develop garment-manufacturing parks in strategic locations to stimulate production and export. In 2001, US$15.9 million was invested by the private sector in 9 projects in light manufacturing and textiles and garments. This ear, we expect another US$7.7 million to be invested in these activities.




4.19 In agriculture, several priority areas have been identified, including fisheries, other crops, cut flowers and agro-processing. Mechanisms are being put in place to boost the export of fish and fish products to the European Union while a five-year plan has been developed for organic agriculture with special emphasis on cocoa, peanuts and cashew nuts. We will utilise the expertise of the Food and Agriculture organisation to introduce sustainable cut-flower, honey and integrated fish and crop farming industries. And we intend to take advantage of being certified free of the foot and mouth disease to revive the cattle industry. Last year, US$34.3 million was invested in 12 new projects in the areas of fish processing, poultry farming and processing and wood products. This year, we expect another US$8.5 million to be invested in aqua farming, cattle farming and fish processing.




4.20 In tourism, Guyana will continue to draw heavily on its natural resources to develop specialised markets in areas of eco-tourism, adventure tourism, and cultural and heritage tourism. Initiatives in 2002 include the establishment of the Tourism Authority, the development of a tourism website critical to our marketing and promotion strategies, revamping of the incentives regime, and development of sub sector strategies for accommodation and air access. Funding will be sought for the development of a Hospitality School in order to equip our service providers in the industry. Mr Speaker, last year, investment in this sectors amounted to US$4.2 million, while another US$1.8 million is planned for this year.




4.21 In technology, we intend to aggressively target this sector. Already, we have been able to attract three projects, worth US$5.4 million. This year, another US$8.2 million will be invested in Demerara and Berbice shortly to establish two tele-centres and a medical transcription service.




D. Social and Human Development




4.22 Mr Speaker, in addition to maintaining stable macroeconomic policies and improving good governance, the Government’s strategy has emphasised the development of the country’s greatest resource, that is, its people. This is why, from a modest 8 percent of GDP in 1992, expenditure on social and human development has risen steadily through the years to 14.7 percent of GDP in 2001. This is a reflection of the deliberate policy of the Government to increase spending in this area, both in terms of the GDP and as a share of the Budget. As a result, spending on education, health, housing and water, and poverty-related programmes have grown appreciably.










1. Education




4.23 The Government’s goals for education are to reduce illiteracy rates, attain universal primary education, increase secondary school enrolment, and improve the quality and relevance of education for all Guyanese, especially children. To achieve these goals, our focus will centre on (i) reforming the curriculum and introducing information technology; (ii) improving access to secondary schools; (iii) improving the quality of teachers; (iv) complementing teacher’s salaries with non-monetary incentives; (v) improving physical facilities to reduce overcrowding; (vi) targeting functional illiteracy among out-of-school youth; (vii) providing targeted support to the poor; and (viii) strengthening the Ministry of Education.




4.24 Investment in the education sector has risen from 4.1 percent of GDP and 7.6 percent of the Budget in 1992 to 8.4 percent of GDP and 17.1 percent of expenditure in 2001. This year, we propose to increase expenditure in this sector to 8.5 percent of GDP or 17.2 percent of the Budget, which is substantially larger than the previous year’s revised expenditure.




4.25 Within the first half of 2002, we expect to close the Primary Education Improvement Project (PEIP). Under this Project, 37 new schools were built, 68 were rehabilitated, and over 15,000 pieces of school furniture and fittings were supplied to primary schools nation-wide. In terms of software, over 1 million copies of textbooks for Levels I to VI were printed and distributed, over 1,300 teachers and educators were trained in disciplines such as reading, mathematics, testing and measurement, interactive radio, and information technology. In addition, 80 computers were purchased and installed to support information systems in education.




4.26 Building on the success of the PEIP, we have designed a five-year Basic Education Access and Management Systems (BEAMS) Project, which is expected to cost $7.5 billion. The focus of the project will be the upgrade, extension, rehabilitation and construction of primary, secondary and multilateral schools. A key component will address schools’ performance, including student assessment and testing, curriculum development, innovative technologies, teacher preparation and in-service training and on a comprehensive Education Management Information System (EMIS).




4.27 At another level, the Secondary School Reform Project (SSRP) will be intensified. We have budgeted $645 million to be spent on construction, re-construction or rehabilitation of twenty schools, including Charlestown Secondary, Paramakatoi Community High, New Amsterdam Multilateral, Kwakwani Community High, Anna Regina Multilateral, Bartica Secondary, and Port Kaituma Community High Schools. At the same time, work will continue under the United Kingdom-funded Guyana Economic Advancement Project (GEAP), which is valued at $4.1 billion, and the Canadian-supported Guyana Basic Education Training Project (GBET), which will cost about $975 million. Even as these programmes are being implemented, we are engaged in discussions with the Caribbean Development Bank for a Technical and Vocational Training Project that is likely to cost $2 billion. Further, we are pursuing an Early Childhood Education Care and Development Project to be jointly funded by the Government, DFID and UNICEF.




4.28 Mr Speaker, as we strive to enhance and develop our longer-term programmes, we are not unmindful of the immediate and pressing needs at hand. In this regard, $380 million of our own resources have been provided to construct, rehabilitate and or refurbish other educational facilities such as North Ruimveldt Multilateral, Tutorial High, St. Gabriel’s Primary, St. Stanislaus College, Kingston Nursery, St. Sidwell’s Primary, Wallaba Primary, De Willem Nursery, Mahaicony Secondary, Moleson Creek Primary, Waramadong Secondary, Mahdia Secondary, Kaikumbay Primary and Watooka Day Primary Schools, and the Dormitory at Wakapoa Primary School. Also, we have allocated $800 million to expand and equip both campuses of the University of Guyana, complete the laboratory at the New Amsterdam Technical Institute, extend and upgrade facilities at the Linden Technical Institute, provide additional facilities at the National Library, purchase furniture and equipment for schools throughout the country, and develop and print more textbooks for primary and secondary schools.


2. Health




4.29 Mr Speaker, as in the case of education, expenditure in the health sector has grown appreciably, rising from 2.7 percent of GDP and 5 percent of the Budget in 1992 to 3.4 percent of GDP and 7.4 percent of the revised expenditure in 2001. In 2002, the Government has increased the resources in this sector to 4 percent of GDP or 8 percent of the Budget. This year, the Ministry of Health will begin a study of health systems, including an inventory of facilities, validation of health statistics and analysis of vertical programs. It will also establish a Materials Management Unit within the Ministry to rationalise and improve the distribution of drugs and medical supplies. This will considerably improve the delivery of medical supplies and drugs and provide better control of inventories.


4.30 The Government will approve the National Strategic Plan for HIV/AIDS. Within the context of this plan, we will conclude a comprehensive HIV/AIDS package, including the strengthening of the Ministry of Health’s capacity to deal with this pandemic through building management capacity, developing health promotional programmes, strengthening diagnosis, improving surveillance, providing adequate and affordable drugs and medicines. The cost of this package is estimated at $528 million.


4.31 Mr Speaker, for some time now we have been able to develop and improve much of our health infrastructure through SIMAP I and II and BNTF 2, 3 and 4. We have successfully negotiated successor programmes, with SIMAP III totalling US$22.2 million and BNTF 5, US$8.3 million. Both of these projects will commence shortly. Additionally, a US$10 million nutrition programme, which is to be funded by the IDB, will be launched this year. Beyond these programmes, we will continue with other critical infrastructural works at Georgetown Public Hospital Corporation and hospitals and health posts in the regions. To this end, we will (i) commence construction of phase 1 of an In-Patient Building; (ii) rehabilitate the Pharmacy Bond, Linden Hospital Complex, Fort Wellington Hospital, and the Accident and Emergency Units at Skeldon and Linden; (iii) extend the Physiotherapy Department of West Demerara Hospital; and (iv) purchase medical and laboratory equipment for the entire system. We have budgeted $350 million to execute these works.




3. Housing




4.32 Mr Speaker, in order to help improve property rights, increase land ownership by the poor, facilitate the settlement of squatters, and provide title deeds that enable access to credit from financing institutions, the Deeds Registry will be fully computerized. In addition, the Government will (i) expedite the transfer of public land for residential settlement; (ii) accelerate squatter area regularisation, where appropriate, and relocate squatters from land that is unsuitable for occupation; and (iii) advance the institutional strengthening of CH&PA.




4.33 Also, this year we will intensify the implementation of a $5.4 billion Low Income Settlement Project. In addition, another $1.8 billion from the European Union will be used to support the housing development programme. Together, these projects will improve and develop new housing sites, and provide the basic infrastructural facilities such as roads, drains, water supply and environmental s