Budget structure flaws exposed by PPP/C
…”new kid on the block” Finance Minister blunders The Consideration of the Budget Estimates were delayed for several hours on Monday morning after the People’s Progressive
Party/Civic (PPP/C) disclosed that the current structure of this year’s Budget Estimates violates two pieces of legislations that were recently amended by the A Partnership National Unity + Alliance For Change administration – the Constitutional (Amendment) Act of 2015 and the Fiscal Management and Accountability (Amendment) Act of 2015. These Acts allow for certain state entities to be given Constitutional anonymity and form independent budget agencies in the estimates. As a result of the discovery, the members of Business-Sub Committee were called into a meeting following a letter from the parliamentary opposition to the Speaker of the House and Chairman of the Committee, Dr Barton Scotland. During a press conference following the meeting, former Attorney General and Legal Affairs Minister, Anil Nandlall, explained that after examining the estimates in its current form, it was found to be in violation of and inconsistent with the two pieces of legislations. According to Nandlall, following the discussions the A Partnership for National Unity + Alliance For Change (APNU+AFC) Government had accepted that the estimates indeed violates the two pieces of amended laws. Nevertheless, the PPP/C Parliamentarian stated that the ruling administration has undertaken to correct those estimates. Subsequently, the two parties have agreed to have the constitutional blunder corrected by way of a Consensus Motion that was to be drafted by the end of Monday. Nandlall outlined that this motion will bring the estimates in conformity with the two new pieces of legislation. Elaborating on the explanation, Opposition Chief Whip Gail Teixeira pointed out that while in the beginning government seemed to be reluctant to the PPP/C’s position, in the end they were able to reach some consensus. “They
two sides will work on the motion and it is hoped, that we would be able bring to the house before the end of the Estimates a
Consensus Motion to correct and to bring the estimates into conformity with the Constitutional Amendment Act and the FMA Amendment Act, both of 2015,” she noted. In addition, the former Presidential Advisor under the PPP/C regime, outlined that they have to clean up the 2003 Third Schedule, where a number of the Rights Commissions were improperly placed under the Ministries. She noted that this will also be part of the motion. However, Teixeira explained that the Constitution (Amendment) Bill was assented to on July 10th, a month before the budget was presented by Finance Minister Winston Jordan, while the FMA Act was assented to on August 5th, also before the presentation. “You can call him (Jordan) ‘the new kid on the block’, but certainly these are indications of incompetence or not being advised properly on these issues…these issues were very big issues in the last budget and therefore greater attention should have been paid to making sure that the government and the estimates were in compliance with their own Acts that were brought,” she declared. Moreover, Nandlall had pointed out that the Finance Minister Winston Jordan had initially maintained he was in compliance with the new laws, however it was Vice President Greenidge, a former Finance Minister under the People’s National Congress (PNC) regime, who accepted that Government had erred. On this note, former Junior Finance Minister Bishop Juan Edgehill pointed out that it seems as though they Government officials are not working in a cohesive manner, noting that the left hand does not know what the right hand is doing. “There seems to be a lack of communication because Mr Greenidge played no small part in remedying the situation today. Had Mr Greenidge and Mr Jordan had conversations at Cabinet, where this budget should have been presented before it came here, these things would have been pointed out. Mr Greenidge upfront recognised that there is problem and must be corrected,” Edgehill
stated. Meanwhile, Government was quick to respond, admitting that a couple of the Constitutional agencies were not fully reflected in the estimates. Foreign Affairs Minister and Vice President, Carl Greenidge, explained that the opposition brought to Government’s attention that tabulation of the estimates did not conform strictly with the amended laws. “They brought to our attention that a couple of the Constitutional agencies hadn’t been fully shown in the estimates in the manner that was set out in the Constitutional (Amendment) Act and more importantly, the Fiscal Management and Accountability (Amendment) Act,” he outlined. Furthermore, questioned by media operatives about the reason behind this blunder, Greenidge sought to justify, saying that “life is a little more complicated than it otherwise appear”. He said “In the course of preparing the tables themselves, there are a couple of places where there weren’t properly reflected”. Nevertheless, the considerations of the estimates continued in the Committee of Supply on Monday. While the examinations of these Constitutional bodies were deferred, the Committee went ahead with discussing the budgetary agencies. She explained that if completed, Consensus Motion will be laid today and would be considered on Wednesday.
On today’s date, the Committee is expected to scrutinize the Budget Estimates for the 10 Administrative Regions. Asked whether the three days period would be extended given the four hours delay on Monday, Prime Minister Moses Nagamootoo maintained that they will not extend the allotted three days for the consideration of the estimates. “We had given now, in the three days, enough hours – 10 and a half hours – that has literally rolled over into a full day, which was what the opposition was calling for. So I don’t see us going beyond the Sub-Committee’s recommendation at this point in time,” he said. However, Nagamootoo added that given Monday’s half-day delays, he is unsure of how the system can be tweaked to allow for the full consideration of the estimates.