Constitutional provisions will be invoked to deal with budget cuts – Finance Minister

Georgetown GINA, July 18, 2012 -- Source - GINA

Today’s court ruling on the budgets cuts means that the constitutional provisions that are available to Government for access to funding will be invoked by the Finance Minister. This was made clear today by Minister of Finance Dr. Ashni Singh during a live television programme on the court ruling on the case aired on the National Communications Network.

The programme was moderated by CEO (ag) of NCN Michael Gordon, who spoke with Minister of Legal Affairs and Attorney General Anil Nandlall and the Finance Minister.

Minister Nandlall stated the ruling clearly indicates that the National Assembly has acted outside of the ambit of its Constitutional powers when it reduced the National Estimates of 2012 as presented by the Finance Minister.

Minister of Legal Affairs Anil Nandlall makes a point during a discussion on Chief Justice's ruling on Govt's Budget cut case. Finance Minister Dr. Ashni Singh and moderator, NCN's Michael Gordon are also in photo

Noting that his arguments were vindicated by the ruling, he added that the Constitution gives the National Assembly the power to approve or disapprove of the National Estimates and not cut it. Minister Nandlall said the key issue in the case brought before the Court was the meaning of the word ‘approve’ which was considered by the Chief Justice (ag) Ian Chang.

Minister Nandlall argued that approve cannot mean the power to reduce, noting that the key to winning the case was the interpretation of Article 218 of the Constitution. He stated that this Article “must be interpreted in light of our constitutional structure; in light of the doctrine of the separation of powers; in light of the different powers and responsibilities devolve upon the different branches of Government in that Constitutional structure.”

He noted that the Constitution places the nation’s finance in the hands of the Executive; in Parliament, the responsibility of over sighting the Government in relation to finance and rests in the courts the power to review the entire process should the occasion arise, to ensure that the Legislature and the Executive confine themselves to the role provided for and contemplated by the Constitution.  It was in this matrix of the Constitution’s structure that the case was reviewed and argued, Minister Nandlall stated.

The CJ’s ruling cleared that the power resides in the Finance Minister to determine how he is to treat with the inadequacies and the insufficiencies of the Estimates, “because the estimates were affected by a reduction,” Nandlall stated.

The CJ also identified the various constitutional and statutory provisions which cumulatively confer upon the Minister of Finance a plenitude of power where in the Appropriation Act, which the Estimates have become, the amounts stated are insufficient, the Finance Minister is free to access funds via the Consolidated and Contingency Funds as he determines to be fit and appropriate.

Notwithstanding the fact that this power resides solely with the Finance Minister, the Court case was entered into out of an abundance of caution by the Administration, Minister Nandlall stated. Government did not want to be accused of having the Finance Minister accessing the Treasury without any legal authority.

It was a move considered to be in keeping with good governance and Parliamentary serenity and in recognition that ‘each of the constitutional poles of power must stay within their defined areas’, the Legal Affairs Minister stated. It was also made to avoid a constitutional crisis.

Echoing Minister Nandlall’s statements, Minister Singh said the decision presents a comprehensive dissertation on a number of important matters relating to Guyana’s Constitution and specifically deals with Articles that govern finances.

He noted that within the decision there are several very important pronouncements made by the CJ which remove completely all doubts about the respective roles of the various branches of the State in particular as it relates to the principles of separation of power between the Legislature and the Executive.

 
Minister Singh stated that the CJ’s ruling explicitly stated that the National Assembly acted outside of its constitutional remit in imposing cuts on the budget, a principle that coincided with Government’s interpretation of the constitution and coinciding with the representation made by the AG before the court. “We welcome now that acceptance and embrace these principles and its elaboration in the Chief Justice’s ruling,” Minister Singh said.

 
He noted that the decision also presents a detailed articulation of the authorities that are invested in the Executive and, in particular in the Office of the Minister of Finance as it relates to the management of finances, clearly stating authority for determining that national estimates of expenditure resides  with the Finance Minister.   The ruling also made it clear that the authority for making withdrawals from the Consolidated and Contingency funds, depending on the circumstances, resides with the Finance Minister.

Minister Singh said the Court’s further declaration “that it will not arrogate to itself the roles that are constitutionally assigned to the Finance Minister” is another very important principle that captured the Constitution and is now reaffirmed in the Court’s decision.

He emphasised that an important principle that reposes in the Executive authority and responsibility as it relates to fiscal matters, “is captured very clearly in our Constitution, where the Constitution says that financial matters should only be taken to the National Assembly with the prior approval and consent of the Cabinet.”

This, he said, therefore clearly indicated that the authority as it relates to certain financial matters repose and reside within the Executive and the Government.

“That includes the current expenditures, matters that includes reposition of revenue measures that includes the introduction of new taxes and adjustment of taxes ….the Constitution is very clear about that and what we saw in the Opposition endeavouring to use their one seat majority in the National Assembly to impose a cut to the budget presented by the Government, presented the collision with this Constitutional principle that resides financial matters within the purview of the executive,” the Finance Minister declared.

 
He stated that the decision is detailed in articulating and explaining these issues and makes very definitive pronouncements on them whilst reiterating the Executive authority, particularly the Finance Minister’s authority as it relates to current expenditures.