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FM
Former Member

‘Definitive answer’ to budget cuts lies with judiciary

 

– HPS
THE 2014 Appropriations Bill has not as yet been placed before President Donald Ramotar for assent, according to Head of the Presidential Secretariat, Dr. Roger Luncheon.That bill reflects the budgetary allocations approved by the National Assembly. This year, the combined Opposition amended the National Estimates by cutting a whopping $37.4B from the allocations of $220B; making this, the third consecutive year of cuts under President Donald Ramotar’s administration, the largest reduction in the estimates since the commencement of the 10th Parliament.

The National Budget for 2014 was passed by the National Assembly on April 16.

Dr Luncheon, at a post-Cabinet news conference yesterday, made it clear that in the absence of a “negotiated solution”, the definitive answer to the challenge of the budget cuts lies in the hands of the interpreters of the Constitution — the Judiciary.

On January 29 this year, Acting Chief Justice Ian Chang, handing down his decision in the High Court, ruled that the National Assembly has no right to cut the National Budget. In a preliminary ruling given in June 2012, the CJ had ruled that the National Assembly had a role to either approve or disapprove of the National Estimates, not to cut them.

RULING NOT STAYED
A Notice of Appeal of Chang’s decision was filed in February by Leader of the Alliance For Change (AFC), Attorney-at-Law Khemraj Ramjattan, on behalf of Speaker of the National Assembly, Raphael Trotman, who was listed as the appellant in the litigation.

Dr Luncheon pointed out that there has been no pronouncement on the appeal, nor has the January ruling of the CJ been stayed.
The HPS said, “The ruling’s provisions are enforceable pending the outcome of the appeal…the CJ’s ruling removed the Opposition’s options to reduce funding of programmes. His ruling restricted the Opposition’s options to either approving or disapproving.”

He added that it is unfortunate that the timeframe for negotiating a compromised solution was set by the Constitution and is of short duration. “Constitutionally, an Appropriations Bill is due at the latest by the end of the fourth month of the fiscal year, at the end of April,” Dr Luncheon explained.

He also lamented the fact that the Opposition’s neglect “thwarted” attempts at negotiations, even within that short timeframe.

“The Parliamentary Committee of Supply’s decision, for all intents and purposes, reflected the majoritarian position of the Opposition….The Opposition selectively did not approve funding, and essentially determined the outcome of the provisions of the 2014 Appropriations Bill…it makes zero funding for many Government sectors and entities.

The Opposition’s option of non-approval, given by the CJ, was taken to the extreme,” Dr Luncheon said. The result, he noted, is the 2014 Appropriations Bill, which is more “draconian” than the 2013 and 2012 Bills.

Last year, the combined Opposition cut the Budget by $31B; and in 2012 by $21B. “In this 2014 version, the Opposition in Parliament has not approved funding for Government sectors. That, if non-funding remains unchanged, essentially prevents funding to all programmes and activities in those sectors,” Dr Luncheon told reporters yesterday.

IMPACT
The HPS acknowledged the dire consequences of the non-funding, particularly the impact on Government’s ability to execute its mandate. “It is obvious that the Executive’s mandate to govern cannot be discharged without adequate financing,” he said.

Under the allocation for the Office of the President, the cuts include: $245M for the Presidential Guard services; $95M for the provision of developmental and humanitarian aid, among other initiatives; $10M for the Office of the First Lady; $73.5M for the Guyana Energy Agency; $119M for the Guyana Office for Investment (GoInvest); $122M for the Institute of Applied Science and Technology (IAST); $17M for the Integrity Commission; and $28.5M for the Office of the Commissioner of Information.

The other cuts include: $18.5B for the LCDS initiatives; $450M for loans for University of Guyana students; $725M for the poverty alleviation programme; $7M for the different rights commissions; $795M for the Basic Needs Trust Fund; and $4M for support to non-governmental organisations and the private sector.

The following programmes were also decimated: the Specialty Hospital – $910M; upgrading of regional and district hospitals, including Port Kaituma, Kwakwani, Linden, Bartica, Eye Surgery Operating Room at Linden etc. – $360M; ambulances, ATVs and boats – $42M; surgical equipment and instruments – $32M; the Amerindian Development Fund – $1.1B; other Amerindian programmes, such as ATVs, tractors etc. – $40M; the Cheddi Jagan International Airport (CJIA) modernization project – $6.6B; Civil aviation – $50M; and hinterland airstrips – $185M.
By Vanessa Narine

 

extracted from Guyanachronicle

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The National Budget for 2014 was passed by the National Assembly on April 16.

 

Dr Luncheon, at a post-Cabinet news conference yesterday, made it clear that in the absence of a “negotiated solution”, the definitive answer to the challenge of the budget cuts lies in the hands of the interpreters of the Constitution — the Judiciary.

 

On January 29 this year, Acting Chief Justice Ian Chang, handing down his decision in the High Court, ruled that the National Assembly has no right to cut the National Budget. In a preliminary ruling given in June 2012, the CJ had ruled that the National Assembly had a role to either approve or disapprove of the National Estimates, not to cut them.

Acting Chief Justice Ian Chang's decision prevails until a higher legal authority makes makes changes or a different final decision.

FM
Last edited by Former Member

Resorting to the courts will not solve Budget issue – Nagamootoo

April 24, 2014 | By | Filed Under News 

Alliance for Change (AFC) Member of Parliament and Vice Chairman Moses Nagamootoo says the legal avenue which Government has  signaled it might pursue with respect to the non approvals made by the combined Opposition over the 2014 Budget, will not solve their concerns. According to Nagamootoo the Government always has a legal avenue. “We can’t prevent them from going to court if they feel that way. We understood the interpretation that was given by the Chief Justice in what is called the Budget Cut Case; there is always an avenue for the Government to go that way rather than seeking a political solution.”

AFC Vice Chairman Moses Nagamootoo

AFC Vice Chairman Moses Nagamootoo

He outlined that Government could argue that the non approval of the entire programme was contrary to  Chief Justice Ian Chang’s ruling which he asserted “is their interpretation.” However, according to the AFC Vice Chairman, resorting “to the court is not going to solve what is clearly a matter that ought to find a political solution.” Nagamootoo further outlined that he doesn’t “think the Chief Justice could tell them that we could vote for a Specialty Hospital or the Amaila Falls, the Chief Justice cannot tell the Parliament what to do” and asserted, “that is the dilemma…. the Executive is seeking the intervention of the Judiciary in an area that concerns the autonomy of the Legislature.” The National Assembly according to Nagamootoo “clearly has responsibility to protect the public purse and we believe that’s what has happened. On this occasion the Opposition did not cut, the Opposition did not amend; it was the Minister of Finance who, having seen the intention of the Opposition in the Committee of Supply to disapprove certain allocations in actual sense proposed to the Government to consider altering the figures.” He continued that the Finance Minister as representative of the Executive who reported to the National Assembly what happened in the Committee of Supply in reporting to the Assembly “presented a figure to the National Assembly that the Estimates be approved with amendments …it means that at that point in time it was the Minister of Finance who proposed the amendments.” Nagamootoo posited further that the AFC didn’t cut anything; the Committee of Supply indicated its disapproval of certain aspects and it was available to the Minister of Finance to say whether or not Government would wish to amend. “So it was the Minister of Finance representing the President who actually proposed the amendments to the Estimates and the National Assembly having approved the estimates as amended; the Finance Minister then brought the Appropriation Bill to have the sum appropriated from the Consolidated Fund in that amount as he amended it” said Nagamootoo. He explained that it was the entire National Assembly that voted on a motion by the Minister of Finance. “So it was the Minister of Finance who moved the motion that the Estimates be approved as amended meaning he acted on behalf of the Executive to amend the Estimates after the Committee of Supply which is a Committee of the House, it does not have more power than the House.” According to Nagamootoo, that’s why the Speaker of the National Assembly has repeatedly said “after a vote is taken in the Committee of Supply by non-approving it, it is actually making a proposal for amendment not actually amending.” He said the Government will have to decide whether it will put the estimates as submitted, in which case it would then have been available for the AFC to vote on the entire Estimate either in favour or vote against. “The Minister of Finance did not put the Estimates as tabled so it was by the Ministers own hand that the Estimates was altered so if they want to go to the court for an interpretation of what the Minister of Finance did, they can do that.” Nagamootoo asserted that he doesn’t “believe that the Minister of Finance is reposed with the final wisdom… he has acted and he may wish to now go and ask the court to interpret whether his actions was contrary to the constitution…I don’t know if it makes any sense having acted to now go and ask the umpire to decide whether he was leg before wicket.”

Mitwah
Alliance for Change (AFC) Member of Parliament and Vice Chairman Moses Nagamootoo says the legal avenue which Government has signaled it might pursue with respect to the non approvals made by the combined Opposition over the 2014 Budget, will not solve their concerns. According to Nagamootoo the Government always has a legal avenue. “We can’t prevent them from going to court if they feel that way. We understood the interpretation that was given by the Chief Justice in what is called the Budget Cut Case; there is always an avenue for the Government to go that way rather than seeking a political solution.”

 

Resorting to the courts will not solve Budget issue – Nagamootoo

April 24, 2014 | By | Filed Under News

Court decisions always take precedence over political arrangements.

FM
Last edited by Former Member
Originally Posted by Demerara_Guy:
Alliance for Change (AFC) Member of Parliament and Vice Chairman Moses Nagamootoo says the legal avenue which Government has signaled it might pursue with respect to the non approvals made by the combined Opposition over the 2014 Budget, will not solve their concerns. According to Nagamootoo the Government always has a legal avenue. “We can’t prevent them from going to court if they feel that way. We understood the interpretation that was given by the Chief Justice in what is called the Budget Cut Case; there is always an avenue for the Government to go that way rather than seeking a political solution.”

 

Resorting to the courts will not solve Budget issue – Nagamootoo

April 24, 2014 | By | Filed Under News

Court decisions always take precedence over political arrangements.

Tell that to Sooba and Ramotar.

Mitwah

Ram and McRae says the budget seems to contain only a shopping list for Expenditure while offering nothing on employment creation and the critical issues of corruption and better public sector financial management.

“Indeed, there is growing evidence that the country’s financial management is under serious threat, despite regular warnings. Despite the usual grandiloquence there is no real evidence of a central theme or the direction in which the Government proposes to take the country”, the chartered accounting firm said in its conclusion.

It charged that the budget placed very little attention on job creation and none on the National Insurance Scheme (NIS), which it says is still reeling from the loss of monies in the CLICO collapse.

“Dr. Ashni Singh is not only the Minister responsible for the NIS but was also the Minister responsible for CLICO’s oversight when it collapsed. It is all the more troubling that there is such little interest in what is an equally badly executed liquidation”, Ram and McRae said.

Noting that little was said about the Amaila Falls Hydropower Project and how the need for low-cost energy will be met, the accounting firm said that concerns that there may be moves to restore the project cannot be discounted even as the Government announced a study into the feasibility of hydropower from Mazaruni.

“Indeed Ram & McRae finds it hard to understand the $16,000 million allocated for equity contribution to the Amaila Falls Hydropower Project. We believe that item alone makes this Budget incapable of approval, or in common parlance, dead on arrival”, the budget review said.

Ram and McRae contended that Singh’s presentation was  a budget driven by subsidies and handouts with the Guyana Sugar Corporation (GuySuCo) and Guyana Power and Light, Inc. (GPL) continuing as major beneficiaries even though the Government is resisting a review of their operations. The accounting firm says it  seems irresponsible for GuySuCo to be provided further budgetary support until it complies with the law relating to the presentation of annual accounts and reports.

Ram and McRae also reviewed the controversial decisions by the Court in  the “Budget Cuts Case”.

“We believe that the court fell into error and therefore welcome the decision by the Speaker to appeal the decision of the one-man constitutional court. The National Assembly now proceeds to have the Estimates examined by the Committee of Supply which the court stripped of any real purpose and function, prompting one seasoned commentator to describe the process as “high farce””, the budget review said.

It added that the National Assembly has been stymied in its work by the Executive and the President who “appears to treat the opposition as an obstacle rather than a partner in progress”.

The review said if there is no progress on settling the impasse over the Anti-Money Laundering and Countering the Financing of Terrorism amendments, all the projects by the Minister of Finance could be placed in jeopardy. “We therefore join in appealing to everyone to put Guyana first”, the review said.

“Ram & McRae predicts that the Government will have a difficult time to persuade the parliamentary opposition to support certain budgetary allocations for projects and initiatives that appear to have received inadequate planning; or to allow the spending on NCN from which so much of the country is shut out; or to finance some of the government’s pet projects.

“There is a belief that the PPP/C is unwilling to function without a clear majority which would allow it to have its unhindered way in the Assembly. Cynics might even suggest that the 2014 Budget was designed to invite a rejection of the Budget and justify returning to the polls and forestalling long delayed and much feared local government elections”, Ram and McRae asserted.

 

http://www.stabroeknews.com/20...pointment-ram-mcrae/

Mitwah
Originally Posted by Demerara_Guy:
Alliance for Change (AFC) Member of Parliament and Vice Chairman Moses Nagamootoo says the legal avenue which Government has signaled it might pursue with respect to the non approvals made by the combined Opposition over the 2014 Budget, will not solve their concerns. According to Nagamootoo the Government always has a legal avenue. “We can’t prevent them from going to court if they feel that way. We understood the interpretation that was given by the Chief Justice in what is called the Budget Cut Case; there is always an avenue for the Government to go that way rather than seeking a political solution.”

 

Resorting to the courts will not solve Budget issue – Nagamootoo

April 24, 2014 | By | Filed Under News

Court decisions always take precedence over political arrangements.

Teach dat Boy DG, teach dat Boy.

Nehru
Originally Posted by Conscience:

The well learned Chief Justice interpretation of the constitution stands, its above any internal standing orders in the Parliament, the Constitution is Supreme.

Well controlled PPP pocket Judge. Look carefully you will see the chains running down his trousers from his PPP collar stamped "PPP property"! The constitution is an agreement with the People and the way they want to be governed not the way t he PPP interprets they be governed. In a democracy, the legislature is not a rubber stamp and Finance Ministers are not owners of the budget. They are creators of the budget according to an administrative plan and their creation is  to be presented for consultation, discussion and compromise in the Assembly so a fair one can be on the president's desk

FM
Originally Posted by Conscience:

The Constitution is the Supreme law of the Co-operative Republic of Guyana, its above any internal standing orders in the parliament.

The Constitution is the supreme law only if the People agree. Does Tunisia to Libya mean anything to your? You cannot make them slaves to a law that oppresses them. The PPP wants dictatorial power but we did that and did not like it. We do not like them either. Call the elections.

FM
Originally Posted by Conscience:

The well learned Chief Justice interpretation of the constitution stands, its above any internal standing orders in the Parliament, the Constitution is Supreme.

It is not the job of the chief justice to interpret the Constitution. The Constitution is not open to interpretation either. The Constitution is perfectly clear so that even the dumbest Guyanese understands it.

Mr.T

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