2019 Budget Estimates: A closer look
Yesterday was International Anti-Corruption Day. It marks
15 years since the United Nations Convention Against Corruption (UNCAC) was adopted as well as 25 years since Transparency International came into being. UNCAC is the largest international anti-corruption treaty. To date, a total of 186 countries are signatories to the Convention. To commemorate this day, UN Secretary-General António Guterres had the following to say:
Corruption robs societies of schools, hospitals and other vital services, drives away foreign investment and strips nations of their natural resources. It undermines the rule of law and abets crimes such as the illicit trafficking of people, drugs and arms.
Tax evasion, money laundering and other illicit flows divert much-needed resources for sustainable development. The World Economic Forum estimates that the cost of corruption is at least $2.6 trillion - or 5 per cent of global gross domestic product. And according to the World Bank, businesses and individuals pay more than $1 trillion in bribes each year. Corruption begets more corruption and fosters a corrosive culture of impunity. Millions of people around the world have gone to the ballots this year with corruption as one of their top priorities. On International AntiCorruption Day, let us take a stand for integrity.
Last week, we highlighted the performance of the economy in 2018 and the key budget proposals for 2019, as contained in the Minister’s budget speech. We now have the benefit of sight of the actual budget documents which are in three volumes. Volume I is the main document while the other two volumes provide supplementary information. Volume II contains mainly qualitative information on the various programmes and activities such as objectives, strategies, indicators of achievement, and expected outcomes and impacts. It is an integral part of programme budgeting also known as results-based budgeting. Volume III provides specific information on each capital expenditure project such as the estimated cost, expenditure to date, foreign and local financing, and proposed expenditure for the budget year.
The proposed budget for 2019 for both current and capital expenditure is $300.7 billion, an increase of $30.6 billion, or 11.3 percent over the revised 2018 budget. Anticipated revenue collections (current and capital) amount to $270.0 billion, giving an overall budget deficit of $30.7 billion, as shown at Table I.
As can be noted, the deficits are in relation to capital expenditure for which in several instances the evidence over the years suggests inadequate planning; poor selection of contractors and consultants; ineffective monitoring; and a lack of proper accountability. Projects that readily come to mind include: the Skeldon Estate Factory; the Amaila Falls Hydro Project; the Fibre Optic Cable Project; One-Laptop Per Family; Specialty Hospital; East Bank and East Coast Demerara Road Rehabilitation; and the