Themed "Confronting the Challenges: Staying on Course for a prosperous Guyana", the 2003 annual estimate of national revenue and expenditure, reflects a 15.9 per cent increase over that of the previous year's $64.9 billion, and aims to consolidate and expand the country's hard won gains, fortified in the knowledge that whatever is being done is right for the citizens of the country.

And while no increases have been announced at this time, some 13,500 persons have been exempted from filing income tax returns, as a result of the increase in the income tax threshold from $216,000 to $240,000 per annum, an immaculately dressed, Minister of Finance, Mr. Saisenarine Kowlessar said.

Other budgetary measures include the payment of a 10 per cent tax on all domestic telephone calls, regardless of whether the calls originate from a landline, cellular phone or fax machine, effective April 1, next.

Minister Kowlessar also announced an increase in withholding tax from 15 per cent to 20 per cent, on interest bearing deposits, loans secured by bonds, and other interest income currently being assessed at 15 percent, as well as a similar increase on payments other than interest to non-residents.

The effective date of these measures is also from April 1, 2003.

The sitting took place at the Ocean View International Hotel Convention Centre, Liliendaal, East Coast Demerara, which took on an improvised National Assembly look for the sitting, due to renovations still being effected at Parliament Buildings.

But the almost two hours 15 minutes presentation by the Finance Minister was marred by a forced 35 minutes adjournment, taken by Speaker of the National Assembly, Mr. Ralph Ramkarran because of noise disruption by Opposition People's National Congress Reform Members of Parliament (MPs) and supporters.

Prior to the start of the session, Opposition MPs who boycotted the sitting, had lined the entrance leading off the Rupert Craig Highway and to the centre bearing placards, some of which read `2003 Budget, citizens beware of the vampire' and `We feeling the prices in the crisis' in an orderly demonstration.

Later, joined by some supporters, they ventured into the compound and took up their position outside the doorway of the centre, and as Minister Kowlessar began his presentation, chants of "Kill the Budget" and loud thumping were heard.

The noise made it difficult for those inside to hear the minister's presentation.

It was at this stage that Speaker Ramkarran interrupted the Finance Minister, adjourned the proceedings and retreated to his room.

When the session resumed some 35 minutes later, the Speaker, in addition to condemning the behaviour of the PNC/R members of Parliament and their supporters, also chided the Police for dereliction of duty.

Kowlessar said the Budget is crafted against the background of the challenges existing in the global and domestic theatres and seeks growth within a stable macroeconomic environment.

Among the priorities are job creation through growth; greater access to potable water, housing and other social services; reform of the Judiciary; more accountable Government and an intensified crime fight.

The minister posited that the seriousness with which the Government intends to pursue the execution and implementation of its plans, policies and programmes, will ensure further progress is made this year.

The Budget addresses 14 broad-based areas - Crime Fighting and Security; Education; Health; Housing; Water and Sanitation; Local Government; Job Creation; Agriculture; Transport and Communication; Telecommunications; Rural Electrification; Urban Rehabilitation; Poultry Reduction and Tax Reform Initiative.

Crime Fighting and Security
In this area, the Finance Minister declared that "Government will not rest until the scourge of crime is removed from our society". To this end, an allocation of $7.2B has been made, and the Government is working with a number of bilateral donors who have expressed an interest in providing various forms of assistance.

Approaches have been made to the Inter-American Development (IDB) for a loan of US$10M to be used to reform the Guyana Police Force, among other activities, Kowlessar said.

Efforts will also be made to establish a National Commission on Law and Order.

Education
This year, the Government plans to commence the implementation of the new $7.3 billion Basic Education Access and Management Systems (BEAMS) programme, which will concentrate on curriculum development and technology improvement, teacher training, institutional support, improving the managerial capacity of Education Officers, and infrastructural improvement to several primary, secondary and multilateral schools in the country.

Under Phase I, the focus will be on Bygeval Multilateral, Bladen Hall Multilateral, North Ruimveldt Multilateral, Lodge Secondary, Charlestown Secondary, Tutorial High, Bartica Secondary, Parika/Salem Secondary, Wales Secondary, Aurora Secondary, and Aishalton Secondary Schools.

A further $500M will be spent under the Secondary School Reform Programme (SSRP) to improve the delivery of education, improve school quality, and rehabilitate Port Kaituma Community High, Abrams Zuil Secondary, Bartica Secondary, Beterverwagting Community High, Rosignol Secondary, Kwakwani Community High, and Parmakatoi Community High Schools.

And, in addition to $325M for the rehabilitation of nursery, primary and secondary schools countrywide, including Dora Nursery, Winfer Garden Primary, North Georgetown Secondary and St Stanislaus High Schools.

Kowlessar said that under SIMAP III, the following schools are programmed for construction this year: Hampton Court, One Mile, Watooka, Santa Rosa, and Arakaka Nursery Schools and La Harmonie Primary School.

Further, $350M will be spent on other educational facilities, including the rehabilitation of Industrial Arts Centres, teachers' quarters, and dormitories at President's College; extension of the New Amsterdam Library; and completion of the Corriverton Technical Institute.

A sum of $479 million has also been allocated for formal, informal and on-the-job training, and resources have been budgeted for the continuation of the Youth Entrepreneurial Skills Training Programme, which graduates about 200 youths per year in diverse skills areas such as refrigeration, plumbing, carpentry, electrical installation and welding.

In addition, the European-funded Guyana Training Agency will continue to offer demand-driven training courses for personnel in the productive and service sectors, the Finance Minister announced.

Health
In this sector, a $1.2 billion nutrition programme to promote breast-feeding among lactating mothers of babies between 0-6 months; provide micro-nutrients for young children and pregnant mothers; provide training for primary health care workers; introduce a food coupon scheme for lactating mothers from poor families; and target the reduction of anaemia, is on the card.

An awareness programme aimed at creating nutritional behavioural changes will be developed and promoted.

The Ministry of Health will execute a $600M HIV/AIDS, Tuberculosis and Health Information Systems Project, to assist in strengthening the prevention, control and management of sexually transmitted infections and HIV/AIDS; improve systems for preventing and controlling tuberculosis; and enhance information flow, storage and retrieval.

Kowlessar said $370M will also be spent to construct an in-patient ward and to purchase medical equipment for the Georgetown Public Hospital Corporation. The re-construction of the New Amsterdam Public Hospital will commence, he said, noting that financing has already been secured from the Japanese Government.

A number of health facilities will be repaired under the SIMAP III and the Basic Needs Trust Fund (BNTF) V Programmes.

In addition, $145 million will be spent on rehabilitation works and the purchase of medical equipment and instruments for hospitals, health centres or health posts in areas such as West Demerara, Bartica, Pomeroon, Timehri, Bamboo Creek, and Morashee.

Housing
The 2003 Budget has made provision for the country's housing programme to benefit from a $1.8 billion commitiment from European Union (EU) for a Low Income Settlement Programme.

The programme complements the existing $5.8 billion, IDB-funded Low Income Housing Programme, will provide an additional 4,000 house lots and regularise 1,500 housing units in squatter settlements throughout the country.

Additionally, along with the local housing programme, both of these programmes will upgrade squatter settlements and develop new housing schemes in areas such as Eccles, Vigilance, Cane Grove, Parfait/Harmony, West Watooka, and Culvert City.

Water & Sanitation
Under this sector, $881M has been allocated to complete the construction of the La Bonne Intention (LBI) Inter-connected Water System; the Eccles Inter-connected Water System; the Bartica water network; and rehabilitate distribution systems at Bath Settlement, Nos. 52-58 Villages, and Eccles to Friendship, among other areas.

The civil works component of Phase II of the $4.7 billion Guyana Water Inc project will commence and $229 million has been programmed to upgrade the distribution network in East and West Ruimveldt, Lamaha Gardens and Bel Air.

Works will also be executed on the water and sewage systems in locations such as Sophia, Meadow Bank, Albouystown, and North Ruimveldt.

And, regarding solid waste disposal and management, the Government will commit $195M to improve the Mandela Avenue Dump Site. Negotiations are under way with the IDB for a loan of $4 billion to construct a new disposal site at Eccles, the minister said.

Meanwhile, arrangements have been concluded with the European Union to refurbish the Linden Water System at a cost of $170 million, while $315M will be spent to rehabilitate coastal and hinterland 'stand alone' water systems nationwide, including those at Adventure, Lima/Sparta, Cullen to Zorg-en-Vlgt, Parika, Timehri, Kwakwani, Barker Scheme, Rosignol, Crabwood Creek, Ankerville and Mara.

Local Government
The country's 65 Neighbourhood Democratic Councils (NDCs) will benefit from a $258M allocation which has been set aside to undertake small capital works, Minister Kowlessar announced.

He said further assistance will be forthcoming from Canada, through a five-year, $590M Municipal Governance and Management Programme, which seeks to strengthen local governance and management in the six towns, while fostering equity, security, inclusion, collaboration and sustainable development in Guyana.

Agriculture
The Government will, under an Italian Line of Credit, commence procurement of over $900M worth of heavy earth moving equipment to accelerate the drainage and irrigation (D&I) programme.

And, under the $1 Billion, IDB-financed Agricultural Sector Support Project, "we will conduct design and feasibility studies of existing and new D&I areas, re-organise the land management and administration systems, and undertake aerial, mapping, geodetic and cadastral surveys", the minister said.

The Poor Rural Support Project also provides resources for the rehabilitation of D&I infrastructure in the project's catchment area as well as the upgrade of support services and facilities.

Other D&I works that are programmed for this year will include installation of two diesel pumps at Mibicuri and Dawa; construction of sluices at Belfield, Westbury and Leguan; rehabilitation of a sluice at Golden Fleece and canals at Manarabisi; and the rehabilitation of drains, canals and structures in areas such as Pomeroon, Lima, Dartmouth, Reliance, Wakenaam, Leguan, Herstelling, Plaisance, Buxton, Mahaica, Mahaicony, Bellamy, Whim/Lancaster and Linden.

A total of $533M has been earmarked in the area of sea defence, for the reconstruction and rehabilitation of the most vulnerable stretches of the shoreline, including Profitt/Foulis, Tuschen, De Kinderen, Hague, Johanna Cecilia, Buxton, Annandale, Bushy Park, Gangaram, Blenheim and Nos. 76-83 Villages.

Kowlessar said that in 2003, too, the Government plans to complete negotiations with the CDB for a loan of $582M to re-construct 300 metres of sea defence at Profitt/Foulis.

The undertaking of a comprehensive programme of shorezone management, as part of the long-term plan to protect our sea defence infrastructure, is also on the cards.

Transport and Communication
The Finance Minister said $1.3B has been allocated in the budget for the re-surfacing of the stretch of main road between Mahaica and Rosignol of which the estimated cost of the project is $4.4B.

However, the bulk of the financing is expected from the IDB.

The Government plans to commission a feasibility study on an alternative access road from Georgetown to Timehri and will commence design work for the rehabilitation of the Corentyne Highway, from New Amsterdam to Moleson Creek.

And, with financial assistance from the CDB, it will start the construction of a 4-lane highway from the Demerara Harbour Bridge leading into the city.

"In addition, we will resurface the Demerara Harbour Bridge, the Houston Bypass Road and parts of Mandela Avenue, and will widen and rehabilitate the West Demerara Road, between the Demerara Harbour Bridge and the Best Hospital", the minister said.

The project also includes the installation of traffic control devices, signage, improved drainage, road lighting, dedicated cycle lanes adjacent to the sidewalk, a study on road maintenance, and a road safety and weight control programme.

A sum of $470M will be used to repair and rehabilitate a number of community roads throughout the country. In particular, work will be executed on roads in areas such as Matthew's Ridge, Port Kaituma, Anna Regina, Dartmouth, Leonora, Goed Intent, Goed Fortuin, Bare Root, Haslington, De Hoop, Ithaca, Rosignol, Moleson Creek, Agatash, Black Bush Polder, and Bartica/Issano/Mahdia.

Kowlessar said funding has been provided under SIMAP III to rehabilitate the East Canje Road while a part of the resources under the BNTF programme will be used to repair roads to be identified during countrywide community consultations.

In addition, a $4.2B major Bridges Rehabilitation Programme this year will see 59 bridges between Timehri and Rosignol being reconstructed. This project is expected to last 2 years and will see the complete reconstruction and re-alignment of the Mahaica and Mahaicony River Bridges.

The Finance Minister said that outside of this programme, over $100 million is earmarked to conduct minor rehabilitation works on bridges at locations such as Moruca, Karasabai, Riverstown, Zeelandia, Kuru Kururu, and Hopetown.

The construction of the much-touted Berbice River Bridge (BRB) remains a top priority of the Government, he said, adding "we will continue to search for an appropriate financing arrangement that would see the early realisation of this project."

Under the Air Transport Reform Project, the Finance Minister said, $798M has been budgeted to commence the resurfacing of the runway at the Cheddi Jagan International Airport, the re-construction of the in-coming terminal, the refurbishment of other facilities, the rehabilitation of the sewage system, and the installation of aviation equipment.

Another $62M will be spent on improving coastal and hinterland airstrips.

In terms of the waterways, a further $225M has been programmed to dredge main rivers, repair dredges, install buoys and beacons to improve river safety and navigation, and repair motor vessels Bonasika, Torani and Kimbia.

Telecommunications
Minister Kowlessar posited that in today's interdependent and globalised world, it is important that we access modern systems of communication and interconnectivity.

It is in recognition of this, he said, that the Government has taken a number of actions to ensure that Guyana and Guyanese do benefit from the telecommunications revolution.

And with assistance from the IDB, it has begun the process leading to the liberalisation of the telecommunications sector in the country, which is crucial to advancing the emerging information technology sector, targeted as a new growth area.

Rural Electrification
The Finance Minister noted that the availability of a large supply of cheap and reliable power that is generated, transmitted and distributed in an efficient and environmentally-friendly manner, is critical to expanding production, improving productivity, catalysing growth, and reducing poverty.

But he said that, although Guyana is blessed with an abundance of rivers and waterfalls, it has relied heavily on the burning of imported fossil fuels to provide the bulk of its energy needs, noting that the import of fuel and lubricants has averaged US$126 million or 25 percent of export earnings over the last three years.

However, this year, the Government will review the country's energy policy to emphasise conservation and the development of alternative sources of power, including hydro, solar and bagasse, over the medium to long term.

It will too, continue with its programme to bring electricity to all households, consistent with its stated goal of improving the quality of life of all Guyanese.

In this regard, it has secured a loan of US$27M from the Inter-American Development Bank to finance a project of US$34.4M to connect 40,000 new, mostly poor customers, in unserved areas, to the national grid.

The pace of implementation of this project should accelerate, once agreement is reached on the future of the beleaguered power company, Guyana Power and Light Inc. (GPL), Minister Kowlessar added.

Urban Rehabilitation
This year will see the continuation of a $4.8B, IDB-financed programme of urban rehabilitation and development of towns and municipalities, which has been ongoing for sometime.

Also, $785M has been allocated to rehabilitate Hadfield and Cactus Streets in Georgetown; Smithfield and Market Stelling Roads in New Amsterdam; Middle and First Streets in Rose Hall; Jackson and Crown Streets in Corriverton; Greenheart Street in Linden, and School Street in Anna Regina.

The money will be used too to repair Bourda, Kitty, Bush Lot and MacKenzie Markets, and several market stalls in the New Amsterdam Market; the New Amsterdam, Linden and Corriverton Town Halls and the Georgetown Abbatoir.

In addition, under SIMAP III, construction work will begin on the Parika Vendors' Mall, Leguan Stelling, Parashara, Kildonan and Hopetown Community Centres, and the Nappi Women's Centre.

Poverty Reduction
The Government has developed a range of programmes that specifically target depressed and distressed communities, on the one hand, and the poor and vulnerable members of the society, on the other.

The Government has also successfully concluded negotiations for SIMAP III and BNTF V programmes, which together, will result in the disbursement of some $5.7B over the next 5 years for community-based projects in areas such as roads, health, education, drainage and irrigation, environmental enhancement and waste management.

Kowlessar said other programmes include the Poor Rural Support Project, which is geared towards rehabilitating drainage and irrigation infrastructure, upgrading public support facilities; and providing agricultural extension and micro credit services to farmers in Regions 2 and 3; the locally funded Poverty Programme, costing $200M; the Linden Economic Advancement Project (LEAP), of which $200M has been budgeted to fund a micro credit scheme, provide vocational training, and create business incubators at Linden, among other activities; the Amerindian Development Fund of $50M for agricultural development, land demarcation, and the purchase of equipment, among others; the Youth Choice Initiative Programme of $35M for small community projects, and training of youths in technical and vocational skills; a textbook programme, budgeted at $310M, in the core subject areas - Mathematics, English, Social Studies, and Integrated Science - for primary and secondary schools' children; and a school feeding programme, costing $100M, that is geared towards improving the attendance and performance of vulnerable students at the nursery and primary levels.

Tax Reform Initiative
In order to fund more social and development programmes, the Government is introducing a number of tax reform initiatives aimed at broadening the tax base and reducing leakage, the minister said.

To this end, preparations for the introduction of a Value Added Tax will Commence, he announced.

In his opening remarks, Kowlessar recalled that when he presented the 2002 Budget, he had used the occasion to recall the tragic events that occurred in the United States of America, on September 11, 2001 and the likely impact they would have had on the Guyanese economy.

And that, even in face of the uncertainties, he had expressed confidence in the Government's policies and had counted on the known resilience of the people to keep Guyana on the move forward.

But, according to him, no one could have predicted the unsavoury events that unfolded in the country in 2002 referring to the increase in criminal activities since February last year that have claimed the lives of many persons, including 23 law enforcement officers, resulted in injuries to many others, and traumatised the citizenry.

"This development exacerbated the already difficult political situation. The physical and psychological damage that these events have inflicted on the psyche of the peace-loving people of this country would be felt long after normalcy has been restored" he added and appealed to all those who cherish democracy, and the freedoms that flow from it, to lend an unequivocal voice against attempts to create instability, to make the country ungovernable, and to divide our people.

And, notwithstanding the many difficulties encountered at the local and international levels, efforts were redoubled to deliver increased social and economic benefits to the population, he said.

Growth, he said, continued to be positive; sugar production was the highest in 26 years; the exchange rate remained stable and international reserves exceeded the target; the physical and human infrastructure was expanded; more money was spent on health, education, pure water, and housing; and workers' incomes were increased.

Shrewd management of the economy ensured that all of this was accomplished despite the diversion of resources to fight crime, he said.

On this note, the Finance Minister said, all should ponder that if so much can be accomplished under such extreme circumstances, how much more could be achieved if the Government did not have to engage constantly in costly and avoidable distractions.

"Should we not see this as a clarion call for us to put our collective shoulders to the proverbial wheel in the fight against poverty and underdevelopment? I believe that we owe it to this and future generations to redirect and, in the words of our National Pledge, `dedicate our energies towards the happiness and prosperity of Guyana'," he remarked.