It was yesterday presented under the theme: `Confronting the Challenges: Staying on Course for a Prosperous Guyana' by Minister of Finance, Mr. Saisnarine Kowlessar.

The goal of the 2003 budget is to consolidate and expand Guyana's hard won gains. It has been crafted in the context of the prevailing global and domestic challenges and aims at continued growth within a stable macroeconomic environment.

Among the priorities are job creation through growth, promotion and attraction of investment, and increased support for the private sector; greater access to potable water, housing and other social services; reform of the Judiciary; more accountable Government; and an intensified crime fight.

The seriousness with which we intend to pursue the execution and implementation of our plans, policies and programmes will ensure that we make further progress this year. In spite of the many challenges in 2002 such as local political instability and the threat of war internationally which resulted in a decline in world growth, the Gross Domestic Product (GDP) grew by 1.1 per cent.

The Income Tax Threshold increased from $216,000 to $240,000 per annum, thus benefiting all workers and ensuring that another 13,500 will not pay income tax.

It is estimated that the GDP will grow by 1.2 per cent in 2003.

The 2003 Budget addresses every sector and has something for everyone.

EDUCATION:
Government will begin the implementation of a $7.3 billion Basic Education Access and Management Systems (BEAMS) programme. This programme will concentrate on curricula development and technology improvement, teacher training and institutional support, among other things. Schools that will benefit in Phase I of the projects are Bygeval Multilateral, Bladen Hall Multilateral, North Ruimveldt Multilateral, Lodge Secondary, Charlestown Secondary, Tutorial Secondary, Bartica Secondary, Parika/Salem Secondary, Wales Secondary, Aurora Secondary and Aishalton Secondary.

A further $500 million will be spent under the 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 Paramakatoi Community High Schools. $325 million will be spent to rehabilitate nursery, primary and secondary schools countrywide.

Over $350 million will be spent to rehabilitate other educational facilities including the Industrial Arts Centres, teachers' quarters and dormitories at President's College. Additionally under the SIMAP III Hampton Court, One Mile Watooka, Santa Rosa and Arakaka Nursery Schools and La Harmonie Primary Schools will be constructed.

Expenditures of $479 million will be spent on formal, informal and on-the job training. Allocations have been made for the Youth Entrepreneurial Skills Training (YEST) programme from which 200 youths graduate annually.

HEALTH
The Government will begin the implementation of a $1.2 billion nutrition programme which will 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 the poorest families among lactating mothers.

A $600 million HIV/AIDS, tuberculosis and Health Information Systems Project will be executed. $370 million will be spent to construct an in-patient ward and to purchase medical equipment for the Georgetown Public Hospital Corporation.

A new state of the art hospital will be constructed in New Amsterdam under financing secured from the Japanese Government. $145 million will be spent on rehabilitation works and the purchase of medical equipment and instruments for hospitals, health centres and health posts in rural areas countrywide.

HOUSING:
The housing programme will benefit from a $1.8 billion commitment from the European Union for a Low Income Settlement Programme. This programme, which complements the existing 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.

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/Harmonie, West Watooka, and Culvert City.

WATER & SANITATION
$881 million has been allocated to complete construction of the 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 start this year and $229 million has been programmed to upgrade the distribution network in East and West Ruimveldt, Lamaha Gardens and Bel Air. Also, works will be executed on the water and sewage systems in locations such as Sophia, Meadow Bank, Albouystown, and North Ruimveldt.

With regards to solid waste disposal and management, $195 million has been committed to improve the Mandela Avenue Dump Site. Government is currently negotiating with the IDB for a loan of $4 billion to construct a new disposal site at Eccles.

With the help of donor aid the Linden Water System will be refurbished at a cost of $170 million. $315 million 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
$258 million has been budgeted for project development assistance to help the 65 Neighbourhood Democratic Councils undertake small capital works. Further assistance will be coming from Canada, through a 5-year, $590 million Municipal Governance and Management Programme.

This project seeks to strengthen local governance and management in the six towns while fostering equity, security, inclusion, collaboration and sustainable development in Guyana.

CRIME FIGHTING & SECURITY
$7.2 billion has been allocated to be expended on crime fighting and national security. In addition, Government is working with a number of bilateral donors who have expressed an interest in providing various forms of assistance.

Further, the IDB has been approached for a loan of US$10 million, which will be used to reform the Guyana Police Force, among other activities. The Government will move to establish a National Commission on Law and Order.

JOB CREATION
The policies, programmes and measures of the Government are geared towards promoting growth and creating jobs so as to reduce poverty and increase the standard of living of the people. For 2003, private investment facilitated by Go-Invest is expected to grow to nearly $18 billion in many different areas, including fresh food, energy, wood, tourism, light manufacturing, textiles and garments, handicraft, services and information and communications technology.

Over 2,800 jobs and a number of job opportunities will be created.

Further, Government is committed to the promotion of entrepreneurship. Persons will be able to access credit and technical support from the Institute of Private Enterprise Development (IPED) and the Small Business Development Finance (SBDF).

Also, through a US$1.5 million, three-year UNDP/Private Sector initiative, specialist training will be provided to about 250 entrepreneurs. The European Union has made available $600 million to assist grassroots organisations to identify projects, generate income and create employment. The PSIP (net of transfers) for 2003 is budgeted at $24 billion. This includes the Skeldon Modernisation Project for which $5.4 billon is budgeted.

Through the implementation of the Government's current maintenance programme which is budgeted at $1.5 billion, the Temporary Employment and Maintenance Programme (TEMP) and the construction of the New Amsterdam Public Hospital and the Convention Centre at Turkeyen and several very large projects, many jobs will be available for unskilled, semi-skilled and skilled persons.

AGRICULTURE
Government will commence procurement of over $900 million worth of heavy earth moving equipment to accelerate the Drainage and Irrigation (D&I) programme.

Under the $1 billion, IDB-financed Agricultural Sector Support Project, Government will conduct design and feasibility studies of existing and new D&I areas, reorganise the land management and administration systems, and undertake aerial, mapping, geodetic and cadastral surveys.

The Poor Rural Community 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 programmed for this year include: the installation of 2 diesel pumps at Mibicuri and Dawa; the construction of sluices at Belfield, Westbury and Leguan; the rehabilitation of a sluice at Golden Fleece and canals at Manarabisi; and the rehabilitation of drains, canals and structures in several areas, including Pomeroon, Dartmouth, Reliance, Wakenaam, Herstelling, Buxton, Mahaica, Mahaicony, Whim/Lancaster and Linden.

In the area of Sea Defences $533 million has been earmarked for the reconstruction and rehabilitation of the most vulnerable stretches of our shoreline, including Profitt/Foulis, Tuschen, De Kinderen, Hague, Johanna Cecilia, Buxton, Annandale, Bushy Park, Gangaram, Blenheim and Nos. 76-83 Villages.

Also, during this year, Government will complete negotiations with the CDB for a loan of $582 million to re-construct 300 metres of sea defence at Profitt/Foulis.

TRANSPORT AND COMMUNICATION
$1.3 billion has been allocated for the re-surfacing of the stretch of main road between Mahaica and Rosignol. Government will 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.

Several other major works will be carried out throughout the country.

A further $470 million has been budgeted to repair and rehabilitate a number of community roads throughout the country.

In particular, work will be done on roads in areas such as Matthew's Ridge, Port Kaituma, Anna Regina, Dartmouth, Leonora, Goed Intent, Bare Root, Haslington, Rosignol, Agatash, Black Bush Polder, and Bartica/Issano/Mahdia.

A $4.2 billion Bridges Rehabilitation Programme will begin this year - 59 bridges between Timehri and Rosignol will be reconstructed. Additionally, over $100 million will be spent on minor rehabilitation works on bridges at locations such as Moruca, Karasabai, Riverstown, Zeelandia, Kuru Kuru, and Hopetown.

The construction of the Berbice River Bridge remains a top priority of the Government and the search for an appropriate financing arrangement will be continued.

Under the Air Transport Reform Project, $798 million has been budgeted to commence work to improve the condition and aesthetics of the country's only international airport.

Another $62 million will be spent on improving coastal and hinterland airstrips. $225 million has been programmed to dredge our main rivers, repair dredges, install buoys and beacons to improve river safety and navigation, and repair motor vessels Bonasika, Torani and Kimbia.

TELECOMMUNICATIONS
In today's interdependent and globalised world, it is important that we access modern systems of communication and interconnectivity.

In recognition of this, the Government has taken a number of actions to ensure that Guyana and Guyanese do benefit from the telecommunications revolution. With assistance from the IDB, it has begun the process leading to the liberalisation of the telecommunications sector in the country.

This is crucial to advancing the emerging information technology sector, which has been targeted as a new growth area.

RURAL ELECTRIFICATION
The Government will 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$27 million from the Inter-American Development Bank (IDB) to finance a project of US$34.4 million to connect 40,000 new, mostly poor customers, in unserved areas, to the national grid.

URBAN REHABILITATION
A $4.8 billion, IDB-financed programme of urban rehabilitation and development of towns and municipalities will continue this year.

During this year, $785 million has been budgeted on the following activities: the rehabilitation of 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 rehabilitation of Bourda, Kitty, Bush Lot and MacKenzie Markets, the rehabilitation of New Amsterdam, Linden and Corriverton Town Halls; and the rehabilitation of 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 and the poor and vulnerable members of our society.

Government has successfully concluded negotiations for SIMAP III and BNTF V programmes. Together, these 2 programmes will result in the disbursement of some $5.7 billion over the next 5 years for community-based projects in areas such as roads, health, education, drainage and irrigation, environmental enhancement and waste management.

Other programmes include: The Poor Rural Community 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 $200 million; the Linden Economic Advancement Project (LEAP), of which $200 million 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 $50 million for agricultural development, land demarcation, and the purchase of equipment, the Youth Choice Initiative Programme of $35 million for small community projects, and training of youths in technical and vocational skills; a $310 million textbook programme for primary and secondary schools' children; and a $100 million school feeding programme.

TAX REFORM INITIATIVE
In order to fund more social and developmental programmes, Government is introducing a number of tax reform initiatives aimed at broadening the tax base and reducing revenue leakage.