Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698075325394.pdf (Guyana)
GUYANA SESSIONAL PAPER NO.

2 OF 2008 NINTH PARLIAMENT OF GUYANA UNDER THE CONSTITUTION OF GUYANA FIRST SESSION 2006-2008 MID-YEAR REPORT Honourable Dr. Ashni Kumar Singh, M.P.

Ministry of Finance September 12, 2008 ______________________________________________________________________________ TABLE OF CONTENTS 1.

Introduction 2.

Global Economic Developments 3.

Domestic Economic Developments A.

Real Economic Growth B.


Balance of Payments C. Monetary Developments D. Inflation E. Fiscal Position F. Debt G. Key Sector Highlights 4.
Conclusion 1 3 5 9 11 13 16 20 20 27 Appendices A1 GDP Growth Rates by Sector B1 Balance of Payments Analytical Summary C1 Monetary Survey D1 Consumer Price Index E1 Central Government Financial Operations E2 E3 E4 Central Government Abstract of Non Interest Current Expenditure by 28 29 30 31 32 Financial Operations of the Non-Financial Public Sector 33 34 Public Enterprise Cashflow Chart of Account E5 Central Government Abstract of Revenue by Head E6 Central Government Summary of Capital Expenditure by Sector and Type of Financing External Debt Stock Summary F1 G1 Expenditure of Key Sectors 38 40 41 35 37 1.
Introduction 1.1 This 2008 mid-year report provides an update on the performance of the economy as at the end of June this year, along with a revised economic outlook for the remainder of the year.

It also briefly reviews certain key issues facing the national development agenda and which impact on the macroeconomic projections contained in Budget 2008.
1.2 On 22nd February this year, Budget 2008 was presented in the National Assembly under the theme Staying the Course: Advancing the Transformation Agenda.

This theme reflected our Government’s unswerving commitment to the objective of completing the transformation to a modern and prosperous Guyana even in the face of challenging external and domestic circumstances.
1.3 The agenda for achieving this transformation is based on the preservation of macroeconomic stability, strengthening of the regulatory and institutional environment, continued expansion of the economic and physical infrastructure of the country, and progressive reduction in poverty and improvement in quality of life.
It emphasises sustained investment in the social sector with the aim of improving quality and expanding access to basic social services, and special interventions designed to benefit the most vulnerable in our society.
1.4 Foremost among the challenges recognised on the external front at the time of Budget 2008 was the spectre of high and rising world market prices for fuel and food commodities, and an outlook that suggested that this phenomenon was expected to remain a part of the global environment for the foreseeable future.

This challenge materialised as anticipated during the first half of 2008 with fuel and food prices reaching new record highs.
Concerns that had been identified in relation to the turbulence being observed in the major financial markets also materialised, with the downturn in the US housing market and accompanying turmoil in the mortgage market resulting in a number of financial institutions around the world coming under stress and necessitating intervention by the authorities to restore some measure of stability.
1.5 The external factors, particularly those in relation to fuel and food prices, have the potential to exert considerable pressure on the domestic economic and social agenda and to undermine the considerable gains already made in improving the overall standard of living enjoyed by the people of 1 Guyana.
For this reason, our Government has implemented a number of interventions to mitigate the effects of these developments, with the result that the impact of adverse external developments on our people has been very effectively contained, while macroeconomic stability has also been preserved.

1.6 Budget 2008 was also presented at a time of heightened domestic security concerns.
As a result, the Budget highlighted a number of strategies and initiatives, and provided substantial fiscal allocations, all with the intention of strengthening our public safety institutions and enhancing the capacity of our entire law enforcement and justice systems.
Government has been implementing these strategies and initiatives diligently, with the result that visible progress has been recorded in the fight against crime, including very recent successes that vindicate the efforts and reiterate the need for these efforts to be sustained.

1.7 At the same time, Budget 2008 came at a time of great opportunity for our country, an assessment that has emerged even more clearly as the year has progressed.
Developments in the world market for food products resulted in renewed regional recognition of the role that Guyana can play as a leading producer of food in and for the Caribbean, resulting in increased investment in food production having already materialised, and the prospect of more large scale investment currently showing favourable signs.
Upward movement in the world market price for certain non- food commodities such as gold and bauxite have also redounded to our favour, with increased investment and output in the mining sector being realised.

Against the background of these and other developments reported on, the Guyanese economy is currently anticipated to sustain the growth path of the last two years.

2 2.
2 2.

Global Economic Developments 2.1 Global growth is still projected at the 4.1 percent stated in this year’s budget reflecting, as indicated earlier, the materialising of a number of the risks identified at the start of the year.
The financial crisis that was prompted originally by the downturn in the US subprime mortgage sector and that resulted in a tightening of credit availability in the main developed markets, has led to a dampening of business and consumer confidence in the advanced economies as well as some moderation of growth in emerging and developing economies.
2.2 At the same time, the global economy is confronting higher inflation in both emerging and advanced countries, due mainly to the developments alluded to earlier in relation to the world market for fuel and food commodities.

Oil prices continued to rise steadily in the early months of 2008 and reached their highest levels ever in the first half of the year.

By June 2008, the average price had risen 47.1 percent to US$131.52, up from an average of US$89.43 per barrel in December 2007.
These increases were driven primarily by supply concerns in the context of limited spare capacity, inelastic demand for crude oil, the depreciation of the US dollar, and some speculation as evidenced in the supply and demand for oil futures.

While there was some reversal subsequent to the end of the half year, with prices returning to below US$115 per barrel in August, it is too early to conclude that this reversal signals a persistent trend.
2.3 In the case of food prices, continued low inventory levels, supply interruptions occasioned by increasingly unpredictable climatic episodes, growing global demand heightened by the increased emphasis on biofuel production, along with capacity constraints faced by producers, continue to keep prices high, and food price escalation continues to significantly affect both advanced and emerging economies.

Price increases were led in the markets for cereals, especially rice, maize or corn, and barley.
Wheat prices also rose rapidly in the first quarter of the year, but subsequently moderated and commenced some reversal to end the half year below the levels that obtained at the end of 2007.

Similar signs of moderation and modest reversal were also observed in food commodity prices other than wheat after the end of the half year, but as is the case with fuel prices, more time is required to interpret these latest developments reliably.
3 2.4 In the Caribbean, growth is currently projected at 4 percent for 2008, despite the increasing challenges posed by the external environment and notwithstanding rising inflationary pressure in all of the regional economies on account of imported factors.
Throughout the first half of the year, the debate intensified on the potential impact on the Region of the Economic Partnership Agreement that was initialled at the end of last year by the Caribbean Regional Negotiating Machinery on behalf of CARIFORUM with the EU.

While Guyana’s concerns had long been registered, the debate was characterised by a marked increase in the reservations being expressed by stakeholders in several CARICOM Member States and by some of the Region’s most prominent regionalists.
Guyana has announced its intention to host public consultations on this matter.

4 3.

Domestic Economic Developments A.

Real Economic Growth 3.1 Real output was projected to grow by 4.8 percent in 2008 at the time of the Budget.

Underlying this expansion was anticipated strong performances from the traditional sectors, with the sugar, rice, mining and quarrying sectors projected to lead growth in the economy.
In addition, a number of other sectors, including new and emerging industries and some traditional service sectors, showed the prospect for strong dynamism.

Specifically, transport and communication, financial services, and distribution, were all projected to return strong performances.
These growth projections reflected increased investment and enhanced productive capacity in several of these sectors, sustained export prices in some sectors, and increased domestic demand including as a result of preparations for and the hosting of CARIFESTA X.

3.2 In the first half of the year, the economy achieved real growth of 3.8 percent.

This compares with growth of 5.8 percent in the first half of 2007.
Based on the outturns for the first six months, and updated information on the outlook for the remainder of the year, the economy is now projected to grow by 4.9 percent in 2008, slightly more moderate than the 5.4 percent realised last year, but a marginal upward revision from the originally projected 4.8 percent for this year.

3.3 The sugar sector achieved a first crop production of 103,280 tonnes, as against 100,952 tonnes last year, therefore returning growth of 2.3 percent in the first half of 2008.
The sector’s performance was influenced by weather-induced delays in harvesting, worker turnout levels that were below expectation, and unanticipated episodes of industrial stoppages.

On the other hand, the use of recently acquired mechanised cane harvesters is expected to significantly improve harvesting efficiency in the second crop.

In addition, work has progressed on the Skeldon factory, which is expected to be commissioned before the end of the year.
A second crop output of 186,720 tonnes would be required if the budgeted production of 290,000 tonnes for the year were to be achieved.

This would require management of the industrial relations situation to optimise harvesting activity by minimising interruptions and maximising worker turnout, along with effective management of the factories to optimise grinding operations.
Recent developments in and pronouncements from the industry suggest that a more conservative projected second crop output of 175,720 tonnes and a 5 full year total of 279,000 tonnes might be more appropriate.

This mid-year report therefore revises projected sugar production downwards accordingly, and the sugar sector is now expected to grow by 4.7 percent as against the budgeted 8.8 percent.
3.4 The first crop production of the rice sector amounted to 172,497 tonnes and represented 2.1 percent growth over last year’s first crop of 168,902 tonnes, reflecting some measure of recovery by the sector from challenges faced in recent years along with the early results of the industry’s production response to favourable price developments.
Based on current information available on cultivation, the second crop is expected to yield 178,503 tonnes which would represent 38.1 per cent growth over the previous year’s 129,223 tonnes, as a result of increased acreage put under cultivation and higher yields anticipated as a result of new varieties being introduced.

This would bring the total production to 351,000 tonnes or a 17.7 percent increase over the previous year’s production, an upward revision from the budgeted 7.6 percent growth.
3.5 Livestock production was projected to grow by 2.5 percent in 2008.

In the first six months of the year, this sector recorded significant growth of 9.6 percent over the comparative period last year, with increased production recorded in the beef, pork, and egg subsectors, including as a result of ongoing Government programmes to distribute high quality breeding stock.

The sector is now projected to grow by 7.5 percent in the full year.
3.6 Production in the other crops sector expanded by 9.5 percent in the first six months of the year, reflecting increased export and domestic demand for the products of this sector as well as early returns to the national campaign to promote increased food production.

This campaign included the nationwide distribution of seeds and other planting material along with improved extension services.
The sector is expected to maintain the momentum of the first half of the year and grow by 8 percent at the end of the year, up from an original projection of 2.5 percent.

3.7 Output of the fisheries sector in the first half of this year approximated last year’s production levels, mainly due to contraction in the active fishing fleet as a result of increased fuel prices, reduced fishing stock associated with declining productivity in certain fishing grounds, and the continued threat of piracy.
As a result, projected growth in this sector for the current year is revised downwards from the budgeted 3 percent to negative 2 percent.

6 3.8 The forestry sector was targeted to record growth of 3 percent, recovering from the 11.1 percent contraction in output in 2007.

Instead, the first half of 2008 saw a 23 percent reduction in output relative to the comparative period last year.
This arises from increased enforcement activities by the Guyana Forestry Commission which resulted in a number of operators being found to be delinquent in their required submissions to the Commission, and an associated decline in output for the period.

The majority of operators have since complied with the regulatory requirements by the end of the half year, but several are yet to return to active operations.
Even with some expected recovery in production during the peak period from August to November, it is not anticipated that this can compensate for the production shortfall so far, and the sector is accordingly projected to decline by 14 percent relative to the growth of 3 percent that was budgeted.

3.9 Following a strong growth performance of 22.7 percent in 2007, the mining and quarrying sector was projected to grow a further 5.8 percent in 2008.
In the first half of the year, the sector grew by 15.2 percent on the strength of robust performances in both the bauxite and gold subsectors, and the sector is now anticipated to grow overall by 13.4 percent at the end of the year.
3.10 Bauxite output expanded by 22.8 percent, with production of 1,164,735 tonnes as against the 948,608 tonnes recorded in the corresponding period last year, underlying which were increased production of calcined, chemical grade and metallurgical grade bauxite at both the Linden and Berbice river operations.
The continued strong performance of the subsector is reflective of the industry’s increased productive capacity as a result of the significant private investments in the sector along with favourable market conditions.

Bauxite output is now projected to grow by 22.4, revised upwards from the budgeted growth of 17.1 percent.

3.11 The gold subsector recorded growth of 12 percent, with raw gold declarations totalling 120,510 ounces as against the 107,641 ounces declared in the first half of last year.
This reflected continued favourable developments in the world market.

As a result, gold output is projected to increase by 7.2 percent by the end of the year, instead of the projected tapering to negative 2.7 percent.
On the other hand, diamond declaration maintained its steady decline, partly as a result of migration of capacity and effort into the gold subsector, as a result of which total declarations 7 amounted to 82,468 metric carats compared with 170,226 metric carats declared last year, a decline of 51.6 percent with limited expectations of a turnaround.

3.12 Manufacturing output was projected to grow by 3 percent.
Instead, the sector recorded a contraction in output of 3 percent reflecting lower levels of production of certain beverage, food, and pharmaceutical products.

While some of this development is attributable to temporal factors, and is expected to be reversed in the second half of the year, the sector’s growth projection has been revised downwards to negative 2 percent.
3.13 On the other hand, the distribution sector has continued to return strong performances, with growth of 11 percent achieved in the first half of 2008, consistent with the marked increases realised in both imported consumer goods as well as domestic production of agricultural items.

The resultant effect is a revised projection of 7 percent growth for the sector as against an original projection of 5 percent.
3.14 The transport and communication sector was targeted to grow by 8 percent in 2008 with the thrust coming from both the transportation and telecommunications subsectors, but with a greater comparative contribution from the transportation subsector as the telecommunications subsector was expected to record some tapering of the rapid growth it recorded in 2007.
Overall, the sector is estimated to have grown at 4.5 percent in the first half of the year, and now has a revised growth projection of 7 percent for the year.

3.15 The target of 4 percent for this year for the engineering and construction sector was based on an expectation of renewed emphasis on construction of home residential units and commercial properties, while large infrastructure projects such as the Berbice River Bridge and other major civil works projects advance to completion.
The sector recorded growth of 4.6 percent at the half year, and the whole year revised projection is now set at 6.4 percent.

3.16 The financial services sector grew by 8.5 percent in the first half of the year, reflecting competition in the sector, and increased activity in the expanding branch network and across the range of services.
This growth reflects continued expansion in credit to the private sector, recorded primarily in the mining, agriculture, rice milling, and real estate subsectors during the first half of the 8 year.

This trend is expected to continue, thus enabling the sector to end the year with growth of 7 percent, up from the projected 5.5 percent 3.17 Rental of dwellings grew by 3 percent in the first half of the year, resulting in a upward revision in the growth projection for the year from 2 to 3.6 percent.
While other services grew by 8.4 percent in the half year, projected growth for the full year is maintained at 4 percent.

B.

Balance of Payments 3.18 The overall balance of payments reflected an overall surplus of US$47.6 million from a deficit of US$12.3 million for the corresponding period in 2007.

The overall surplus contributed to the accumulation of foreign assets by the Bank of Guyana.
3.19 The merchandise trade deficit at end June 2008 amounted to US$261.3 million, 41.1 percent above the 2007 level for the same period.

This reflected a sharp rise in the value of imports by US$145 million, which exceeded the US$68.9 million increase in export earnings recorded in the first half of 2008.

3.20 Total export earnings amounted to US$381 million, an increase of 22.1 percent over the US$312.2 million achieved in the corresponding period of 2007.
This is attributed to both higher volumes exported and favourable world market prices for a number of the key export commodities.

3.21 Sugar export earnings amounted to US$57.8 million, an increase of 3 percent over the same period last year.
This was attributed to higher prices obtained in some markets along with the favourable effects of the Euro strengthening against the US dollar, causing the effective average price for the first half of this year to be some 7.3 percent higher at US$662.2 per tonne relative to US$616.9 during the corresponding period.

On the other hand, the volume of exported sugar decreased by 4 percent to 87,297 tonnes.
3.22 Rice export earnings amounted to US$50.5 million in the first six months of this year, 30.9 percent more than the level for the corresponding period last year.

Although average export prices 9 for rice surged by 111.4 percent to US$558.9 per tonne, the volume of rice exports declined by 38.1 percent to 90,337 tonnes from the 145,920 tonnes exported in the corresponding period in 2007.

3.23 Receipts from bauxite exports amounted to US$68 million, 57.5 percent above the value at the end of June 2007.
This was due to a significant increase in export volume to 1,214,891 tonnes, representing a 35.7 percent increase over the volume exported in the first half of 2007.

In addition, the average unit price experienced a 16 percent increase to US$56 per tonne.

Receipts from gold exports also increased significantly, rising by 46.4 percent to US$100.8 million compared to US$68.8 in 2007.
This was the result of increased export volumes, consistent with the increased production recorded as activities by both small and medium sized miners increased to take advantage of favourable world prices.

Export volume rose to 120,264 ounces from 106,276 ounces recorded at the end of June 2007.

The average price per ounce rose to US$838, a 29.4 percent increase from the average of US$647.7 obtained in the first six months of 2007.
3.24 The value of timber exports was US$23.9 million, 8.1 percent below the level for the corresponding period in 2007, on account of a decline in exports of both plywood and other timber exports and reflecting the reduced level of production.

Other exports (non-traditional exports including re-exports) totalled US$80 million, 0.8 percent more than the value for the corresponding period in 2007.
3.25 Net payment for services amounted to US$48 million up from US$31.1 million for the corresponding period in 2007.

This expansion was attributed mainly to increased payments for non- factor services, which totalled US$41.8 million up from US$25.6 million, primarily as a result of higher merchandise and freight insurance.

Net payment for factor services expanded by 11.9 percent to US$6.1 million.

3.26 The value of merchandise imports grew by 29.2 percent or US$145 million to US$642.3 million.
The increase mainly reflected higher food prices and the record prices for fuel and its resulting impact on other commodities.

All three categories of imported goods, namely consumption, intermediate and capital goods, recorded increases during the review period.

Imports of consumption goods amounted to US$152.9 million, an increase of 24.5 percent, and reflected significant increases in the value of imported motor vehicles, food for final consumption, and other 10 non-durables.
Imports of intermediate goods recorded a 41.2 percent increase to US$354.2, primarily attributed to an increase in the value of imported fuel, lubricants, and food for intermediate use.

Imports of capital goods increased by 10.6 percent to US$129.9 million, which primarily reflected higher imports of agricultural and mining equipment.

3.27 Net current transfers expanded by 10.7 percent to US$145.6 million, reflecting higher inflows in the form of remittances.
Taken as a whole, these developments resulted in the current account deficit widening significantly by 93.1 percent or US$78.9 million to US$163.6 million.

3.28 The capital account recorded a higher surplus of US$184.6 million, 177 percent more than the US$66.6 million achieved for the corresponding period in 2007.

This was due to higher net private investment which amounted to US$126.8 million from US$76.4 million for the same period in 2007.
Net short term capital outflows fell to US$5.6 million from the US$47.2 million for the corresponding period for 2007, which reflected disposal by the commercial banks of foreign assets during the review period.

3.29 Although the current account deficit deteriorated significantly, the improvement in the surplus on the capital account led to an overall surplus of US$47.6 million from a deficit of US$12.3 million at the end of June 2007.
In line with these developments, gross international reserves of the Bank of Guyana increased to US$380.9 million at the end of June 2008, which is equivalent to 2.7 months of imports of goods and services.

C. Monetary Developments 3.30 Key monetary aggregates continued to grow during the first half of 2008, reflecting increased economic activity.

The stock of broad money grew by 6.6 percent to $174.2 billion, underpinned by increases in both net foreign assets and private sector credit.
3.31 The public, private, and non-bank financial institution sectors held higher deposits with the commercial banks, with residents’ deposits rising by 11.6 percent to $184.3 billion in the first half of 2008.

Private sector deposits with the commercial banks increased by 9.7 percent to $143.6 billion, 11 with business enterprises accounting for an increase of 11.7 percent to $24.4 billion and individual customers accounting for an increase of 9.2 percent to $119.2 billion.
3.32 Under the review period, net domestic credit by the banking system contracted by 20.5 percent to $33 billion.

This outturn was a result of the significant decline in public sector credit which offset the increased credit to the private sector.

3.33 Private sector credit in the form of loans and advances grew by 5.7 percent to $77.5 billion, compared with an 8.3 percent increase at end June 2007.
This expansion was largely driven by growth in the mining, agriculture, real estate mortgage, and rice milling sectors, which increased by 90.6 percent, 17.9 percent, 13.3 percent and 10 percent respectively.

Loans to the distribution, personal, and other services sectors also increased by 6.3, 3.6, and 1.3 percent, respectively.
At the end of June 2008, the commercial banks’ major exposure to the private sector were 24 percent to real estate mortgages, 23 percent to personal, 15 percent to distribution, 11 percent to manufacturing, 10 percent to other services, 9 percent to other, 5 percent to agriculture, 2 percent to rice milling, and 2 percent to the mining and quarrying sector.
3.34 The public sector continued to be a net depositor of funds with the banking system at the end of June 2008, with net deposits increasing by 49.9 percent to $33.9 billion.

The Central Government moved from being a net creditor of $3.5 billion at the end of 2007 to a net depositor of $1.7 billion at the end of June 2008, while public enterprises recorded a 5.1 percent increase in net deposits to $10.4 billion.
The other category of the public sector which includes local government and the National Insurance Scheme recorded a 34.2 percent increase in net deposits.

3.35 The non-bank financial institutions recorded a 15.3 percent increase in their net deposits to $10.8 billion at the end of June, arising primarily from a 15.6 percent increase in deposits of the private non-bank financial institutions.
3.36 During the review period, the net foreign assets of the banking system grew by 17.6 percent to US$480.2 million.

The net foreign assets of the commercial banks grew by 2.9 percent to US$194.5.

Higher net foreign assets of the commercial banks resulted mainly from increased holdings of foreign securities abroad.

The gross foreign liabilities fell by US$1.9 million at the end of 12 June 2008.
Net foreign assets of the Bank of Guyana increased by 30.3 percent to US$285.8 from the US$219.4 million recorded at the end of last year.

Foreign assets increased by US$68.4 million during the review period while the foreign liabilities increased by US$2 million from the US$93.2 million registered at the end of 2007.

3.37 Commercial banks interest rates fell during the first half of the year on account of higher levels of liquidity.
The prime lending rate fell to 14.54 percent from 14.71 percent at the end of 2007, while the small savings rate also registered a corresponding decline to 3.08 percent from 3.15 percent.

The commercial banks’ interest rate spreads between the savings rate and prime lending rate remained high at 11.46 percent at the end of June 2008.
The spread between the 91-day treasury bill rate and the small savings rate expanded from 75 basis points at the end of 2007 to 86 basis points at the end of the first half of 2008.

3.38 Total liquid assets of the commercial banks amounted to $72.5 billion or 11.5 percent above the level at the end of 2007.

The banks’ excess liquidity amounted to $30.6 billion or 73.1 percent more than the required amount.
The high level of excess liquid assets continued to reflect the banks’ preference for short term assets comprising mainly of Government of Guyana treasury bills.

Treasury bills accounted for 57.5 percent of total liquid assets while deposits with banks abroad declined by 15.9 percent.

Total reserves deposited with the Bank were $27.8 billion, 21.8 percent above the level at the end of 2007.
The required statutory reserves of the banks were $23.7 billion, 10.1 percent higher than the level at the end of 2007, reflecting the increase in savings deposit liabilities over the review period.

Reserves in excess of the minimum requirement totalled $4.1 billion at the end of the first half of 2008.
D. Inflation 3.39 As indicated earlier, the inflationary pressures experienced by the world economy last year as a result of rising prices in the market for certain primary commodities, particularly fuel and food, continued throughout the first half of this year.

These pressures manifested themselves in both developed and emerging economies, and small vulnerable economies such as those in the Caribbean and Guyana’s continued to confront the reality of significant increases in import prices.
13 3.40 In Guyana’s case, the consumer price index increased by 5.8 percent in the first half of the year.

This was driven primarily by increases in food prices, most notably upward movements in the categories of cereals and cereal products, sugar, honey and related products, and pulses and pulse products, while other categories of food items recorded more moderate increases in prices.
Transport and communication, and fuel and power also contributed significantly to the overall movement in prices, reflecting increases in fuel prices and electricity tariffs.
As the half year progressed, the rate of increase in prices slowed markedly reflecting parallel developments in the world market for relevant commodities, domestic market supply seasonalities, Government intervention in some markets to cushion the impact of price increases on domestic consumers, and the emergent effects of Government policy such as the emphasis on increased food production.
In light of these developments, the inflation projection for the year is now revised from 6.8 percent at the time of Budget 2008 to 8.1 percent.

3.41 Recognising the impact that global price increases could have on domestic consumers if left unchecked, Government implemented a number of initiatives to cushion the effect that imported price escalation would have on the domestic economy and particularly on the most vulnerable sections of society.
Reduced excise tax rates continued to be applied on gasoline and diesel in keeping with Government’s policy to lower the rates when world market prices are rising and vice versa.

In addition, the policy of charging no taxation on kerosene and cooking gas was maintained, and the list of basic items that are zero-rated for the purposes of the value-added tax was also extended during the first half of 2008.

Prominent among the items from which the value-added tax was removed were wheat and wheaten flour.
3.42 Electricity tariffs were increased for the first time since 2005.

However, the tariff increases were structured in a progressive manner to ensure that small household consumers who comprise the majority of the electricity customer base would bear the least burden, while customers classified as Government agencies would absorb a higher tariff increase.
In addition, during the first half of the year, Government concluded an agreement with GPL to provide a total of US$31.4 million over a two year period to finance the purchase of new generating capacity, conversion of existing capacity to heavy fuel oil, and upgrading transmission lines.
Of this amount, $4.3 billion is provided in the budget for disbursement in 2008, and the project is intended to increase generating capacity, contain production costs, and improve quality and reliability in the interest of all electricity consumers.

14 Further, shortly after the end of the half year, Government also sought and obtained Parliamentary approval for supplementary appropriations of $3.7 billion to provide financial support to GPL to assist in meeting the rising fuel costs.
Other utility charges in the public sector, such as water rates, bridge tolls, and ferry tolls remained broadly unchanged throughout the half year, with a few minor exceptions, and Government bore the overwhelming majority of the increased cost of providing the associated services.

3.43 During the first half of 2008, Government also implemented an initiative to ensure regular and affordable supply of basic food items such as rice, sugar, flour and bread.
This was done through special initiatives to purchase and resell rice, sugar and flour in small packets at prices that ensured that the most vulnerable could access these commodities affordably and that also introduced an element of competition to help contain the profit margins that were being charged on these commodities.

In addition, cash transfers were provided to the local flour milling company to cushion the cost of flour purchased by bakers and biscuit manufacturers.
3.44 Further, Government implemented a comprehensive campaign to promote increased food production in Guyana, targeting both commercial and subsistence farmers.

Under this “Grow More” campaign, chemicals and fertilisers, along with some 600,000 packages of vegetable seeds, were earmarked for distribution across all ten Regions of Guyana.
3.45 In addition to the efforts described above to restrict the pass through of world market price increases on domestic consumers and to promote increased domestic food production, Government also took steps in the first half of 2008 to ensure that upward adjustments were effected to disposable incomes, particularly for those with fixed incomes and the most vulnerable.
3.46 To this end, firstly, a 63 percent increase in old age pensions from $3,675 to $6,000 monthly and an 82 percent increase in public assistance to vulnerable individuals from $2,470 to $4,500 monthly were implemented with effect from 1st January.

Under this arrangement, some 50,000 beneficiaries will receive increased direct income support.
Secondly, the income tax threshold was increased by 25 percent from $28,000 to $35,000 monthly with effect from 1st January 2008, benefiting all taxpayers with higher take-home pay, and removing some 36,000 persons from the requirement to pay income tax.
Thirdly, a 5 percent across-the-board increase in wages and salaries 15 was paid with effect form 1st January to public servants, teachers, and members of the disciplined services, following the 9 percent increase that was paid to all of these categories of Government employees with effect from 1st January last year.

Fourthly, Government also approved the payment of a temporary cost of living adjustment to Government employees earning a basic salary below a specified threshold.
Under this initiative, a temporary adjustment of $4,000 per month, free of income tax, will be paid during the months of May to December 2008 to public servants, teachers, and members of the disciplined services whose basic monthly salary is $50,000 or less.

This adjustment was intended to be temporary in nature and will be reviewed at the end of 2008.
3.47 Taken together, these measures constitute a comprehensive response by our Government to the external shock being experienced by small economies like Guyana’s in relation to imported price pressures.
As indicated, this response is based on the four-pronged strategy of containing the pass through of world market prices to the domestic consumer, ensuring the continued availability of basic goods and social services at affordable prices, increasing domestic food production through short immediate interventions and a longer term strategy, and increasing disposable incomes particularly for the most vulnerable in a sustainable manner.
E. Fiscal Position 3.48 The overall deficit after grants of the Central Government was projected to improve to $11.4 billion compared with the actual deficit of $16 billion in 2007.

At the end of the first half of the year, an overall surplus of $6 billion was realised compared with a surplus of $3.4 billion realised during the corresponding period last year.

3.49 Total revenue (net of rice levy) in 2008 was projected at $81.6 billion as against the $80.4 billion realised in 2007.
At the end of June 2008, revenue collections totalled $42.5 billion compared with $40.5 billion collected last year.

The outturn in the first half of 2008 was on account of strong performances in certain categories of both tax and non-tax revenue which offset revenue foregone in other categories.
3.50 Customs and trade taxes (not including value-added and excise taxes) were programmed to decline to $6.7 billion, from the $8.2 billion collected in 2007, given that last year’s outturn included 16 residual collections of $1.4 billion from the abolished consumption taxes.

Consistent with this projection, customs and trade tax collections for the period January to June 2008 amounted to $3.1 billion as compared to $4.3 billion in 2007.
Underlying these collections in 2008, import duties totalled $2.7 billion, a 6.6 percent increase over the $2.6 billion collected in 2007, reflecting the higher level of imports realised this year.

3.51 Value-added and excise taxes were programmed to collected $41.4 billion in 2008 up from the $36.7 billion collected in 2007, reflecting the fact that this year would have represented the first full year of collections for the value-added tax.
Actual collections in the first half of the year amounted to $17.8 billion compared with the $17.1 billion collected last year.

These collections comprised a marginal increase in value-added tax collections to $11 billion from $10.2 billion, and excise tax collections declining to $6.7 billion from $7 billion.
These changes reflect the fact that, as indicated, the first half of this year represented a full collection period of six months for the value- added tax, as against last year when the tax on domestic supplies would only have been received by Government from the second month of the year on the commencement of return filing.

Underlying these collections is also a $2 billion decline in excise tax on petroleum products, from $3.9 billion to $1.9 billion reflecting the reduction in the tax rate.
This was partially offset by stronger collections on other imports, with motor vehicle imports in particular recording a strong increase.

3.52 Internal revenue collections amounted to $19 billion in the first half of 2008 compared with $17.4 billion collected last year.
The main contributors to the increase recorded were improved private sector corporation tax performance, which accounted for an increase from $6.5 to $7.7 billion, along with improved performance in the category of income tax on self-employed, which increased from $708 to $932 million.

Personal income taxes (PAYE) registered $6.6 billion, $22 million less than the collections for 2007.
This reflected the impact of the increase in the income tax threshold, offset partially by the early payment of salary increases in the public and private sectors this year.

3.53 Non-tax revenue collection increased from $1.6 billion in the first half of 2007 to $2.6 billion in the first half of 2008.

This was on account of the receipt of dividends from equity holdings in 2008 which were not received in the first half of 2007, and higher transfers of Bank of Guyana profits.
17 3.54 Based on these developments and updated projections for the remainder of the year, total current revenue is now projected at $81.1 billion as compared with $81.6 billion projected at the time of Budget 2008.

3.55 Total Central Government expenditure (net of rice levy) was budgeted to increase by 7.3 percent to $115.4 billion.
In the first half of 2008, expenditure totalling $46.7 billion was incurred as against $41.4 billion incurred last year, largely on account of higher recurrent spending in specific areas which offset somewhat lower capital expenditure.

3.56 Non-interest current expenditure rose by 26.7 percent to $31 billion, reflecting increased spending on personal emoluments, goods and services, and transfer payments.
The increase in personal emoluments reflects the impact of the 2007 salary increase which was implemented in the second half of last year, the 2008 salary increase which was implemented in the first half of this year, and the effect of the temporary cost of living adjustment paid to eligible public servants, teachers, and members of the disciplined services.

3.57 A total of $24.3 billion was budgeted to purchase other goods and services, an increase of 19.5 percent over the actual amount spent in 2007.
Actual expenditure at the half year in this category increased by 54.7 percent to $11.1 billion as against $7.2 billion last year.

This increase was due mainly to one-off expenditure incurred to meet the cost of the national house-to-house registration exercise by the Guyana Elections Commission along with heightened activity by the Disciplined Services to enhance the domestic security situation.
It was also partly attributable to increased electricity charges paid by Government as a result of increased tariffs and advance payment of accounts.

3.58 Recurrent transfer payments were budgeted at $19.2 billion in 2008, representing a 19 percent increase from the actual expenditure in 2007.

In the first half of the year, these payments rose by 21.1 percent to $8.8 billion up from $7.3 billion in 2007.
This was primarily due to increased pension and public assistance payments consistent with the increases granted, and higher contributions to the cost of community power in Linden and Kwakwani.

18 3.59 Interest payments were projected to increase by 5.3 percent to $6.5 billion.

At the half year, a reduction of 7.8 percent was realised with payments totalling $3.2 billion.
External interest for the period January to June amounted to $1.6 billion, a reduction of 2.5 percent as compared to the same period in 2007.

This is reflective of the benefits received in 2007 from the Multilateral Debt Relief Initiative by the World Bank, International Monetary Fund and Inter-American Development Bank.

Domestic interest was projected to decrease by 6.9 percent to $2.9 billion from $3.1 billion.
In the first half of 2008, domestic interest charges decreased to $1.6 billion from $1.8 billion paid in same period of 2007, largely reflecting lower interest payments on all categories of treasury bills.

3.60 Amounts totalling $40.8 billion were budgeted for Central Government capital expenditure for the full year.
This total reflected a reduction of 4.8 percent from the 2007 level of $42.9 billion, given that several major projects were either complete or significantly advanced towards completion, including the Community Services Enhancement Project, the Low Income Settlement Project, and the Public Management Modernisation Project.

Capital expenditure for the first half of 2008 amounted to $12.5 billion representing a 6.9 percent reduction as compared the same period for 2007.
3.61 Total expenditure is now projected at $119.3 billion as against the $115.4 billion which was programmed at the time of the budget.

This includes revised non-interest current expenditure of $72.9 billion, up from the budgeted level of $68 billion, the principal factor underlying the increase being the $3.7 billion anticipated to be transferred to GPL to support the operations of that company.

Capital expenditure is now projected at $39.9 billion compared with the $40.9 billion budgeted.
3.62 Budget 2008 anticipated the receipt of grants totalling $22.3 billion as against the $11.1 billion received in 2007.

Grants for the first half of 2008 totalled $10.2 billion as against $4.3 billion received in the same period last year, primarily as a result of an increase in non-project grants this year.

The revised projection for grants in 2008 now amounts to $22.4 billion.
3.63 The overall performance of the public enterprises for the first half of 2008 deteriorated to a deficit of $3.8 billion as compared to a deficit of $1.8 billion for the same period in 2007.

This is mainly on account of the Guyana Sugar Corporation Inc. (GUYSUCO) which registered an overall 19 deficit of $4.7 billion in the first half of the year compared with a deficit of $2.5 billion in 2007.
While GUYSUCO’s receipts from sales increased by $1.2 billion, employment costs, freight, and materials costs including fuel and fertiliser increased by a total of $2.6 billion.

In addition, even with Government’s assistance that included accelerated payment of electricity charges, GPL’s overall balance still deteriorated from a surplus of $110.3 million to a deficit of $91 million attributed to the rising costs of fuel, and this trend is expected to continue for the remainder of the year.
3.64 The 2008 overall deficit of the non–financial public sector was projected to improve to $14.1 billion as against the actual deficit of $16.4 billion in 2007.

Consistent with this projection, at the end of June 2008, the overall balance reflected a surplus of $2.2 billion compared to a surplus of $1.7 billion at the end of June 2007.
However, this position is not expected to be sustained for the remainder of the year, and the overall fiscal balance is now projected at $20.3 billion, reflecting primarily the changing financial position of the public enterprises.

F. Debt 3.65 Over the reporting period, Guyana’s total stock of external debt increased by US$55 million from US$718.8 million at the end of 2007 to US$773.8 million as at the end of June 2008, reflecting increased disbursements from both multilateral and bilateral sources.
G. Key Sector Highlights a.

Education 3.66 Of the budgeted allocation of $19 billion for Education, $8.2 billion was expended in the first half of 2008 as compared to $7.6 billion in 2007.

This increase was due to the accelerated implementation of several programmes, including the new fast track literacy initiative targeting low performing children, out of school youths, and adults.
During the first half of the year, 250 literacy educators were trained to facilitate the implementation of this literacy initiative which is expected to benefit at least 9,000 children and 4,500 adults before the end of the third quarter of the year.

In addition the roll out of the Primary School Information System (PSIS) for the second batch of schools resulted in the procurement of 100 computers in the first half of the year which will be 20 deployed to the regions later this year.
Further, with the support of a number of domestic and international non-governmental organisations, Government has deployed over 500 computers to schools at various levels of the system.

3.67 In keeping with the objective of improving managerial capacity within the education system, the Monitoring and Evaluation, Reporting and Development (MERD) Unit, which has absorbed the Inspectorate Unit, was established at the beginning of this year.
The unit will visit each Region at least twice per year to assess performance and compliance with the education strategy and policies and is expected to improve the delivery of education.

Weaknesses in the management and supervision function will be detected and resolved through policy responses so that effective management and supervision of education resources is assured.
During the first half of the year, the unit visited 20 nursery, 70 primary, and 54 secondary schools in Regions 3, 4, 5, 8, 10, and Georgetown.

3.68 In addition to the funds expended on teacher training during the first half of 2008, $16 million was expended on the Masters Degree Programme which resulted in the upgrading of persons who will be responsible for the management and supervision of the education systems.
This programme currently attracts more than 40 participants from across the education system.

The World Teach Programme budgeted domestically at $13 million for the year has resulted in a complement of 27 highly skilled graduates from prestigious foreign universities being made available to the education sector of Guyana, providing human resources for the sector in the areas of foreign languages and special needs.
3.69 Specific attention to hinterland areas has seen the continuation of Remote Area Incentive (RAI) payments to over 800 teachers located across Regions 1, 7, 8, 9 and riverain 10, while 20 computers were issued to Teacher Learning Resource Centres in Regions 1, 7, 8 and 9.
Further, as part of the hinterland school feeding programme which currently benefits 60 schools in Regions 1, 7, 8 and 9 with a total enrolment of 11,116 pupils, the first half of the year saw over 19 schools being equipped with school kitchens to facilitate the serving of meals to pupils attending those schools.
21 3.70 Government’s continued emphasis on ensuring adequate access to and physical upgrading of educational facilities manifested itself during the first half of the year in a number of infrastructural projects in the education sector being advanced.

These included schools at Bartica and Mahaica currently under construction which, when completed, will add a total of 2,000 new secondary school places consistent with the goal of universal coverage.
In addition, rehabilitation works at Light Town and Crabwood Creek Primary Schools have significantly progressed.

Construction of Rewa Primary School also advanced along with the extension of the Kwakwani Secondary and Amelia’s Ward Nursery Schools.

b.

Health 3.71 In the Health sector, $12.1 billion was budgeted to be spent in 2008, of which $4.9 billion was expended at the half year.
Consequently, during the first half of the year, Government continued to make significant strides in advancing the development of Guyana’s public healthcare facilities, improving technological capacity, expanding the range of healthcare services, continuing the efforts to combat communicable diseases such as HIV, malaria, tuberculosis and dengue, and addressing chronic health problems and diseases in mental health.
In addition the National Health Strategy 2008-2012 has been revised and is expected to be widely available later this year.

3.72 In the first half, the Georgetown Public Hospital Corporation (GPHC) conducted 5 hip replacement surgeries, 9 cardiac surgeries, 78 cancer treatment operations, and offered oncology services for the first time with the recruitment of a medical oncologist.
Plans were also made for the first ever kidney transplant surgery to be conducted early in the second half of the year, providing additional evidence of the new and expanded services being offered in the sector.

3.73 Of the $2.8 billion budgeted for operations and maintenance, $1.6 billion was expended which includes the upgrading of the electrical and water system at the main referral hospital.
Expanded services became available at several hospitals and health centres such as Nabacalis, Black Bush Polder, Canal No1, Kumaka, due to the deployment of 13 Cuban family health practitioners.
The comprehensive diagnostic centres at Diamond and Leonora are now fully functional and serve the needs of Regions 3 and 4, while civil works are practically completed and the installation of 22 equipment is now being undertaken at the new facilities at Suddie, Mahaicony, Lethem, Mabaruma and Port Mourant Ophthalmology Centre.
3.74 In an effort to fill the human resource gap in the health sector, 5 postgraduate surgeons have completed their examinations and have been placed at New Amsterdam, Linden, Bartica and West Demerara Regional Hospital, respectively, while a further 8 students continued the postgraduate training programme in surgery at the Georgetown Public Hospital Corporation.
Some 450 nurses were enrolled for training at the 3 nursing schools, representing the largest number of nurse trainees entering the training programme in recent memory.

In addition, 9 audiology practitioners, 26 pharmacy assistants and 360 general nurses completed training in the 3 nursing training schools while 26 pre-medexes commenced eight weeks of community public health training at the various health centres and have since been sent to the GPHC for medical and surgical lectures and rotation.
Further, 19 medical laboratory technician candidates commenced training in March 2008, and 8 nurse anesthesia candidates commenced training in April 2008.

The latter is a critical programme for the development of the surgical teams in Guyana.

3.75 The sum of $340 million was allocated for the Basic Nutrition Program for the continued distribution of sprinkles along with coupons to children and pregnant mothers.
The sum of $152 million was expended in the first half of the year on 10,200 beneficiaries by integrating the distribution of sprinkles to infants at the national level through some 105 health centres country- wide.

3.76 The drug demand reduction programme has heightened efforts in the fight against substance abuse.
During the first half of the year, a workshop was held on drug education and life skills for 56 students and it is expected that in the latter half of the year, 30 persons will be trained in this area.
The new Mental Health Strategy 2008-2012 is also being aggressively implemented, with the compilation of a new essential list of medicines for mental health, completion of guidelines for depression and anxiety, and training of more than 50 persons in motivational therapy to work with the substance abuse program.

In the area of chronic diseases, new guidelines for diabetes and hypertension were introduced.
The foot care programme has also been extended from 2 to 8 centres and a specialised foot care programme for diabetes has been introduced at the Georgetown Public Hospital Corporation.

23 c. Agriculture 3.77 Diversification of the productive sector is a key component of the transformation process.

Early in the second quarter of this year, a five year Agricultural Export Diversification Programme commenced.
Significant improvements in the agribusiness sector and agriculture health and food safety systems will result from the implementation of this programme over the next five years.

The launching of the Grow More Food campaign, which saw the distribution of seeds and fertilisers to households and farmers, is also expected to result in increased production of fresh fruits and vegetables for export and domestic consumption, an outcome that is already being observed.
3.78 In addition to fresh fruits and vegetables, other sectors such as aquaculture, apiculture and livestock production are benefiting from interventions to boost their expansion and development.

The aquaculture industry benefited from the construction of a semi-intensive tilapia hatchery which was completed and commissioned shortly after the end of the half year, while training of 30 farmers will be conducted later this year at the Mon Repos aquaculture station.
The hatchery is expected to produce 180,000 tilapia fingerlings per year, enough to stock 18 acres of ponds and benefiting 36 small farmers and their households.

The swine breeding programme saw in the first half of this year over 120 boars and sows distributed to over 46 clusters of farmers, each cluster comprising 6 farmers, in Regions 1 to 7 and 10, while another 80 boars and sows will be distributed in the second half of this year.
Yet another area of diversification is expected to be in the area of apiculture specifically the production of organic honey from Africanised honey bees.

Over 200 persons are expected to be trained and Guyana will host the Fifth Caribbean Beekeepers Congress in November this year.
The National Agriculture Research Institute has begun the construction of 10 seedling houses in Regions 1 to 7 and 10 which will serve as pilot facilities to give farmers in the respective Regions higher quality seedlings free of pests and diseases and later in 2008 the rehabilitation of the existing laboratory at NARI will commence.
d. Infrastructure 3.79 In the continuing effort to maintain and enhance our physical infrastructure base in keeping with our transformation agenda, Government in 2008 allocated the sum of $6.2 billion to improve 24 our country’s roads and bridges network, with specific budgetary allocations of $5 and $1.2 billion, respectively.
At the half year, $1.3 billion was spent on roads and $204.6 million on bridges 3.80 The rehabilitation of the New Amsterdam to Moleson Creek Road saw $286.5 million, expended, representing mainly work on Lot 1 (New Amsterdam Stelling to No.

36 Village), while work has also commenced on Lot 2 (No.

37 Village to Moleson Creek).

In addition, the Linden to Lethem road project’s pre-feasibility study has been completed, and it is expected that the feasibility study will be proceeded with shortly.
3.81 Work also continued apace on the Berbice River Bridge, both by the private company constructing the bridge and by Government on the approach roads.

At the half year, 18 spans including the high span were installed out of a total of 39 spans.

Additionally, $317.7 million or 32 percent of the allocations made for the access roads was spent.

The sum of $148.5 million was expended on the rehabilitation of bridges along the Timehri-Rosignol corridor.
The Takutu Bridge linking Guyana and Brazil was also completed at the end of March 2008, opening a gateway of opportunities in trade and development.

3.82 Of the G$160 million allocated, $159.3 million has been disbursed to procure and install 4 fixed platform vehicle weight scales and 5 additional portable scales.

The installation of these scales will facilitate the protection of our bridge infrastructure and also aid the function of load restriction to protect our road network.
3.83 The Government budgeted $2.2 billion to continue construction, rehabilitation and maintenance of the sea defences structures of which, $1.2 billion was disbursed.

Major sea defence works are ongoing at Turkeyen/Ogle, Sea Spray, Toevlugt, Henrietta, Leguan Island, Kartabo, Profit Foulis, Riverview, New Forest, Belladrum, and Craig.

Works completed include Profit Foulis and Gangaram.
The establishment of a shore zone management system for monitoring, planning and management of the coastal zone in Regions 5 and 6 to protect the coastline is also completed.

3.84 Government allocated $3.7 billion for the drainage and irrigation sector and in the first half of 2008 a total of $1.3 billion dollars was expended on reducing flooding and improving irrigation to farmlands.
The National Drainage and Irrigation Authority (NDIA) has been allotted $2.1 billion to 25 improve the drainage and irrigation network across the country.

In the first half of 2008, $670 million has been expended.

Construction and rehabilitation of culverts, kokers and structures are completed at Leguan, Palmyra, Hog Island, Boerasire conservancy, Vryheid and Nooten Zuil, and works are in progress at Beribissiballi, Enmore, Crown Dam and Moleson Creek.
Works done in these areas, along with other identified areas such as Buxton, Parika Backdam, and Garden of Eden are expected to benefit 50,000 acres of farmland used for cane, rice, coconut, cattle and cash crop farming.

Construction and rehabilitation of sluices are completed at Adventure and No.

67 Village, while works are on-going at Kurukururu, Kofi, Strathavon, Maida and Borlam.
These works, along with other identified areas including Cozier, De-William and Soesdyke, are anticipated to benefit 250,000 acres of farmland used for cane, rice, coconut, cattle and cash crop farming.

Embankment, empoldering and revetment works are completed at Ituribisi, Palmyra, Riverstown and Golden Grove, while works are ongoing at the East Demerara Water Conservancy and Kofi.

Drainage pumps are currently being rehabilitated at Anna Regina and Cozier.
These works when completed are expected to bring flood relief to 150,000 acres of cane, rice, coconut, cattle and cash crop farmland.

3.85 In electricity, as indicated earlier, Government signed an agreement with GPL to provide some US$31.4 million over a two year period to finance the acquisition of more efficient power generating capacity and an upgraded transmission and distribution network.

Of the amount of US$21.2 million budgeted this year, at the end of June, US$15 million was provided to GPL.
Under this arrangements, GPL would procure and install a 20.7 MW power plant at Kingston by June 2009 for the Demerara system, along with the construction of foundation works at Kingston and the upgrading of the transmission line linking Kingston to Sophia, rehabilitate and convert the generating capacity at Canefield Power station to use heavy fuel oil instead of diesel and upgrade the transmission link from No.

53 Village to Skeldon.


3.86 In addition, under the Unserved Areas Electrification Programme (UAEP) a sum of G$700 million was budgeted, of which $112 million was spent during the first half of the year.

This included the installation of solar electricity systems at Muritaro, Capoey, Kurukabaru, and Yarakita, bringing the benefits of electricity to residents in these communities.

26 4.
26 4.

Conclusion 4.1 The first half of 2008 witnessed further expansion in real output despite the pressure exerted from the global fuel and food crises and the turbulence being experienced in the financial markets.

This growth is expected to be sustained in the second half as a result of improved performances in a number of the domestic economy’s productive sectors.
These include the rice sector which, driven by strong prices on the world market, has seen increased acreage being brought under cultivation, the non-traditional crops and livestock sectors responding to favourable price developments and to Government initiatives to promote increased food production, and the gold and bauxite mining sectors recording increased private investment and strong output growth.
4.2 While fuel and food prices are expected to remain high on the world market for the remainder of the year, the weeks immediately following the half year provided some evidence of a tapering of the earlier rates of increase and, in some cases, moderate reversal was observed.
These developments mirror the domestic situation, where the measures implemented by Government are being observed to have the desired effect of limiting the extent to which the domestic economy and the domestic population are affected by adverse external price movements.

4.3 Continued execution of Government programmes across all sectors is expected to accelerate in the second half of the year with the main projected outputs and outcomes being realised at the end of the year.
Subject to the risks presented by the unpredictable external environment, the current domestic situation suggests a cautiously optimistic outlook for the remainder of the year.
27 APPENDICES APPENDIX A1 MID-YEAR GDP GROWTH RATES BY SECTOR 2007 ACTUAL 2008 BUDGET 2007 H1 2008 H1 2008 REVISED ITEM SUGAR RICE LIVESTOCK OTHER CROPS FISHING 2.7 -2.9 2.0 4.6 3.2 FORESTRY -11.1 MINING & QUARRYING 22.7 MANUFACTURING DISTRIBUTION TRANSPORTATION & COMMUNICATION ENGINEERING & CONSTRUCTION RENT OF DWELLINGS FINANCIAL OTHER GOVERNMENT TOTAL -20.3 0.0 -2.0 -5.0 -23.0 -14.0 20.5 15.2 13.4 -10.2 -3.0 10.7 11.0 10.0 4.5 6.6 3.5 6.2 5.3 0.0 5.8 4.6 3.0 8.5 8.4 0.0 3.8 -2.0 7.0 7.0 6.4 3.6 7.0 4.0 0.0 4.9 Source: Bureau of Statistics Mid-Year Report 2008 GDP Growth Rates by Sector 28 ITEM A Current Account 1.0 2.0 3.0 Merchandise (Net) 1.1 Exports (f.o.b.)
1.1.1 Bauxite 1.1.2 Sugar 1.1.3 Rice 1.1.4 Gold 1.1.5 Timber 1.1.6 Other 1.1.7 Re - exports 1.2 Imports (c.i.f.)
1.2.1 Fuel & Lubricants 1.2.2 Other Services (Net) 2.1 Factor 2.2 Non Factor (Net) Transfers 3.1 Official 3.2 Private B Capital Account 1.0 2.0 Capital Transfers Medium and Long Term Capital (Net) 2.1 Non - Financial Public Sector Capital (Net) 2.1.1 Disbursements 2.1.2 Amortization 2.1.3 Other 2.2 Private Sector (Net) 3.0 Short Term Capital C D E Errors and Omissions OVERALL BALANCE Financing 1.0 Bank of Guyana net foreign assets 2.0 3.0 Change in Non-Financial Public Sector Arrears Exceptional Financing 3.1 Debt Relief 3.2 Balance of Payments Support 3.3 Debt Forgiveness 3.4 Debt Stock Restructuring APPENDIX B1 MID-YEAR BALANCE OF PAYMENTS ANALYTICAL SUMMARY 2007 ACTUAL 2008 BUDGET 2007 H1 2008 H1 2008 REVISED (205.7) (381.7) 680.9 101.5 150.1 75.3 153.1 55.4 128.9 16.5 (1,062.5) (284.6) (777.9) (110.8) (11.2) (99.6) 286.8 - 286.8 168.7 414.1 (150.4) (260.7) 104.9 (41.4) (324.2) 110.3 (95.0) 35.6 (1.4) 1.4 (37.3) - 38.7 7.5 - 29.2 2.0 (246.3) (388.1) 736.9 130.0 160.1 80.0 150.3 67.6 135.9 13.0 (1,125.0) (335.0) (790.0) (135.6) (30.6) (105.0) 277.4 - 277.4 249.9 79.8 190.0 59.3 59.7 (11.7) 11.2 130.7 (19.9) 0.0 3.6 (3.6) (33.0) - 29.4 - - 30.1 (0.6) (84.7) (185.1) 312.2 43.2 56.1 38.6 68.8 26.0 72.3 7.1 (497.3) (131.3) (366.0) (31.1) (5.5) (25.6) 131.5 - 131.5 66.6 388.7 (274.9) (351.3) 24.1 (18.9) (356.5) 76.4 (47.2) 5.8 (12.3) 12.3 1.7 - 10.6 3.7 - 6.0 0.9 (163.6) (261.3) 381.0 68.0 57.8 50.5 100.8 23.9 75.4 4.6 (642.3) (203.5) (438.7) (48.0) (6.1) (41.8) 145.6 - 145.6 184.6 21.7 168.4 41.6 87.0 (21.9)
 (23.5) 126.8 (5.6) 26.6 47.6 (47.6) (66.4) - 18.8 2.3 - 16.8 (0.3) (382.7) (440.7) 823.3 138.2 160.1 110.0 199.5 47.5 150.0 18.0 (1,264.0) (454.0) (810.0) (132.0) (36.0) (96.0) 190.0 - 190.0 358.2 51.3 286.9 139.2 212.3 (45.7) (27.4) 147.7 20.0 (18.8) (43.3) 43.3 (27.0) - 70.3 35.4 - 35.5 (0.6) - 29 Figures: US $ m Mid-Year Report 2008 Source: Bank of Guyana Balance of Payments Analytical Summary APPENDIX C1 MID-YEAR MONETARY SURVEY 2007 December 2007 H1 1.0 Total Money & Quasi Money 1.1 Money 1.1.1 Currency
 1.1.2 Demand Deposits 1.2 Quasi Money 1.2.1 Time Deposits 1.2.2 Savings Deposits 2.0 Domestic Credit (Net) 2.1 Public Sector (Net) 2.1.1 Central Govt.
(Net) 2.1.2 Public Enterprises (Net) 2.1.3 Other Public Sector (Net) 2.2 Private Sector 2.2.1 Agriculture 2.2.2 Other Manu.

& Process.

2.2.3 Rice Milling 2.2.4 Distribution 2.2.5 Personal 2.2.6 Mining & Quarrying 2.2.7 Other Services 2.2.8 Real Est.

Mortg.
loans 2.2.9 Other 163,399.41 54,240.69 29,800.59 24,440.11 109,158.72 15,582.95 93,575.77 41,430.51 (22,619.89) 3,522.17 (9,922.80) (16,219.26) 73,346.85 2,984.48 9,078.13 1,556.45 10,990.92 17,005.08 822.76 7,523.74 16,402.54 6,982.77 148,635.47 44,591.12 23,714.49 20,876.63 104,044.35 14,890.80 89,153.55 44,811.94 (13,585.82) 7,170.02 (8,584.82) (12,171.03) 66,925.84 3,027.84 8,858.96 1,517.65 9,686.25 14,097.76 958.30 6,725.07 14,682.10 7,371.91 2008 H1 174,210.29 55,302.85 28,916.68 26,386.16 118,907.45 16,872.29 102,035.16 32,955.38 (33,909.63) (1,708.86) (10,433.23) (21,767.54) 77,537.24 3,518.30 8,450.53 1,711.93 11,681.53 17,610.43 1,568.27 7,620.09 18,585.83 6,790.34 2.3 Financial Insts.
(9,296.45) (8,528.08) (10,672.23) 3.0 Foreign Assets (Net) 3.1 Assets 3.2 Liabilities 83,094.41 113,224.46 (30,130.05) 65,430.01 95,636.14 (30,206.13) 97,967.05 128,196.47 (30,229.43) 4.0 Other Items (Net) 38,874.49 38,393.51 43,287.87 Figures: G $ m Source: Bank of Guyana 30 Mid-Year Report 2008 Monetary Survey APPENDIX D1 MID-YEAR CONSUMER PRICE INDEX 2007 DEC 2007 JUNE 2008 JUNE ALL ITEMS 250.0 246.1 264.4 FOOD 256.2 243.2 279.0 CLOTHING 86.6 86.3 85.1 FOOTWEAR AND REPAIRS 75.5 71.1 72.8 HOUSING 277.6 282.5 288.2 FURNITURE 161.6 163.2 161.4 TRANSPORT & COMMUNICATION 304.7 312.6 319.2 MEDICAL & PERSONAL CARE 287.4 281.9 292.4 EDUC., RECR.
AND CULTL.

SERVICE 270.1 269.5 273.4 MISC.
GOODS & SERVICES 209.6 209.3 214.5 Source: Bureau of Statistics 31 Mid-Year Report 2008 Consumer Price Index APPENDIX E1 MID-YEAR CENTRAL GOVERNMENT FINANCIAL OPERATIONS 2007 ACTUAL 2008 BUDGET 2007 H1 2008 H1 2008 REVISED Total Revenue Revenue Tax Income taxes Consumption taxes Trade taxes Other Non-tax Private sector Public enterprise & BOG 80,356.8 81,638.8 80,356.8 77,353.2 29,358.5 38,298.4 7,101.1 2,595.2 3,003.6 2,275.7 727.9 81,638.8 78,204.0 26,957.8 41,415.5 7,067.4 2,763.3 3,434.8 2,440.8 994.0 Total expenditure 107,519.3 115,368.9 Current expenditure Non-interest expenditure Personal emoluments Other goods and services Transfer Payments Transfers to the private sector Transfers to the public sector Interest External Domestic Primary balance Current balance Capital Revenue Capital Expenditure 64,626.8 58,432.7 21,987.9 20,341.4 16,103.4 16,103.4 - 6,194.1 3,088.7 3,105.4 21,924.1 15,730.0 - 42,892.5 74,515.1 67,991.8 24,521.3 24,300.4 19,170.1 19,170.1 - 6,523.3 3,631.2 2,892.1 13,647.0 7,123.7 - 40,853.8 Overall Balance before Grants (27,162.5) (33,730.1) Grants HIPC relief Original Enhanced CMCF MDRI Other Projects Non-projects 11,136.0 3,624.0 - 821.3 513.9 2,288.8 7,512.0 6,343.9 1,168.1 22,324.9 2,943.2 - 591.7 513.9 1,837.6 19,381.7 6,355.0 13,026.7 Overall Balance after Grants (16,026.5) (11,405.2) Financing Net External Borrowing Disbursments of Loans Debt Repayments Rescheduling Guysuco - Escrow A/C Overseas Deposit Net Domestic Borrowing Net Divestment Proceeds 16,026.5 16,587.9 19,964.1
 3,063.3 1,522.5 1,724.0 (3,559.4) (561.5) - 11,405.2 18,709.0 33,169.3 3,121.8 961.5 - (12,300.0) (7,303.8) - 40,451.3 40,451.3 38,806.7 15,418.9 18,683.5 3,082.1 1,622.2 1,644.6 945.6 699.0 41,359.2 27,909.4 24,461.6 9,958.8 7,200.0 7,302.8 7,302.8 - 3,447.8 1,629.9 1,817.9 15,989.6 12,541.8 - 13,449.8 (908.0) 4,338.0 1,923.1 - 526.6 257.0 1,139.5 2,414.9 2,414.9 - 3,430.0 (3,430.0) 5,841.2 4,846.4 1,422.3 762.1 1,655.0 - (9,271.2) - 42,508.3 42,479.3 39,900.3 16,968.4 17,759.2 3,298.2 1,874.5 2,579.0
 1,475.2 1,103.8 46,698.4 34,173.1 30,992.7 11,008.3 11,141.1 8,843.3 8,843.3 - 3,180.4 1,589.9 1,590.5 11,486.6 8,306.2 29.0 12,525.3 (4,190.1) 10,161.6 1,464.2 - 293.9 257.0 913.4 8,697.4 2,289.6 6,407.8 5,971.5 (5,971.5) 5,156.7 11,764.7 1,338.1 479.2 - (5,749.1) (11,128.1) - 81,165.4 81,107.4 77,886.9 28,919.9 38,587.5 7,417.4 2,962.0 3,220.5 2,097.0 1,123.5 119,276.3 79,406.4 72,883.1 24,521.4 24,867.3 23,494.4 19,794.4 3,700.0 6,523.3 3,631.2 2,892.1 8,224.3 1,701.0 58.0 39,869.9 (38,110.9) 22,411.9 2,943.2 - 591.7 513.9 1,837.6 19,468.7 6,323.0 13,145.7 (15,699.0) 15,699.0 18,745.7 35,345.1 3,121.8 961.5 - (14,439.1) (3,046.7) - Figures: G $ m Source: Ministry of Finance 32 Mid-Year Report 2008 Central Government Financial Operations APPENDIX E2 MID-YEAR FINANCIAL OPERATIONS OF THE NON - FINANCIAL PUBLIC SECTOR ITEM 2007 2008 ACTUAL BUDGET 2007 H1 2008 H1 2008 REVISED Non-Financial Public Sector Revenues Central Government Public Enterprises 85,757.8 80,356.8 5,401.0 87,015.4 81,638.8 5,376.6 40,703.5 41,361.3 40,451.3 42,508.3 252.2 -1,147.0 84,599.9 81,165.4 3,434.5 Total Expenditure 113,336.0 123,438.0 43,387.2 49,308.7 127,357.5 Current Expenditure Non-Interest Expenditure Personal Emoluments Other Goods and Services Transfer Payments Transfers to the Private Sector Transfers to the public sector Interest External Domestic 64,626.8 58,432.7 21,987.9 20,341.4 16,103.4 16,103.4 0.0 6,194.1 3,088.7 3,105.4 74,515.1 67,991.8 24,521.3 24,300.4 19,170.1 19,170.1 0.0
Current Balance 21,131.0 12,500.3 12,794.0 7,188.1 5,193.5 Capital Revenue 0.0 0.0 0.0 0.0 0.0 Capital Expenditure Central Government Public Enterprises 48,709.2 42,892.5 5,816.7 48,922.9 40,853.8 8,069.1 15,477.8 15,135.6 13,449.8 12,525.3
 2,028.0 2,610.3 47,951.1 39,869.9 8,082.2 Overall Balance before Grants -27,578.2 -36,422.6 -2,683.8 -7,947.5 -42,757.6 Grants HIPC Relief Other 11,136.0 22,324.9 4,338.0 10,161.6 3,624.0 7,512.0 2,943.2 19,381.7 1,923.1 2,414.9 1,464.2 8,697.4 22,411.9 2,943.2 19,468.7 Overall Balance after Grants -16,442.2 -14,097.7 1,654.2 2,214.1 -20,345.7 Financing Net External Borrowing Net Domestic Borrowing Net Divestment Proceeds 16,442.2 17,610.3 -1,187.2 19.0 14,097.7 15,062.7 -965.0 0.0 -1,654.2 -2,214.1 6,672.0 8,210.7 -8,326.2 -10,424.8 0.0 0.0 20,345.7 22,470.8 -2,125.1 0.0 Figures: G $ m Mid-Year Report 2008 Source: Ministry of Finance Financial Operations of the Non-Financial Public Sector 33 APPPENDIX E3 MID-YEAR PUBLIC ENTERPRISE CASH FLOW ITEM 2007 2008 ACTUAL BUDGET 2007 H1 2008 H1 2008 REVISED Receipts Enterprises NIS Contributions Investment Revenue 90,157.6 80,577.8 9,579.8 8,059.8 1,520.0 100,580.8 90,411.3 10,169.5 8,600.5 1,569.0 38,564.8 34,272.1 4,292.7 3,999.4 293.3 46,072.8 41,414.8 4,658.0 4,332.0 326.0 Total Expenditure 90,573.3 103,273.3 40,340.6 49,801.2 Total non-interest expenditure Non-financial public enterprise Wages and Salaries Goods and Services Local taxes The NIS Taxes to central government Dividends and transfers 84,361.9 74,890.5 20,131.9 54,120.6 638.0 8,310.0 1,161.4 - 94,818.3 84,036.4 21,312.5 62,267.7 456.2 9,309.9 1,317.0 155.0 Primary surplus or deficit (-) 5,795.7 5,762.5 Interest External Internal 394.7 116.4 278.3 385.9 136.5
 249.4 Current surplus or deficit (-) 5,401.0 5,376.6 5,816.7 5,777.3 39.4 8,069.1 7,979.1 90.0 Capital Expenditure Enterprises NIS Less Government transfers Overall surplus or deficit before special transfers (-) Special Transfers Overall surplus or deficit after special transfers 38,130.9 33,587.1 8,783.2 24,652.9 151.0 3,946.8 597.0 - 433.9 181.7 50.1 131.6 252.2 2,028.0 2,001.2 26.8 47,054.4 42,402.6 9,934.0 32,274.7 193.9 4,212.6 439.2 - (981.5) 136.5 38.6 97.9 (1,118.0) 2,610.3 2,604.5 5.8 (415.7)
 (2,692.5) (1,775.8) (3,728.3) (29.0) (415.7) (2,692.5) (1,775.8) (3,757.3) (4,647.7) Financing External Domestic Divestment Proceeds 415.7 1,022.4 (625.7) 19.0 2,692.5 (3,646.3) 6,338.8 - 1,775.8 830.8 945.0 - 3,757.3 3,054.0 703.3 - 4,647.7 3,725.1 922.6 - Figures: G $ m Source: Ministry of Finance 34 Mid-Year Report 2008 Public Enterprise Cashflow 107,429.0 96,860.5 10,568.5 8,996.0 1,572.5 112,018.7 103,549.5 93,011.9 20,784.6 71,771.0 456.3 9,356.9 1,175.7 5.0 3,879.5 387.0 137.0 250.0 3,492.5 8,082.2 7,992.2 90.0 (4,589.7) (58.0) APPENDIX E4 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF NON-INTEREST CURRENT EXPENDITURE BY CHART OF ACCOUNT Acct Cod Chart of Account Total Statutory Expenditure 2007 Actual 2,169,133,000 2008 Budget 2,388,675,000 H1 2007 1,016,418,738 H1 2008 1,084,337,488 2008 Revised 2,388,675,000 601 6011 6012 6013 602 Total Statutory Employment Expenditure Statutory Wages and Salaries Statutory Benefits and Allowances Statutory Pensions and Gratuities Statutory Payment to Dependants Pension Funds Statutory Payments to Dependants Pension Funds Administrative Senior Technical Other Technical and Craft Skilled Clerical and Office Support Semi-Skilled Operatives and Unskilled Contracted Employees Temporary Employees Other Direct Labour Costs Incentives Benefits and Allowances National Insurance Pensions Revision of Wages and Salaries Revision of Wages and Salaries Expenses Specific to the Agency Expenses Specific to the Agency Materials, Equipment and
 Supplies Drugs and Medical Supplies Field Materials and Supplies Office Materials and Supplies Print and Non-Print Materials 6021 Total Appropriation Expenditure 601 Total Employment Costs 611 Total Wages and Salaries 6111 6112 6113 6114 6115 6116 6117 613 Overhead Expenditure 6131 6132 6133 6134 6135 614 6141 620 Total Other Charges 621 6211 622 6221 6222 6223 6224 623 Fuel and Lubricants 6231 624 6241 6242 6243 625 6251 6252 Fuel and Lubricants Rental and Maintenance of Buildings Rental of Buildings
 Maintenance of Buildings Janitorial and Cleaning Supplies Maintenance of Infrastructure Maintenance of Roads Maintenance of Bridges Maintenance of Drainage and Irrigation Works Maintenance of Sea and River Defenses 6253 6254 6255 2,154,858,000 363,287,000 172,439,000 1,619,132,000 2,356,375,000 421,897,000 193,809,000 1,740,669,000 1,016,418,738 162,661,835 78,471,108 775,285,795 1,084,337,488 215,217,763 79,428,598 789,691,127 2,356,375,000 421,897,000 193,809,000 1,740,669,000 14,275,000 32,300,000 - - 108,348,000
1,324,304,221
Maintenance of Other Infrastructure 341,262,000 504,168,000 103,051,095 109,968,671 505,468,000 Figures: G $ Source: Ministry of Finance 35 Mid-Year Report 2008 Central Government Abstract of Non-Interest Current Expenditure by Chart of Account APPENDIX E4 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF NON-INTEREST CURRENT EXPENDITURE BY CHART OF ACCOUNT Utility Charges Telephone Charges Electricity Charges Acct Chart of Account Cod Transport, Travel & postage 626 6261 Local Travel and Subsistence 6262 Overseas Conferences and Official Visits Postage,
 Telex and Cablegrams 6263 Vehicle Spares and Service 6264 6265 Other Transport, Travel and Postage 627 6271 6272 6273 Water Charges 628 6281 6282 6283 6284 Other 629 6291 6292 6293 6294 Other 630 6301 6302 Other Goods and Services Purchases Security Services Equipment Maintenance Cleaning and Extermination Services Other Operational Expenses National and Other Events Dietary Refreshment and Meals Education Subvention and Training Education Subventions and Grants Training (Including Scholarships) Rates and
 Taxes and Subventions to Local Authorities Rates and Taxes Subventions to Local Authorities Subsidies and Contributions to Local & Int Org Subsidies and Contributions to Local Organisations Subsidies and Contributions to International Organisations Refunds of Revenue Refunds of Revenue Pensions Non-Pensionable Employees Pension Increases 6322 633 6331 634 6341 6342 6343 Old Age Pensions and Social Assistance Other Public Debt 635 6351 Other Public Debt Grand Total 631 6311 6312 632 6321 2007 Actual 1,701,708,000 737,734,000 185,438,000 21,500,000 408,311,000 348,725,000 5,298,228,000 370,143,000 4,071,749,000 856,336,000 2,557,667,000 1,199,253,000 486,289,000 159,717,000 712,408,000 2,880,050,000 222,479,000 1,101,949,000 123,260,000 1,432,362,000 1,994,267,000 1,119,242,000 875,025,000 2008 Budget 2,177,287,000 1,040,451,000 183,500,000 44,267,000 473,952,000 435,117,000 5,024,805,000 393,872,000 4,077,370,000 553,563,000 3,164,986,000 1,450,875,000 637,880,000 195,108,000 881,123,000 3,933,835,000 427,458,000 1,371,553,000 186,389,000 1,948,435,000 2,345,353,000 1,169,489,000 1,175,864,000 368,927,000 352,894,000 16,033,000 232,734,000 215,199,000 17,535,000 H1 2007 559,061,838 241,987,705 45,875,060 9,549,724 161,260,595 100,388,754 1,554,848,703 149,802,871 1,319,761,405 85,284,427 1,045,743,024 543,550,609 136,642,314 64,915,996 300,634,105 1,106,811,783 110,735,743 463,814,442 48,599,915 483,661,683 811,487,513 547,754,680 263,732,833 57,101,057 52,119,496
 4,981,561 H1 2008 821,168,757 420,783,193 53,475,579 8,321,562 163,468,957 175,119,466 3,275,371,509 161,757,763 2,914,929,716 198,684,030 1,279,961,496 675,522,878 171,749,508 68,434,221 364,254,889 2,266,919,181 171,654,521 569,007,502 49,730,864 1,476,526,294 902,619,750 595,479,421 307,140,329 14,025,446 6,928,991 7,096,455 2008 Revised 2,335,656,300 1,138,820,300 183,500,000 44,267,000 473,952,000 495,117,000 5,024,835,000 393,882,000 4,077,390,000 553,563,000 3,182,407,000 1,462,076,000 637,880,000
- 772,441,000 22,266,000 22,266,000 5,055,978,000 154,069,000 1,352,909,000 3,549,000,000 - 533,343,970 338,310 338,310 1,493,515,991 50,173,935 510,511,111 932,830,945 - 416,433,370 2,592,188 2,592,188 2,112,741,609 37,426,505 543,262,414 1,532,052,690 - 772,441,000 22,266,000 22,266,000 5,055,978,000 154,069,000 1,352,909,000 3,549,000,000 - 58,432,668,780 67,991,779,000 24,461,360,370 30,992,702,210 72,883,138,000 Figures: G $ Source: Ministry of Finance 36 Mid-Year Report 2008 Central Government Abstract of Non-Interest Current Expenditure by Chart of Account APPENDIX E5 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF REVENUE BY HEAD ITEM 2007 ACTUAL 2008 BUDGET 2007 H1 2008 H1 2008 REVISED TOTAL REVENUE 107,077,905 124,241,289 49,108,620 58,391,649 123,890,663 TOTAL CURRENT RECEIPTS 80,356,912 81,638,806 40,450,844 42,479,309 81,107,454 CURRENT RECEIPTS TAXES I II II IV V CUSTOMS AND TRADE TAXES 8,158,331 6,662,875 4,280,490 3,116,736 7,016,994 VALUE ADDED AND EXCISE TAXES 36,713,179 41,415,451 17,135,912 17,758,339 38,586,713 INTERNAL REVENUE 32,481,858 30,125,680 17,389,886 19,025,151
 32,283,197 STAMP DUTIES 365,064 369,250 183,393 205,024 369,250 OTHER TAX REVENUE 284,116 220,005 136,528 117,933 220,005 FEES, FINES, ETC.
XI FINES, FEES.

ETC.

763,755 662,000 389,951 413,904 662,000 REVENUE FROM PROPERTY AND ENTERPRISE XII INTEREST 31,568 31,200 XIII RENTS, ROYALTIES, ETC.
10,548 12,200 1,285 3,722 15,348 2,479 31,200 12,200 XIV LAND DEVELOPMENT SCHEMES XV DIVIDENDS AND TRANSFERS 1,006,500 1,565,000 699,000 1,345,753 1,350,750 MISCELLANEOUS RECEIPTS ` XVI MISCELLANEOUS RECEIPTS 541,992 575,145 230,676 478,642 575,145 TOTAL CAPITAL RECEIPTS 26,720,994 42,602,483 8,657,776 15,912,340 42,783,209 CAPITAL RECEIPTS XX SALE OF ASSETS, ETC.
XXI MISCELLANEOUS CAPITAL REVENUE 2,802,760 2,351,509 1,396,466 1,199,377 2,409,541 XXII EXTERNAL GRANTS 7,512,020 19,381,674 2,414,890 8,697,355 19,468,668 XXIV EXTERNAL LOANS 16,406,214 20,869,300 4,846,420 6,015,609 20,905,000 Figures: G $ ‘000 Source: Ministry of Finance 37 Mid-Year Report 2008 Central Government Abstract of Revenue by Head APPENDIX E6 MID YEAR CENTRAL GOVERNMENT SUMMARY OF CAPITAL EXPENDITURE BY SECTOR AND TYPE OF FINANCING SECTOR AND SOURCE 2007 2008 ACTUAL BUDGET 2007 H1 2008 H1 1.0 3.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 Agriculture 1.1 Specific 1.2 Non- Specific Fishing 3.1 Specific Non- Specific Power Generation 5.1 Specific 5.2 Non - Specific Manufacturing 6.1 Specific 6.2 Non- Specific Construction 7.1 Specific 7.2 Non- Specific Transport & Communication 8.1 Specific 8.2 Non- Specific Housing 9.1 Specific 9.2 Non- Specific Environmental and Pure Water 10.1 Specific 10.2 Non- Specific Education 11.1 Specific 11.2 Non- Specific Health 12.1 Specific 12.2 Non- Specific Culture/Youth 13.1 Specific 13.2 Non -Specific National Security and Defence 14.1 Specific 14.2 Non -Specific 4,246.257 1,986.231 2,260.026 3,419.914 779.014 2,640.900 0.084 - 0.084 15.000 0.000 15.000 3,024.451 1,097.190 1,927.261 5,121.800 5,086.000 35.800 46.469 - 46.469 8,800.340 5,572.707 3,227.633 4,005.630 1,273.213 2,732.417 1,378.937 822.946 555.991 3,921.334 2,128.194 1,793.140 3,916.351 2,001.488 1,914.863 2,725.146 1,675.325 1,049.821 166.873 - 166.873 141.978 - 141.978 64.425 0.000 64.425 6,270.216
141.978 - - 3.749 3,205.389 3,194.006 11.383 16.470 - 16.470 1,926.254 1,162.555 763.699 735.004 452.340 282.664 260.044 193.534 66.510 927.543 825.305 102.238 1,262.185 631.264 630.921 789.390 643.558 145.832 221.956 - 221.956 554.788 - 554.788 Figures: G $ m Source: Ministry of Finance 38 Mid-Year Report 2008 Summary of Capital Expenditure by Sector and Type of Financing APPENDIX E6 MID YEAR CENTRAL GOVERNMENT SUMMARY OF CAPITAL EXPENDITURE BY SECTOR AND TYPE OF FINANCING SECTOR AND SOURCE 2007 2008 LATEST EST.
BUDGET 2007 H1 2008 H1 15.0 16.0 17.0 18.0 19.0 20.0 Public Safety 15.1 Specific 15.2 Non -Specific Tourist Development 16.1 Specific 16.2 Non -Specific Administration 17.1 Specific 17.2 Non -Specific Financial Transfers 18.1 Specific 18.2 Non -Specific Social Welfare 19.1 Specific 19.2 Non -Specific Overall Total 20.1 Specific 20.2 Non -Specific 1,037.980 107.792 930.188 1,320.350 630.000 690.350 8.460 - 8.460 2,528.665 1,405.001 1,123.664 3,974.550 2,058.000 1,916.550 2,968.982 2,010.056 958.926 4.065 - 4.065 3,177.645 1,680.500 1,497.145 4,237.092 2,615.000 1,622.092 1,483.465 607.700 875.765 42,892.487 22,138.143 20,754.344 40,853.800 24,374.800 16,479.000 - - 115.369 0.000 115.369 1.902 - 1.902 440.141 251.659 188.482 2,439.500 733.000 1,706.500 887.053 682.598 204.455 13,449.808 7,261.310 6,188.498 192.113 70.811 121.302 2.440 - 2.440 651.688 441.954 209.734 472.269 378.000 94.269 440.548 283.398 157.150 12,525.296 8,305.185 4,220.111 Figures: G $ m Source: Ministry of Finance 39 Mid-Year Report 2008 Summary of Capital Expenditure by Sector and Type of Financing APPENDIX F1 ITEM MID-YEAR EXTERNAL DEBT STOCK SUMMARY 2007 ACTUAL 2008 BUDGET 2007 H1 2008 H1 TOTAL EXTERNAL DEBT 718.781 742.921 658.712 773.777 1.0 Multilateral IBRD IDA IADB CDB CMCF IMF Others 2/ 2.0 Bilateral 2.1 Paris Club Creditors: USA -PL 480 UK Canada Germany -KFW Netherlands Denmark Norway Sweden France Japan T&T Russia Italy Others 3/ 429.02 0.00 9.97 152.58 123.89 31.10 58.56 52.91 267.94 59.05 0.00 1.06 0.00 0.00 0.00 0.00 0.00 0.00
Non-Paris Club Creditors: 208.89 230.19 193.92 246.03 Venezuela Argentina Kuwait Libya Cuba Bulgaria Others 4/ 3.0 Private Creditors Suppliers 5/ 3.2 Financial Markets/Bonds 6/ Notes: 1/ Takes into account debt relief granted under the Enhanced HIPC initiative and the Multilateral Debt Relief initiative.
2/ Includes EEC, EIB, IFAD,OPEC and IFC Loans.

3/ Includes CDC Loans.

4/ Includes DPRK, Brazil, China, UAE, India and Yugoslavia Loans.

5/ Includes ITT, Caterpillar Americas, Nissho Iwai/Komatsu, Boskalis, GPL (Banco de Credito, Panama) and EPDS debts.

6/ Includes Booker plc, Bonds, Bank of Nova Scotia, Lloyds Bank, GPL (NBIC/RBTT Debenture) and Barclays Bank debts.
13.38 8.55 13.41 8.29 2008 REVISED Figures: US $ m Source: Ministry of Finance 40 Mid-Year Report 2008 External Debt Stock Summary APPENDIX G1 MID-YEAR EXPENDITURE OF KEY SECTORS 2007 ACTUAL 2008 BUDGET 2007 HI 2008 HI Education 17,147,669,904 19,015,292,000 7,581,800,001 8,164,057,880 Health Culture PSM OP 10,312,278,960 11,746,654,000 4,404,875,048 4,864,504,390 947,442,000 1,734,436,000 362,584,110 696,717,879 222,608,238 251,991,000 88,440,987 100,522,545 317,299,000 94,559,000 Agriculture 6,706,252,000 6,288,298,000 2,497,245,000 2,088,549,375 Infrastructure 13,193,324,000 10,139,578,000 4,099,325,000 2,787,020,607 Housing and Water 5,779,116,000 5,519,130,000 1,662,896,980 1,427,622,449 Social Welfare 5,162,195,374 5,588,605,000 882,134,663 2,210,462,176 GRAND TOTAL 47,359,524,864 47,189,822,000 18,583,245,049 17,904,132,252 Figures: G $ Source: Ministry of Finance 41 Mid-Year Report 2008 Expenditure of Key Sectors