Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698073885736.pdf (Guyana)
MID-YEAR REPORT 2019 Ministry of Finance Main and Urquhart Georgetown.

Co-operative Republic of Guyana Streets, Report Title: Mid-Year 2019 Winston by: The Honourable Ministry Original Presented Published: of Finance Cover: The cover shows the Coat of Arms, Mid-Year oflndependence Production Services: © Copyright Printed 2019 Ministry with the colours in the Co-operative Logo and border of Finance.

Jordan, Report of the National of Guyana Republic Flag.
Minister of Finance ISBN 978-976-8254-44-3 (pbk) CO-OPERATIVE REPUBLIC OF GUYANA ELEVENTH PARLIAMENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA UNDER THE CONSTITUTION OF THE CO-OPERATIVE REPUBLIC OF GUYANA FIRST SESSION 2019 MID-YEAR REPORT Honourable Winston D. Jordan, M.P.

Minister of Finance August 9, 2019 Table of Contents List of Abbreviations 1.

Introduction 2.

Global Economic Development 3.

Domestic Development A.


Real Sector Economic Growth Agriculture, Fishing Forestry Mining and Quarrying Manufacturing Services and Construction B.
External Sector Capital Account Current Account C. Monetary Sector Money Supply Inflation Domestic Credit Interest Rates Exchange Rate D. Fiscal Sector Revenue Expenditure Public Enterprises E. Debt Management Total Public Debt Total Public Debt Service i Page iv 1 3 6 6 6 6 11 13 13 14 14 15 17 17 18 19 21 22 22 23 26 28 35 35 36 External Public Debt External Disbursements External Debt in Arrears External Public Debt Service Domestic Public Debt Stock Domestic Public Debt Service Government Guarantee F. Key Sector Highlights Education FEATURE: Prioritising the Performance Review of the Education Sector Health Water Sanitation Housing Agriculture Infrastructure Roads and Bridges Air and River Transport Sea and River Defence Energy Information Communication Technology Security Tourism Public Administration and Public Financial Management Box 1 – Guyana’s First Voluntary National Review of The Sustainable Development Goals Box 2 – The Institutional Demands of Oil and Gas 4.
Economic and Fiscal Risks and Proposed Policy Responses Box 3 – Sensitivity Analysis of GDP Box 4 – Exchange Rate Fluctuations and Debt 5.
Conclusion ii Appendices Real GDP Growth Rates by Sector Real Sector Share of GDP Balance of Payments Analytical Summary Monetary Survey Consumer Price Index Central Government Financial Operations Financial Operations of the Non-Financial Public Sector Public Enterprises Cash Flow Central Government Abstract of Non-Interest Current Expenditure by Chart of Account Non-Interest Current Expenditure by Agency Non-Interest Current Expenditure by Sector Central Government Summary of Capital Expenditure by Sector and Type of Financing Details of Expenditure: General Summary by Programme Central Government Abstract of Revenue by Head A1 A2 B C D E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 Central Government Tax Remissions by Category E11 Central Government Summary of Expenditures F G H (Economic Classification) Total Public Debt Stock Summary Expenditure of Key Sectors Agreements Signed Between Government of the Co-0perative Republic of Guyana and International Development Partners During the Period from Jan-Jun 2018 88 89 90 91 92 93 94 95 96 98 100 102 104 108 109 110 111 112 113 iii List of Abbreviations 3G ABCs Green Generation Guyana Agency Budget Committees ASYCUDA Automated System for Customs Data BoS CANU Bureau of Statistics Customs Anti-Narcotics Unit CARICOM Caribbean Community CDB CEIT CHPA CHW CJIA CPCE CPI CPR CSSP DOTS D&I Caribbean Development Bank Centre for Excellence in Information Technology Central Housing and Planning
 Authority Community Health Workers Cheddi Jagan International Airport Cyril Potter College of Education Consumer Price Index Cardiopulmonary Resuscitation Citizens Security Strengthening Programme Directly Observed Treatment Short Couse Drainage and irrigation ECLAC Economic Commission for Latin America and the Caribbean ETP FAM FDI FMAA GDP GFS GLDA GPF GPL GRA GRDB Endangered, threatened and protected Familiarisation Foreign direct investment Financial Management and Accountability Act 2003 Gross Domestic
 Product Guyana Fire Service Guyana Livestock Development Authority Guyana Police Force Guyana Power and Light Incorporated Guyana Revenue Authority Guyana Rice Development Board iv GSDS GTA GuyOil Green State Development Strategy: Vision 2040 Guyana Tourism Authority Guyana Oil Company Limited GuySuCo Guyana Sugar Corporation GWI HIV HoBA HS ICT IDB IFMIS IMF IMTCoP ITB LATA LED LTE M&E Guyana Water Incorporated Human Immunodeficiency Virus Head of Budget Agency Harmonised System Information Communication Technology Inter-American Development Bank Integrated Financial Management Information System International Monetary Fund Inter-Ministerial Technical Committee on Petroleum Internationale Tourismus-Börse Latin American Travel Association Light-Emitting Diode Long Term Evolution Monitoring and Evaluation MARDS Mahaica Abary Rice Development Services MDR MoE MSC NAREI NCDs NDIA NDMA NGO NIS NRF OPEC PAYE PCN Multi-drug resistant Ministry of Education Marine Stewardship Council National Agricultural Research and Extension Institute Non-communicable diseases National Drainage and Irrigation Authority National Data Management Authority Non-Governmental Organisation National Insurance Scheme Natural Resource Fund Organisation of the Petroleum Exporting Countries Pay as You Earn Project Concept Note v PEFA PEs PFM PIMA PIM PPCN PSIP PV SDGs SEI STI Public Expenditure and Financial Accountability Public Enterprises Public Financial Management Public Investment Management Assessment Public Investment Management Project Profile and Concept Note Public Sector Investment Programme Photovoltaic Sustainable Development Goals Skeldon Energy Incorporated Science, technology and innovation SWAPS Single Window Automated Processing System TINs TTC UG US VAT VEMS VNR WHO Taxpayer Identification Numbers Trained Teachers’ Certificate University of Guyana United States Value-Added Tax Visitor Exit Motivation Survey Voluntary National Review World Health Organization vi Mid-Year Report 2019
 1.
Introduction 1.1 This report is prepared pursuant to Section 67 of the Fiscal Management and Accountability Act (FMAA) 2003 that prescribes that a mid-year report shall be produced in a manner and format prescribed as follows: "A mid-year report shall include – (a) an update on the current macroeconomic and fiscal situation, a revised economic outlook for the remainder of the fiscal year, and a statement of the projected impact that these trends are likely to have on the annual budget for the current fiscal year; (b) a comparison report on the out-turned current and capital expenditures and revenues with the estimates originally approved by the National Assembly with explanations of any significant variances; and (c) a list of major fiscal risks for the remainder of the fiscal year, together with likely policy responses that the Government proposes to take to meet the expected circumstances."
1.2 The theme of Budget 2019 Transforming the Economy, Empowering People, Building Sustainable Communities for the Good Life guided the content of the National Budget that was presented to Parliament on November 26, 2018, pursuant to Article 219 (3) of the Constitution.

The related analyses and tables contained in this Mid-Year Report 2019 will address key issues captured in the Budget 2019 Speech and Estimates as presented to the National Assembly.
A revised economic outlook for 2019, in light of current developments both nationally and globally, is also provided.

1.3 A commendable historical record has been set by the Coalition Government, with the presentation of the third consecutive budget to the National Assembly in November, prior to the commencement of the fiscal year.

Were it not for the passage of the no confidence motion, the stage was set for this record to be extended in 2019.
In spite of the budget being available at the beginning of the fiscal year, human capacity and institutional strengthening, as well as fiscal and other challenges have served to constrain the pace of implementation.

Preparatory work for first oil has advanced with the passage of the Natural Resource Fund (NRF) Act and capacity building across several government agencies and departments.
Public financial management (PFM) reforms to further Page 1 of 113 Mid-Year Report 2019 strengthen and embed policy initiatives are underway.

They include: the introduction of a criteria-based public investment management (PIM) system; mandatory procurement planning; expanded monitoring and evaluation (M&E) of programmes; and, expansion of internal audit capabilities.

These are anticipated to result in more efficient public expenditure management.
1.4 With sustained positive economic growth and low single digit inflation, Government remains optimistic that the fiscal target will be achieved.
Following the mid- year review engagements and the commencement of the development of an M&E framework for the Green State Development Strategy: Vision 2040 (GSDS), Heads of Budget Agencies (HoBAs) are redoubling efforts to ensure that Budget 2019 programmes are fully and successfully implemented to enable the continued transformation of the economy and the empowerment of people that are so necessary for the realisation of the Good Life.

Page 2 of 113 Mid-Year Report 2019 2.


Global Economic Development 2.1 A number of country- and sector-specific developments across the advanced and emerging market country groups – trade tensions and tariff hikes between the United States (US) and China, lower business confidence, tighter financial conditions, and higher policy uncertainty – contributed to weaker global growth in the latter half of 2018.

This has spilled over to the first half of 2019.


As a result, the International Monetary Fund (IMF), in its July 2019 World Economic Outlook Update, projects global growth of 3.2 percent, 0.4 percentage points slower than 2018.

2.2 Growth in the advanced economies is expected to reach 1.9 percent at the end of 2019, 0.3 percentage points weaker than 2018.
The US economy is projected to expand by 2.6 percent, 0.3 percentage 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% points slower than 2018, since the -2% -2% temporary boost to the economy from the Global Growth Rates Global Growth Rates World World United States United States Euro area Euro area Latin America Latin America and the and the Caribbean* Caribbean* China China India India Note: Based on IMF WEO with the exception of LAC which is based on ECLAC report Source: Based on IMF WEO with the exception of LAC which is based on data from ECLAC sizable fiscal stimulus is expected to unwind during 2019.
The UK is expected to grow by 1.3 percent in 2019, compared with 1.4 percent in 2018, due to prolonged uncertainty about Brexit.

Growth in the euro area is forecasted to decline from 1.9 percent in 2018, to 1.3 percent in 2019, given expectations of lower investment spending, in light of a possible no-deal Brexit, as well as slower projected growth in Germany, Italy and France.
These three economies were affected by soft private consumption and weak industrial production; weak domestic demand; and street protests and worker strikes across several industries, respectively, in the second half of 2018, the effects of which carried over to 2019.
The Japanese economy, in contrast, is expected to grow 0.1 percentage points faster, to 0.9 percent in 2019, as there are expectations of increased fiscal support this year to offset the negative effects of a planned consumption tax increase in October 2019.
2.3 Emerging market and developing economies are projected to expand by 4.1 percent in 2019, slower than the 4.5 percent in 2018, primarily reflecting forecasts of weaker Page 3 of 113 Mid-Year Report 2019 growth for China and negative growth for Turkey.

The former economy is expected to grow by 6.2 percent, 0.4 percentage points slower than last year, due to lingering trade tensions with the US, weakening external demand, and slower growth in the latter half of 2018.
Growth in India is likely to increase by 0.2 percentage points, to 7 percent, supported by continued recovery of investment and robust consumption.

2.4 The Economic Commission for Latin America and the Caribbean (ECLAC) projects economic activity in Latin America and the Caribbean to expand by 0.5 percent in 2019, slower than 0.9 percent in 2018.
This outlook is based on expectations of negative effects of the aforementioned developments in advanced and emerging market and developing economies – especially the uncertainty regarding Brexit, trade tensions with China and the US, and tighter financial conditions in emerging markets.

Growth in South America is expected to weaken to 0.2 percent, from 0.4 percent last year.
2.5 On average, global price changes for Guyana’s major traded commodities were mostly negative during the first half of 2019, when compared with the same period in 2018.

The World Bank, in its July 2019 Pink Sheet, reported that the 60% 40% 20% 0% -20% -40% Growth in Agricultural Commodity Prices average price of rice (Thai 5%) declined by Sugar, world Rice, Thai 5% Logs, Cameroon Source: World Bank 6.1 percent, to US$411 per metric tonne, year-on-year.
Prices are projected to fall marginally to US$410 per metric tonne at the end of 2019, 2.6 percent lower than the price in 2018, partly due to an expected increase in global production.1 The average price of timber also weakened over the review period, by 1.3 percent, to US$271 per cubic metre.

However, prices are anticipated to strengthen to US$275 per cubic metre at the end of the year, 1.9 percent higher than the previous year.
Contrary to the above, the average price of sugar remained unchanged at US$0.28 per kilogramme over the review period, but with notable increases within the month of June 2019, mainly on account of severe 1 Commodity price forecasts in this section are based on the April release of the World Bank’s Commodity Markets Outlook.

Page 4 of 113 drought in India.

The price of sugar is forecasted to stay at US$0.28 per kilogramme to the end of 2019, the same as 2018.
Mid-Year Report 2019 2.6 Like commodity prices for rice and timber, for example, metal prices also declined over the review period, with the average international price of gold and aluminum falling by 0.8 percent and 17.2 60% 40% 20% 0% -20% -40% percent, to US$1,307 per ounce and US$1,829 per metric tonne, respectively.
While the price of aluminum is expected to Growth in Metal Prices Gold Aluminum Source: World Bank strengthen to US$1,940 per metric tonne, at the end of 2019, it will still be 8 percent lower than 2018.

The price of gold is anticipated to rise slightly to US$1,310 per ounce at the end of 2019, 3.2 percent higher than 2018, as demand is anticipated to maintain a healthy pace, and the US Federal Reserve holds off on interest rate hikes.
2.7 The average price of Brent crude oil Growth in Brent Crude Oil Prices was US$66 per barrel during the first half of 2019, 7 percent lower than the same period in 2018.

This was partly due to a slowing global economy, and escalating trade tension between the US and China.
Prices are expected to remain at this level 60% 40% 20% 0% -20% -40% -60% Source: World Bank to the end of 2019, 3.4 percent lower than 2018 as diverging forces – strong growth outcomes for US shale production; production cuts by OPEC; declining output from Venezuela; fears of supply disruptions in Libya and Nigeria; and US sanctions against Iran’s oil industry – are expected to affect production.

Page 5 of 113 Mid-Year Report 2019 3.

Domestic Development A.


Real Sector2 Economic Growth 3.1 The domestic economy is estimated Real GDP Growth to have grown by 4 percent in the first half of 2019.

Growth continued to be broad- based with notable expansions in key sectors such as rice, forestry, gold, manufacturing, construction, wholesale and retail trade, and financial and 12% 10% 8% 6% 4% 2% 0% -2% Source: Bureau of Statistics insurance activities.
Investments by both businesses and households continue to trend upward, evidenced by a 5.7 percent increase in private sector credit.

This was driven by significant increases in real estate mortgages as well as loans to business enterprises and individuals.

Agriculture, Fishing and Forestry 3.2 In the first half of 2019, the Agriculture, Fishing and Forestry sector is estimated to have contracted by 0.3 percent, compared to growth of 4.9 percent for the 2018 half- year.
This outcome was a result of declines in the sugar, fishing and livestock subsectors which outweighed significant gains in the rice, other crops and forestry subsectors.

Sugar 3.3 The Guyana Sugar Corporation (GuySuCo) fell short of its production target for the first crop by 1 percent, with output reaching 33,531 metric tonnes of sugar.

There were 2 All comparisons and growth rates referred to in this section are between the first half of 2018 and the first half of 2019.
Page 6 of 113 delays in the start of production that were Sugar Production Mid-Year Report 2019 due to the late delivery of materials for critical repairs to boilers in all factories, as well as extended equipment maintenance at the Uitvlugt factory.

Thus, the commencement of cane harvesting was pushed to late February.
However, once ) s 0 0 0 ' ( s e n n o t c i r t e M 120 100 80 60 40 20 0 Source: Guyana Sugar Corporation harvesting began, industry yields were higher than the same period last year, by 1.4 percent, with considerable gains being made at Uitvlugt.

There were also noticeable improvements in the recovery of sugar at both the Uitvlugt and Blairmont estates.
The Corporation estimates that production for the second crop will be 73,516 metric tonnes, resulting in a growth rate of 2.3 percent in 2019, down from the 15.6 percent forecasted at the time of the Budget.

The first round of cane assessment for the 2019 second crop was completed; the canes are relatively well grown and continue to develop in favourable conditions.
However, it is noted that delays in the procurement of inputs, including fertilisers and spare parts, could affect production for the remainder of 2019, as well as 2020.

Rice 3.4 The rice industry grew by an Rice Production estimated 3.7 percent in the first half of 2019.

This increase was due to improvements in both the number of hectares harvested and the yield.
The former grew by 1.5 percent to reach 87,681 ) s 0 0 0 ' ( s e n n o t c i r t e M 400 350 300 250 200 150 100 50 0 hectares at the end of June 2019.

There Source: Guyana Rice Development Board were notable increases in hectares harvested in Regions 4, 5 and 6, which offset contractions in Regions 2, 3 and 9.

The first crop yield averaged 6 metric tonnes per hectare in 2019, the highest yield ever, in addition to being 2.1 percent above the previous year.
This improvement was due to several factors, including adoption of improved paddy Page 7 of 113 Mid-Year Report 2019 varieties and practices primarily by farmers in Region 6, where yields grew by 16.9 percent, on average, despite the threat of paddy bug infestation.

While sowing for the second crop continued into July, early indications suggest that the sector is on track to meet the production target identified at the time of Budget 2019.
The Guyana Rice Development Board (GRDB) has deployed officers to work with farmers to contain the paddy bug threat and ensure that this target is achieved.

Other Crops 3.5 The other crops subsector is estimated to have grown by 4.8 percent in the first half of 2019, faster than the revised rate of 4.6 percent for the first half of 2018.

This was driven by increased production of root crops, spices and vegetables, which expanded by 1.5 percent, 4.1 percent, and 1.2 percent, respectively.
Bitter cassava and yam production were responsible for the increase in root crops, while pepper, celery and ginger production drove the increase in spices.

The production of many of the traditional vegetables was higher in the first half of 2019, but there was also notable expansion in the production of non-traditional vegetables such as broccoli and cauliflower.

The subsector is expected to grow by 4 percent in 2019, as originally projected.
Livestock 3.6 The livestock subsector, which recorded remarkable growth in 2018, is estimated to have contracted by 8.1 percent, in the first half of 2019.

This was as a result of a decline in broiler meat production and, to a lesser extent, Livestock Production HY 2019 HY 2018 Beef Mutton Pork Chicken Table Eggs Milk Note: All figures are in thousands.

Meat production is measured in metric tonnes and milk in litres.
850 34 306 21,219 13,023 19,840 1,170 33 431 19,476 19,719 19,530 Percent change 37.6% -1.5% 40.9% -8.2% 51.4% -1.6% milk production, which fell by 8.2 Source: Ministry of Agriculture percent and 1.6 percent, respectively.

The contraction in the former was due to a supply imbalance of a large producer, who reduced output so as to run down stocks.
Subsequently, there has been a shortage in the supply of chicken on the local market, and Page 8 of 113 Mid-Year Report 2019 efforts to address this have been hampered by poor hatchability of eggs and the stunted growth of chickens.

Beef and pork production continued to make steady gains, growing by an estimated 37.6 percent and 40.9 percent, respectively.
This was on account of the ongoing artificial insemination and training programmes, which have helped to improve animal productivity, as well as an increased number of farmers involved in animal production.

The output of table eggs also benefited from more farmers becoming involved in this activity, which has increased the national laying flock.

In the first half of 2019, imports of layer chicks and eggs grew by 25 percent and 186.7 percent, respectively, to reach 45,000 chicks and 129,000 eggs.
At the same time, many birds are currently in the laying stage, which has resulted in production rising by 51.4 percent, at the end of the first half.

The livestock subsector is expected to grow by 0.7 percent in 2019, with the expectation that the supply of broiler meat will expand in the second half, as private producers take corrective action to meet the current shortfall in the market.
Despite this expected increase in production in the second half of 2019, the anticipated outturn is 1.6 percentage points lower than projected in Budget 2019.

Fishing 3.7 The fishing subsector faced Marine Fisheries Production significant challenges in the first half of 2019, as reflected in the estimated contraction of 12.2 percent.
The invasion of the sargassum weed, which provides a habitat and source of food for many 18 16 14 12 10 8 6 4 2 0 ) s 0 0 0 ' ( s e n n o t c i r t e M aquatic species, has proven disruptive to Shrimp Finfish Source: Ministry of Agriculture fisherfolk across the Caribbean.

In Guyana, the shrimp subsector has been particularly hard hit by the current invasion, with total shrimp production declining by 36 percent, at the end of the first half of 2019.
While the number of vessels harvesting prawns has fallen to 45 percent of the fleet, in the first half of 2019, there has been an increase in the vessels targeting red snapper, which has resulted in a 63.3 percent increase in the production of this species at the end of the first half of 2019.

Artisanal fishermen have also realised Page 9 of 113 Mid-Year Report 2019 significant gains, with their catch of finfish growing by 10.8 percent at the end of the first half.
However, these gains were offset by declines in production in the industrial finfish and tuna categories, which resulted in overall growth in finfish production of 1.4 percent.

Based on the outturn at the half-year, the growth rate for the fishing sector has been revised downwards.
Forestry 3.8 The forestry subsector is estimated Timber Production to have grown at the half-year, for a second consecutive year, with the production of timber (which includes logs, roundwood, primary lumber, splitwood and fuelwood) rising 7.8 percent above the level achieved at the end of June 2018.

This pushed ) s 0 0 0 ' ( s e r t e m c i b u C 300 250 200 150 100 50 0 Logs Roundwood Sawnwood Fuelwood Source: Guyana Forestry Commission growth in the sector to 8.5 percent in the first half of 2019.
The improvements to interior roads in the latter half of 2018, saw community loggers, particularly in Region 10, realising higher production levels in the first quarter of 2019.

Production continued to surge, driven by small scale concessions and community forestry operators.

At the end of the first half, log production grew by 6.8 percent, mainly on account of the increased extraction of greenheart logs to meet local demand.
On the other hand, weaker international demand for roundwood resulted in a contraction of this category in the second quarter, which resulted in a 2.6 percent decline relative to the previous half-year.

Primary lumber producers recorded gains of 32.4 percent in the first half, capitalising on increased local demand for construction.

The outlook for the remainder of the year remains positive for this subsector, with log production expected to remain high and roundwood to stabilise.
Given these factors, the forestry sector is conservatively expected to expand by 5 percent, 3.1 percentage points above the projection in Budget 2019.

Page 10 of 113 Mid-Year Report 2019 Mining and Quarrying 3.9 The mining and quarrying sector is estimated to have grown by 2.6 percent in the first half of 2019, due to an expansion in the gold mining subsector.

The increase was sufficient to offset lower production in bauxite and other mining categories.
As a result, growth in the first half was 0.3 percentage points faster than the first half of 2018.

Bauxite 3.10 The bauxite mining subsector Bauxite Production contracted by 2.9 percent in the first half of 2019, with total production of all grades contracting by 1.1 percent.

Production got off to a brisk start in early 2019, after the US decided to lift sanctions against Rusal.
However, there was a significant setback ) s 0 0 0 ' ( s e n n o t c i r t e M 1,400 1,200 1,000 800 600 400 200 0 Source: Guyana Geology and Mines Commission in February, when strike action by workers of the Bauxite Company of Guyana Inc., for wage increases, escalated, resulting in the company ceasing operations.

This dispute lasted for more than a month and led to production falling by almost 25 percent in the first quarter.
However, production was ramped up in the second quarter and that helped to mitigate the loss in the previous quarter.

The subsector’s output is expected to remain stable for the remainder of the year, but, in light of the underperformance in the first half, the growth rate for 2019 has been revised downward to 1.3 percent, from 8.6 percent projected at the time of Budget 2019.
Page 11 of 113 Mid-Year Report 2019 Gold 3.11 The gold mining subsector is Gold Production estimated to have expanded by 4.4 percent at the end of the first half of 2019, to reach 300,674 ounces.

Further growth was curtailed by a shortfall in production by one of the large mining companies whose ) s 0 0 0 ' ( s e c n u o y o r T 250 200 150 100 50 0 access to higher grade ore has been Small and medium Large Source: Guyana Gold Board restricted as a result of a wall pit failure in 2018.
Production by the other large company, in the first half of 2019, exceeded the previous year’s production by 10.1 percent, but fell short of the budgeted amount.

However, this company anticipates that activities in the second half of the year, which include underground exploration, could reverse the shortfall.
The industry’s half-year performance also benefitted from a 15.8 percent increase in declarations from small and medium scale miners, who accounted for more than 60 percent of declarations in the reporting period.

Miners responded positively to improved road and weather conditions earlier in the year, while the surge in declarations in the second quarter was largely in response to more favourable international prices.
This momentum in production is expected to continue into the second half of the year and push annual growth in the subsector to 3.2 percent, greater than the 2.5 percent projected at the time of Budget 2019.

Other Mining 3.12 The other mining subsector, which comprises diamond, sand and stone, is estimated to have contracted by 0.7 percent in the first half of 2019.

This is despite half- year growth of 9.2 percent in sand mining and 15.1 percent in stone quarrying.
Diamond declarations, which contracted by 37.1 percent in the first half of 2019, drove the decline in other mining.

Some analysts have posited the increased exploitation of gold as a possible reason for lower diamond declarations.

This sector is expected to grow by 1 percent in 2019, slower than the 5.3 percent projected in Budget 2019.
Page 12 of 113 Mid-Year Report 2019 Manufacturing 3.13 The manufacturing sector is estimated to have expanded by 3.6 percent in the first half of 2019, due to growth in rice and other manufacturing.

The latter category expanded by 4 percent, on account of increased output of pharmaceuticals, beverages, edible items and timber products.

This sector is expected to grow by 3.7 percent in 2019, slower than the 4.2 percent projected in Budget 2019, as a result of the anticipated decrease in sugar production.
Services and Construction 3.14 The services sector is estimated to have grown by 4.6 percent in the first half of 2019, the highest half-year rate since 2011.

This increase was driven by wholesale and retail trade, transportation and storage, financial and insurance activities, rental of dwellings, and other service activities, which grew by 5.9 percent, 5.5 percent, 4.1 percent, 5.9 percent, and 10 percent, respectively.
This momentum is expected to continue into the second half, as signalled by businesses in the services sector increasing their borrowing by 7.2 percent in the first half.

There has also been increased borrowing for real estate of 5.7 percent, which has contributed to an estimated 8.2 percent growth in the construction sector over the same period.
Also contributing to the sector’s growth was Government expenditure on construction activities, through the Public Sector Investment Programme (PSIP), which increased by 12.4 percent in the first half of 2019.

In 2019, the services sector is expected to grow by 4.3 percent, 0.6 percentage points above the projection in Budget 2019, while growth in the construction sector is anticipated to remain unchanged from the initial projection of 10.5 percent.
3.15 At the time of Budget 2019, the economy was forecasted to grow at a rate of 4.6 percent in 2019.

This was later revised downwards to 4.4 percent in April 2019, given the better-than-expected outturn for 2018.

Based on the performance of the various sectors in the first half of 2019, the projected growth rate for this year has been revised upwards to 4.5 percent.

Page 13 of 113 Mid-Year Report 2019 B.


External Sector 3.16 In the first half of 2019, the overall Balance of Payments balance of payments registered a deficit of US$86.9 million, 37.9 percent smaller than the previous half-year’s deficit of US$139.8 million.

This was supported by a higher surplus on the capital account, despite a higher current account deficit.
s n o i l l i M $ S U 1,000 800 600 400 200 0 -200 -400 -600 -800 -1,000 Overall Balance Current Account Capital Account HY-2018 HY-2019 Source: Bank of Guyana Capital Account 3.17 The capital account recorded a surplus of US$795.2 million, significantly higher than US$477.6 million, over the previous half-year.
This was primarily attributable to substantial growth in medium- and long-term capital which was supported by an increase in capital transfers to the private sector, of 67 percent to US$803.6 million.

This, in turn, was mainly due to an expansion in foreign direct investment (FDI), of 60.5 percent to US$826.4 million.

The significant increase in FDI was largely supported by oil and gas activities, which accounted for US$354.6 million of the amount.
There was also strengthening of the non-financial public sector (net) position, to a surplus of US$4.7 million from a deficit of US$0.8 million, primarily due to an increase in disbursements.

The latter expanded by US$8.2 million as a result of higher loan disbursements, mainly s n o i l l i M $ S U 900 800 700 600 500 400 300 200 100 0 -100 Capital Account from the Caribbean Development Bank (CDB) and China EXIM Bank.
Short-term Capital Additionally, capital transfers supported Capital Transfers the overall strengthening of the capital Medium- and Long- term Capital (Net) account, rising to US$13.9 million from US$8.9 million.

The short-term capital net position moved to a deficit of US$26.9 HY-2018 HY-2019 Source: Bank of Guyana million, from US$11.7 million.
Page 14 of 113 Mid-Year Report 2019 Current Account 3.18 In contrast to the capital account, the current account recorded a deficit of US$866.8 million at the end of June 2019, from a deficit of US$578.5 million at the end of June 2018.

This resulted largely from a substantially higher deficit on the merchandise trade account, and, to a lesser extent, an increase in the services account deficit.

However, there was an increase in unrequited transfers.
Merchandise Trade 3.19 The merchandise trade account weakened to a deficit of US$628 million, higher than the deficit of US$329.3 million from the previous year, on account of stronger growth in total imports of 31.6 percent to US$1,371.8 million, relative to 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 s n o i l l i M $ S U Merchandise Imports Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun 2018 2019 less robust expansion in export receipts of Consumption Goods Intermediate Goods Capital Goods Source: Bureau of Statistics 4.3 percent to US$743.8 million.
Imports of intermediate goods expanded by US$170.4 million to US$706 million, driven largely by other intermediate goods, chemicals, parts and accessories imported growing significantly on account of oil and gas activities.

There was marginal growth of 1.1 percent, or US$2.6 million, in the imports of fuel and lubricants.
Imported capital goods increased substantially, by US$155.2 million to US$423 million, primarily attributed to a substantial expansion in mining machinery, again, supported by oil and gas activity.

Consumption goods on the other hand, grew less robustly by US$2.2 million to US$236.8 million, on account of increases in other non- durables, other semi-durables, and other durables, which were partly offset by a decrease in the importation of food for final consumption.
Page 15 of 113 3.20 For export earnings, the main contributors were gold, fish and fish by- products, and sugar, which increased by US$41.5 million, US$3.4 million, and US$1.8 million, respectively.

Noteworthy, gold exports by “other dealers” accounted for 52.2 percent of the US$411.2 million s n o i l l i M $ S U 63.0 53.0 43.0 33.0 23.0 13.0 3.0 Mid-Year Report 2019 Total Gold Export Earnings Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun 2018 2019 GGB GGF Troy Resc.
Other Dealers Source: Bureau of Statistics earned from the export of this metal in the first half of 2019.
Other dealers accounted for 44.9 percent of gold exports for the same period in 2018.3 3.21 Receipts from rice exports declined Total Rice Export Earnings by US$9.9 million this year; while there were higher earnings from exports to the EU and Venezuela, there were no exports to the Cuban and Mexican markets in 2019. s n o i l l i M $ S U 21.0 19.0 17.0 15.0 13.0 11.0 9.0 7.0 5.0 3.0 1.0 Net Services CARICOM EU Cuba Mexico Other Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun 2018 2019 Source: Bureau of Statistics 3.22 The outturn on the services account, which moved from a deficit of US$443.9 million in June 2018 to US$456.3 million in June 2019, resulted from higher net payments for non-factor services, of US$19.5 million, being partially offset by lower net payments for factor services, of US$7.1 million.
The increase in the former was largely driven by higher payments for transportation, which rose by US$53.8 million.

The improved factor services net position, however, was attributed to inflows growing faster than outflows.

These increased inflows, of US$10.3 million, were largely supported by inflows from income on equity growing by US$9.3 million.

3The “other dealers” category includes all licensed traders and excludes Troy Resources, Guyana Gold Fields, and Guyana Gold Board.
Page 16 of 113 Unrequited transfers Mid-Year Report 2019 3.23 Unrequited transfers expanded by U$22.8 million, to US$217.5 million in the first half of 2019, supported mainly by increased workers’ remittances and in-kind transfers, by US$90.8 million and US$3.6 million, respectively.

Notwithstanding, other current transfers, which include receipts to bank accounts abroad and remittances by foreign embassies, declined by US$71.7 million.
C. Monetary Sector Money Supply 3.24 At the end of June 2019, the money Composition of M2 HY Average supply (M2) expanded robustly by 9.5 percent, to $408 billion, when compared with the same period in 2018.
This was the fastest half-year growth since June 2012, s n o i l l i B $ G 250 200 150 100 50 0 supported by expansions in both narrow 2015 2016 2017 2018 2019 and broad money of 13.1 percent and 6.9 Currency in circulation Time and savings deposits Demand dep + cashiers Source: Bank of Guyana percent, to $175.7 billion and $232.4 billion, respectively.
3.25 The outturn in narrow money was attributed to growth in all its monetary aggregates, except for cashiers’ cheques and bank acceptances, which decreased by 28 percent to $3.7 billion.

Moreover, currency in circulation increased by 12.4 percent to $101 billion; 2014 was the last time a half-year growth rate above 12 percent was recorded for this category.
This performance in 2019 resulted from currency issuance expanding by 12.7 percent to $108.1 billion, which offset growth in holdings of commercial banks of 18.4 percent to $7.2 billion.

Noteworthy is that currency issuance grew at the fastest rate in 4 years.

Demand deposits also expanded strongly, by 17.7 percent to $71 billion, outpacing growth in the past 7 years.
This was on account of an increase in business enterprises and individual customers’ demand deposits, which rose by 23.4 percent and Page 17 of 113 Mid-Year Report 2019 5.6 percent to $50.8 billion and $20.2 billion, respectively.

Business enterprises’ demand deposits recorded it strongest expansion since June 2008.

3.26 Quasi money grew by 6.9 percent at the end of June 2019 to $232.4 billion, the fastest rate of growth for this period since 2013.
The performance in the first half 2019 was supported by an increase in both time and savings deposits of 16.8 percent and 5.7 percent to $28.3 billion and$204.1 billion, respectively, with the former expanding faster than it has in the past 18 years.

Inflation 3.27 The inflation rate from December Price Levels 2018 to June 2019 reached a moderate 1.6 percent.

This was due to higher food prices.


The 12-month inflation rate at the end of June 2019, which grew to 2.4 percent, was also driven mainly by higher I P C 120 119 118 117 116 115 114 113 112 4 2 0 e t a r n o i t a l f n I 8 1 - n a J 8 1 - b e F 8 1 - r a M 8 1 - r p A 8 1 - y a M 8 1 - n u J 8 1 - l u J 8 1 - g u A 8 1 - p e S 8 1 - t c O 8 1 - v o N 8 1 - c e D 9 1 - n a J 9 1 - b e F 9 1 - r a M 9 1 - r p A 9 1 - y a M 9 1 - n u J food prices.
Over the 12 months, these CPI 12 Month Inflation Source: Bureau of Statistics prices rose by 6.3 percent, and affected 2.5 percentage points of the increase in the Georgetown-based Consumer Price Index (CPI)4.

3.28 Within the food category, the main contributors to the increase were meat, fish and eggs, vegetables and vegetable products, and condiments and spices, which increased by 12.8 percent, 10.9 percent and 18.6 percent, respectively.
These were responsible for 1.3 percentage 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 Contribution of Categories to Inflation Rate Miscellaneous Goods & Services Education, Recreation & Cultural Services Medical Care & Health Services Transport & Communication Furniture Housing Footwear & Repairs Clothing Food Source: Bureau of Statistics Dec-18 - Jun-19 Jun-18 - Jun-19 points, 0.5 percentage points, and 0.3 percentage points of the increase in food prices, 4The inflation rate is measured by the percent change in the CPI.
Page 18 of 113 Mid-Year Report 2019 respectively.

The 12-month inflation rate is expected to increase marginally to 2.5 percent at the end of 2019, unchanged from the forecast at the time of Budget 2019.

Domestic Credit 3.29 At the end of the first half of 2019, net domestic credit of the banking system grew by 14.1 percent over the same period last year, to $33.4 billion, supported by an expansion in both private and public sector credit.
3.30 Total credit to the private sector Private Sector Credit 2018- 2019 increased by 5.7 percent to $238.8 billion over the review period, faster than the past three years.

This was supported by an expansion in loans and advances to individuals and businesses, except for businesses in the agriculture sector.
The s n o i l l i B $ G 245.0 240.0 235.0 230.0 225.0 220.0 215.0 210.0 205.0 2018 2019 Jan Feb Mar Apr May Jun Source: Bank of Guyana decline in this sector, of 2.1 percent, to $13.1 billion resulted mainly from a contraction in lending for sugarcane and livestock production of 35.4 percent and 19.8 percent, to $0.9 billion and $1.4 billion, respectively.

3.31 In contrast, credit to all other Loans to Private Enterprises by Sector sectors recorded growth.
Credit to the mining and quarrying, manufacturing, and services sectors increased by 6 percent, 0.5 percent, and 7.2 percent, to $5.2 billion, $26.1 billion, and $70.5 billion, respectively.
The increase in the Agriculture Mining & Quarrying Manufacturing Services Jun-19 Jun-18 - 20,000 40,000 60,000 80,000 G$ Millions Source: Bank of Guyana mining and quarry sector was attributed solely to growth in lending to industries outside of the bauxite subsector, whereas the expansion in the manufacturing sector resulted from mixed outturns in the subcategories.
There was a sizeable increase of $1.4 billion and $0.5 billion in the beverages, food and tobacco, and other construction and Page 19 of 113 Mid-Year Report 2019 engineering subcategories, which was partially offset by a notable decline of $1.2 billion and $0.5 billion in lending to the other manufacturing and rice milling industries, respectively.
The outturn in lending to the services subcategories, on the other hand, was mostly positive, with major contributors such as the “other services”, distribution, entertainment and catering, and education subcategories increasing by $2.2 billion, $1.7 billion, $0.8 billion and $0.7 billion, respectively.
3.32 Lending to households recorded Total Loans to Households robust growth of 13.5 percent, to reach $32 billion; this was stronger than the past two years, and was supported by an increase in loans and advances for all purposes, with Housing Motor Cars Other Durable Education Travel the exception of other durable goods and Other Purposes Jun-19 Jun-18 travel.
Moreover, lending for housing, - 2,000 4,000 6,000 8,000 10,000 12,000 G$ Millions Source: Bank of Guyana motor cars and other purposes expanded by $1.4 billion, $1.3 billion and $1.1 billion, respectively.

3.33 Of the other major categories of credit, which include real estate mortgages, credit instruments and “other credit”, only the former two increased, by 5.7 percent and 2.8 percent, to $84.5 billion and $3.1 billion, respectively.
The expansion in real estate mortgages, which surpassed the half-year growth rate in each of the past three years, resulted from an increase in lending of 5 percent and 14.7 percent for private dwellings, and industrial and commercial properties, respectively.
Further, growth in credit instruments was solely supported by increased lending for credit cards, while the decline in the “other credit” category of 8.5 percent to $4.1 billion, resulted from a contraction of 8.4 percent and 10.7 percent in securities, and shares and other equity, respectively.
3.34 Public sector credit (net), increased by 48.7 percent to $66.6 billion, mainly due to an expansion in Central Government credit by 17.1 percent to $115.6 billion.5 Conversely, 5Public sector credit (net) consists of deposits net of loans and advances, treasury bills and debentures.
Page 20 of 113 Mid-Year Report 2019 net deposits of the “Other Public Sector,” which includes Local Government and the National Insurance Scheme (NIS), contracted by 34.3 percent to $19.3 billion, whilst the net deposits of the Public Enterprises (PEs) increased by 20.8 percent, or $29.7 billion, on account of higher deposits by Guyana Oil Company (GuyOil) Limited and Guyana Power and Light (GPL) Inc. at local commercial banks.
3.35 Total liquid assets of the commercial banks expanded by 6.2 percent t0 $127.7 billion.

Total reserves deposited with the Bank of Guyana were $75.3 billion, 0.7 percent higher than the level at the end of June 2018.

The required statutory reserves of the commercial banks were $48.2 billion at the end of June 2019, creating an excess over the minimum requirement of $27.1 billion.
Interest Rates 3.36 At the end of June 2019, domestic treasury bill yields were mostly lower, when compared with June 2018, except for the 91-day domestic treasury bill.

This yield remained unchanged from 1.54 percent, since February 2017, due to non- t n e c r e P 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 - issuance.
On the contrary, the 182-day and Treasury Bill Rates Jun-18 Jun-19 91 Days 182 Days 364 Days Source: Bank of Guyana 364-day domestic treasury bill yields declined by 14 basis points and 4 basis points, to 0.89 percent and 0.95 percent, respectively, as a result of competitive bidding for these treasury bills.

3.37 As it relates to interest rates at commercial banks, these were also lower at the end of June 2019.
The average small savings rate declined by 10 basis points to 1.00 percent, while the weighted average lending rate reduced by 15 basis points to 9.97 percent.

Page 21 of 113 Exchange Rate 3.38 The official exchange rate at the Bank of Guyana was $208.5 to the US dollar in June 2018, steady since May 2018.

The market mid-exchange rate, in contrast, depreciated to $213.3 to the US e t a R e g n a h c x E 214.0 212.0 210.0 208.0 206.0 204.0 202.0 dollar, from $212.7.
D. Fiscal Sector Mid-Year Report 2019 Exchange Rate: GYD to USD Mid Rate Official Rate Source: Bank of Guyana 3.39 In the first half of 2019, the fiscal position of non-financial public sector reflected a deficit of $0.9 billion, a reversal from the surplus of $31.2 million for the same period, in 2018.

This outturn was due to increases in Central Government current and capital expenditure, which grew by $10.8 billion and $6.1 billion, respectively.
These increases outweighed improved current revenue and capital grants of Central Government as well as the operational surplus achieved by the PEs.

3.40 Central Government overall balance, for January to June 2019, was a surplus of $2.4 billion compared to$3.1 billion, in the same period, in 2018.
This was on account of higher levels of current and capital expenditure, which were larger than the increase in current revenue collections and grants received in the first half of 2019, of $6.7 billion and $2.7 billion, respectively.

The higher grants were mainly from non-projects which grew by $3.1 billion to $5 billion during the period January to June 2019.

This increase resulted from the one-off transfer of $3.1 billion from the ExxonMobil signature bonus account that was held at the Bank of Guyana.
This account was closed and all funds, including interest of $103.6 million, were transferred into the Consolidated Fund account, during the first quarter of 2019.

Project grants increased by $1 billion to $2.9 billion during the assessment period in 2019 compared to the same period in 2018.
Page 22 of 113 Mid-Year Report 2019 3.41 The overall deficit in 2019 is projected to decrease by 0.1 percentage points to 4.9 percent of GDP despite a revision of the budgeted amount from $41.5 billion to $41.8 billion.

The projection for the Central Government current balance is expected to reduce to $12.3 billion for the year, from a budgeted $16.6 billion.

The revenue projection, for 2019, was revised upwards to $238.4 billion, from a budgeted $238.3 billion.
Capital expenditure is expected to be maintained at the budgeted $69.3 billion.

Revenue 3.42 In spite of the revenue-reducing measures announced in Budget 2019, revenue collection totalled $115.9 billion, at the end of June 2019, 6.1 percent above the corresponding period in 2018.

This was due primarily to increased collections from all the major tax types: income taxes increased by $6.2 billion; value-added and excise taxes grew by $1.6 billon; and trade taxes were higher by $0.8 billion.
3.43 Tax revenue collections during the first half of 2019 grew by $8.3 billion, or 8.3 percent, to reach $109 billion, of which arrears accounted for $2.8 billion.

These collections represented 94 percent of total revenue collected, up from 92.2 percent in the same period of 2018.

Non-tax revenue collections decreased by $1.7 billion, or 19.4 percent, as a result of lower transfers from statutory bodies.
3.44 Internal revenue collection increased by $6.1 billion, or 12.5 percent, to $54.3 billion, during the first half of 2019.

This increase was primarily attributed to higher payments of withholding tax, personal income taxes and private corporation tax.

During this period, withholding tax grew by $3.9 billion, or 65.9 percent, largely reflecting payments from companies within the oil and gas sector.

Arrears on this category accounted for $0.4 billion, during the review period.
In addition, the number of companies making payments of withholding tax increased by 26, or 18 percent.

Page 23 of 113 3.45 In the first half of 2019, personal Major Tax Revenue Categories Mid-Year Report 2019 income tax collections grew by $2 billion, or 16.4 percent, when compared with the same period in 2018.

Companies operating in the oil and gas sector accounted for $1.2 billion, or 61 percent, of the collections.
The other entities contributing to the increased collections were mining n o i l l i M $ 60 50 40 30 20 10 0 2014 HY 2015 HY 2016 HY 2017 HY 2018 HY 2019 HY CUSTOMS AND TRADE TAXES VALUE-ADDED AND EXCISE TAXES INTERNAL REVENUE Source: Guyana Revenue Authority companies, public institutions and telecommunications companies.

The number of employers making payments rose by 6.3 percent or 120 employers during the first half of 2019, in comparison to the same period in 2018.
Arrears payments were $0.2 billion for PAYE and $0.6 billion for individual income taxes.

3.46 Private corporation taxes increased by $0.7 billion, or 4.1 percent, reflecting higher payments of current and advance taxes of $2 billion from companies within the services sector, while collection of arrears declined from $1.8 billion to $0.5 billion.

The total number of companies making payments during the review period increased by 46, or 6.6 percent.
3.47 Net property tax of the private sector was $3.6 billion, of which individuals’ payments were $0.7 billion.

Payment of current taxes by companies increased by $24.7 million, or 0.9 percent; and individuals by $76 million, or 14.2 percent.

Arrears payments for companies and individuals were $127.8 million and $101.7 million respectively, during January to June 2019.
3.48 Customs and trade tax collections grew by $0.7 billion, to $10.6 billion, during the first half of 2019, when compared with the same period in 2018.

Import duties accounted for 98.1 percent of the increased collections.

This was due to the increased collection of duties from commodity imports, especially lubricating oils and petroleum bitumen.

There was also growth in the environmental levy by $78.5 million, or 8.8 percent, above the period January to June 2018.
Page 24 of 113 Mid-Year Report 2019 3.49 Value-added tax (VAT) collections increased by $2.1 billion to $24.8 billion, during January to June 2019, when compared with the same period in 2018.

Over the review period, VAT from domestic goods rose by $2 billion, primarily due to higher payments from the manufacturing, distribution, services and oil and gas sectors.

Similarly, VAT on imports of goods and services grew by $0.2 billion.

Arrears payments on VAT on domestic goods amounted to $29.5 million.
3.50 Revenue collected from excise taxes in the first half of 2019 amounted to $19.3 billion, $0.6 billion below the same period in 2018.

The decrease resulted from lower values of diesel oil and motor spirits (gasoline), as well as more companies benefitting from tax exemptions for petroleum products during the review period.

Collections from imported petroleum products and motor vehicles accounted for $12.6 billion and $3.4 billion, respectively.
Excise tax collections from domestic supply increased by $14.9 million, to $2.2 billion.

3.51 In the first half of 2019, travel tax collection recorded an increase of $139.2 million, or 10.7 percent above the same period in 2018.

The growth resulted from increased ticket sales to outgoing passengers.

3.52 Total non-tax revenue decreased by $1.7 billion, or 19.4 percent, to $6.9 billion during the first half of 2019, compared with the same period in 2018.
This outturn reflects reduced transfers from statutory agencies.

Royalties collected by Central Government rose by $95.2 million, to $2.4 billion, as a result of higher gold declarations from one of the large-scale gold mining companies.

3.53 Total tax remissions for January to June 2019, amounted to $26 billion, or 23.9 percent of tax revenues, compared to $29.4 billion, or 29.2 percent, for the same period in 2018.
The decline in remissions resulted from decreases in: companies/businesses, by $1.5 billion; foreign funded projects, by $1.1 billion; churches/charitable organisations, by $608.6 million; Ministries or Government Departments, by $222.3 million; and Page 25 of 113 hospitals, by $62.9 million.

The categories that increased were diplomats, by $38.7 million, and public officials/officers, by $152 million.
Mid-Year Report 2019 Expenditure 3.54 The Central Government non- Non-Interest Current Expenditure interest recurrent expenditure budget for 2019 was $213.1 billion.

However, due to supplementary provisions of $4.4 billion to support Central Government activities, this was revised to $217.5 billion.
By the end of the first half of the year, the sum of n o i l l i B $ G 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - H1 2018 H1 2019 41.1 38.1 31.5 27.6 23.4 19.8 EMPLOYMENT COST OTHER GOODS AND TRANSFER PAYMENTS SERVICES Source: Ministry of Finance $93.1 billion, or 42.8 percent of the revised budgeted sum, was expended.

This represents an increase of 5.2 percent, or $4.6 billion, over the corresponding period for 2018.
3.55 In the category of employment costs, $31.5 billion, or 45 percent of the budget, was spent, reflecting an increase of $3.9 billion or 14.2 percent when compared with the same period in 2018.

This is attributed to new recruits, public service salary increases and the 2 percent increase to teachers applicable to their 2016 salaries.
3.56 Under the goods and services category, the sum of $23.4 billion, or 38.5 percent of the revised budget, was expended during the review period; this reflects an increase of $3.7 billion, or 18.5 percent, over the same period of 2018.
This increase is attributed to the early passage of Budget 2019, which facilitated an early commencement of the 2019 work programme, particularly in areas such as other expenses, purchase of materials and supplies, and maintenance of buildings, which posted increases of $1.5 billion, or 19.7 percent, $1 billion, or 32.1 percent, and $0.5 billion, or 31.1 percent, respectively.

3.57 Transfer payments amounted to $38.1 billion, or 44 percent of the revised budget, during the first half of 2019.
This represents a decrease of $3 billion, or 7.3 percent, when compared with the same period in 2018.

This variance is due to a one-off transfer to Page 26 of 113 Mid-Year Report 2019 GuySuCo, in early 2018, for severance pay.

This did not recur in 2019, and Subsidies and Contributions to Local Organisations fell as a result.
3.58 A total of $24.5 billion was Status of Local PSIP ($ million) expended on the PSIP during the first half No Action 324 of 2019, reflecting a 29.3 percent increase, Design 6,430 over the same period of 2018.

This Advertised 1,325 Eval.

2,695 represents an overall implementation rate Awaiting Award 4,872 of 35.4 percent of the budgeted allocation of $69.3 billion, the highest half-year Award Rollover implementation rate in the last 6 years.
13,554 11,277 Source: Ministry of Finance 3.59 Notwithstanding an increase in capital expenditure in the first half of 2019, Budget Agencies continue to face challenges with the implementation of the PSIP.
Some of the issues experienced are: lack of staff in critical positions in planning, procurement and contract management; tender related issues such PSIP Half-Year Analysis 30,000.000 25,000.000 20,000.000 15,000.000 10,000.000 5,000.000 ) 0 0 0 ' $ ( e r u t i d n e p x E - 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% e t a R n o i t a t n e m e l p m I 2014 2015 2016 2017 2018 2019 June Exp Imp.
Rate Source: Ministry of Finance as delays in completion of evaluation reports and in awards at various tender boards; and contractors’ capacity to complete projects in a timely manner.

As at the half-year, more than $28 billion of the local PSIP projects were awarded.
3.60 Government has put in place measures to improve the implementation of the 2019 PSIP which includes increasing the effectiveness of Agency Budget Committees (ABCs) to ensure that they are better able to plan, programme, implement and monitor capital interventions.

Page 27 of 113 3.61 The implementation rate of the foreign funded portfolio of investments was 39.3 percent of the budgeted sum of $27.7 billion, a substantial improvement over the Mid-Year Report 2019 corresponding period of 2018.
Public Enterprises 3.62 The performance of the PEs, during the first half of 2019, improved to a deficit of $3.3 billion, from a deficit of $9.4 billion in the corresponding period in 2018.

Total receipts were $58.6 billion, an increase of $3 billion or 5.3 percent, when compared with the same period in 2018.

At the end of the first half of 2019, operating expenses were $58 billion, a reduction of $3.6 billion or 6 percent, when compared with the same period in 2018.
Expenditure on wages and salaries fell by $2.6 billion, due in part to the reduction in the number of employees at GuySuCo.

Capital projects for some of the PEs were rescheduled to the second half of the year, mainly due to delays in procurement at GuyOil and GPL.

The PEs paid a total of $1.1 billion in corporation and property taxes, 43 percent higher than the $801.7 million in the first half of 2018.
The projected end of year position of the PEs for 2019 reflects a strengthening to a deficit of $10.9 billion, from a deficit of $13.3 billion at the time of Budget 2019.
Public Enterprises: Employment Cost as a Percentage of Total Expenditure 70% 60% 50% 40% 30% 20% 10% 0% GuySuCo GPL GNNL GRDB MARDS GPOC GuyOil GNSC GNPL NIS 2018 HY 2019 HY Source: Individual Public Enterprises Page 28 of 113 Mid-Year Report 2019 % Change 5.3% -5.9% 16.7% -64.6% -47.8% 2.0% 55.2% 0.0% 16.5% Public Enterprises - Total and Ratios: 2019 Half-Year Comparisons Total Receipts ($M) 48,749.4 54,245.1 55,591.6 58,558.0 Total Operating Expenses ($M) 38,127.8 55,679.3 61,658.4 58,031.8 2016 2017 2018 2019 Capital Investment ($M) Surplus/(Deficit) Local Government Rates and Taxes VAT Payments to GRA ($M) Corporation Tax ($M) Property Tax ($M) Dividends to Central Government ($M) 621.1 3,609.8 3,289.8 3,840.1 7,950.2 -5,044.1 -9,356.7 -3,313.8 26.9 73.6 148.5 100.0 73.6 38.4 1,113.5 1,135.3 1,129.9 1,528.9 117.2 1,000.0 128.2 0.0 646.7 155.0 0.0 1,004.0 0.0 138.5 -10.6% Total Contributions to Government ($M) 2,347.6 1,905.6 1,988.8 2,316.2 Total Operating Expenses/Total Receipts 78.2% 102.6% 110.9% 99.1% Guyana Sugar Corporation Source: Individual Public Enterprises 3.63 At the end of June 2019, GuySuCo recorded a cash surplus of $843 million, reflecting an improved performance, when compared to a deficit of $3.8 billion in the same period in 2018.
Total receipts were $9.3 billion, of which $3.9 billion was received from National Industrial and Commercial Investments Limited/Special Purpose Unit to fund GuySuCo’s operations and capital projects.

The Corporation exported 37,836.7 tonnes of sugar, of which 33,263 tonnes were sold to the EU market at a higher price than budgeted, resulting in an increase of $1.3 billion in export sales.
Current expenditure was $8.1 billion in the period under review, $2.7 billion lower than the corresponding period in 2018.

The Corporation’s capital expenditure was $334 million, 90.3 percent lower than the budgeted amount of $3.4 billion, primarily due to delays in funding for capital works.

The Corporation projects a deficit of $920 million at the end of 2019.
National Insurance Scheme 3.64 The NIS made adjustments to the following rates, effective 1 January 2019: - minimum Old Age and Invalidity Pensions, from $30,000 to $32,100 per month; Page 29 of 113 Mid-Year Report 2019 - - minimum Survivor’s Pension from, $15,000 to $16,050 per month funeral grant from $44,438 to $48,882.

Additionally, the Insurable Earnings Ceiling was increased, with effect from 1 February 2019, from $240,000 to $256,800 monthly, and from $55,385 to $59,962 weekly.
3.65 For the first half of 2019, the Scheme recorded an overall deficit of $748.4 million, compared with $715.6 million recorded in 2018.

Revenue collected for the first half of 2019 reached $11.9 billion, 90.8 percent of the budget, and 9.7 percent more than the corresponding period in 2018.

This improved position resulted from higher wage bands, on account of an increase in wages and salaries, as well as improved collection of outstanding contributions from delinquent employers.
Contributions from the self- employed were $492 million, 22 percent lower than the half-year target of $627.8 million, despite ongoing campaigns.

At the same time, the Scheme is working closely with the Guyana Revenue Authority (GRA) to update its list of self-employed persons.

Effective June 15, 2019, self-employed persons can make their contribution payments using GTT Mobile Money.
Expenditure for the period under review increased to $12.6 billion, from $11.5 billion at the end of June 2018, mainly due to an increase in benefit payments, which were 91.4 percent of total expenditure.

The latest forecast projects a deficit of $546.7 million, a worsening position from a budgeted surplus of $469.3 million.
This was mainly due to a shortfall of $1 billion or 4.5 percent in employee contributions, compared to the amount budgeted for at the half-year, as well as an increase of $449.3 million, or 1.9 percent in benefit payments.

Guyana Power and Light, Inc. 3.66 At the end of June 2019, GPL recorded a cash deficit of $4.2 billion, compared to a cash deficit of $3.7 billion in the corresponding period in 2018.
GPL’s receipts were $15.7 billion, a shortfall of $1.4 billion from the budgetary position, and $0.6 billion lower than the first half of 2018.

This was mainly due to a decline in sales collection, which was a result of a 61.5 percent collection rate for Government accounts, and actual billed sales falling below budget, by 3 percent.

In addition, there was reduced income from Page 30 of 113 Mid-Year Report 2019 investments in treasury bills as well as from services provided by the company.
These services included new connections, reconnection, tampering charges and service investigation.

Total current expenditure amounted to $16.4 billion, $925 million less than the same period in 2018.

Fuel costs were $1.4 billion more than budgeted, due to payments made in January 2019 for a fuel shipment received in December 2018, as well as fuel purchased and supplied to Skeldon Energy Inc (SEI).

While this was not catered for, GPL and SEI have a working capital agreement and the cost will be offset.
In the first half of 2019, fuel rebate to customers totalled $2.2 billion or 13.4 percent of local sales, a slight increase from the $2.1 billion or 13.2 percent of local sales in 2018.

3.67 The company was forced to reschedule some of its capital projects due to repairs to its submarine cables, which were damaged on two occasions in the month of June.
On June 2, GPL’s 69 kilovolts cable sustained damages, resulting in the unavailability of 14 megawatts of generation to the eastern half of the Demerara Berbice Interconnected System.

In another incident, GPL reported that a ship’s anchor damaged its submarine cable connecting the Kingston, Georgetown and Vreed-en-Hoop, West Bank Demerara locations.
Repairs to these cables were given high priority, and as a result, gross generation for the first half of 2019 reached 419,942 megawatts, 23,728 megawatts higher than the same period in 2018, also supported by increased demand.

The company anticipates closing the year with a deficit of $9.5 billion, compared to a deficit of $9.8 billion that was projected at the beginning of the year.
3.68 At the end of June 2019, technical and non-technical losses were 28.2 percent, compared to 29 in the same period in 2018.

The company will continue to upgrade its networks to aid in the reduction of electricity diversion through the installation of smart meters, and load balancing on low voltage and primary networks.

Guyana Rice Development Board 3.69 At the end of the first half of 2019, GRDB recorded a cash deficit of $253.3 million, $16.5 million higher than the end of June 2018.
The Board reported revenues of $282.6 Page 31 of 113 Mid-Year Report 2019 million, compared to $186.8 million in the same period in 2018, mainly due to receipt of outstanding sales commissions.

Total expenditures were $523.9 million, an increase of $104.1 million over the same period in 2018.

This resulted from higher employment costs and unbudgeted operational expenditure.
The latter included rehabilitation works on an office building at LBI Estate, and an advance payment for a seed cleaner, which amounted to 20.7 percent of total expenditure.

The Board now projects a deficit of $256.4 million at the end of the year, compared with a budgeted surplus of $27.7 million.

MARDS Rice Milling Complex 3.70 At the end of the first half of 2019, MARDS Rice Milling Complex recorded a cash surplus of $15.1 million, 32.1 percent lower than the position at the end of June 2018.
Total receipts were $33.1 million, $5.4 million less than the same period in 2018.

This was mainly on account of farmers not paying their land rent in a timely manner.

Sales of pesticides and weedicides amounted to 11 percent of revenue earned, compared with 7.7 percent for the same period in 2018.

On the other hand, total expenses increased in the period under review, to $17.9 million, from $16.2 million, due to higher spending on maintenance of property and purchase of pesticides.
At the end of 2019, the company anticipates an overall balance of $23.1 million, $9.5 million above the budgeted surplus of $13.6 million.

Guyana National Shipping Corporation 3.71 The Guyana National Shipping Corporation recorded a cash surplus of $9.9 million in the first half of 2019, higher than a cash surplus of $2.8 million in the same period in 2018.

Total receipts were $747.2 million, an increase of $67.1 million over the first half of 2018.
This resulted from an increase in freight charges, supported by the import/export of containers, receipts from GuySuCo, and income from container fees.

In addition, current expenditures rose by $68.7 million to $666.1 million in the first half of 2019, largely due to an expansion in the imports/exports of containers which resulted in the Corporation having to increase remittances to its principal Hapag-Lloyd AG.
The Page 32 of 113 Corporation expects a deficit of $9.4 million at the end of 2019, deteriorating from an initial cash surplus of $6.3 million.

Mid-Year Report 2019 Guyana National Printers Limited 3.72 In the first half of 2019, Guyana National Printers Limited recorded a deficit of $21.5 million, compared to a deficit of $55.2 million in the same period in 2018.
Total revenues reached $275.9 million, an increase of $75.5 million over the corresponding period in 2018, but 94.2 percent of the budgeted amount.

The latter resulted from several entities not honouring their debts in a timely manner.

Total expenditures for the period under review amounted to $293.8 million, an increase of $87.7 million, due to additional purchases of paper stock, as well as repairs and maintenance of the equipment used to produce exercise books.
This PE now anticipates a cash deficit of $80.5 million at the end of 2019, a worsening from a cash surplus of $40 million forecasted at the time of Budget 2019.

Guyana National Newspapers Limited 3.73 In the first half of 2019, Guyana National Newspapers Limited recorded an overall deficit of $15.8 million, compared to a surplus of $5.4 million in the same period in 2018.
The company recorded total receipts of $230.1 million, a shortfall of $22.4 million from the budgeted amount, and a decrease of $14.3 million, when compared with the first half of 2018.

This was largely as a result of a decrease of $45.5 million in local sales, as many readers now turn to other sources, including online, for news.

The company anticipates a deficit of $13.6 million at the end of 2019, compared to a cash surplus of $5 million previously projected in Budget 2019.
Guyana Oil Company Limited 3.74 At the end of the period under review, GuyOil recorded a cash surplus of $979.8 million, an improvement from a cash deficit of $811.5 million in the first half of 2018.

Page 33 of 113 Mid-Year Report 2019 Total receipts were $19.5 billion, $1.3 billion lower than the same period in 2018.

This was a direct result of lower sales volumes of fuel products, which fell by 62,461 barrels below the first half of 2018.
Mogas, Kerosene and Gasoil sales were 35,701 barrels, 4,632 barrels and 33,624 barrels lower than 2018, respectively.

In addition, given price competition and the contamination of a shipment of Super 95 Gasolene in February 2019, overall sales declined.

However, a market plan is in place to address this, and includes public outreaches, volume discounts and a dealers’ rebate programme.
3.75 Total expenditures declined, from $20.6 billion, to $17.3 billion, in the first half of 2019, due to reduced payments to creditors and rescheduling of capital projects.

The company has revised its sales target downwards.

However, this is not expected to affect the end of year performance, which is projected to reach a higher cash surplus of $262.2 million, compared with a projection of $178.8 million at the time of Budget 2019.
Guyana Post Office Corporation 3.76 In the period under review, Guyana Post Office Corporation recorded a cash surplus of $105.6 million, compared to a cash deficit of $43.1 million in the first half of 2018.

Over the same period, total receipts increased by $133.9 million to $690.9 million, on account of the approval of an additional 1 percent increase in agency fees, to 2 percent for the payment of NIS vouchers, Old Age and Government pensions, effective January 1, 2019.
Operating expenses decreased, from $582.4 million, at the end of June 2018, to $574 million, mainly due to a decline in “other” expenses.

It is expected that the Corporation will end the year with a surplus of $131.2 million, 54.5 percent higher than the budgeted surplus of $84.9 million.
Page 34 of 113 Mid-Year Report 2019 E. Debt Management Total Public Debt 3.77 Guyana’s public debt remains sustainable and faces a moderate risk of debt distress, primarily as a result of Government’s commitment to meeting its financing needs and payment obligations at the lowest possible cost, over the medium-to-long term, within prudent risk parameters.
At the end of June 2019, Guyana's stock of total public debt amounted to US$1,657.8 million, a marginal increase of 1.5 percent when compared with the 2018 half-year position of US$1,634 million.

Of this sum, external debt was US$1,274 million or 76.9 percent of total public debt, whilst domestic debt was US$383.8 million or 23.1 percent.
External debt as a share of total public debt increased by 0.3 percentage points, while the share of domestic debt declined, correspondingly, by 0.3 percent at June 2019.
A major contributory factor to the stability of total public debt level from the end of June 2018 to the end of June 2019 was the sizeable debt relief of US$50.7 Guyana's Total Public Debt 1,800 1,600 1,400 1,200 1,000 s n o i l l i m $ S U 800 600 400 200 - HY 2015 HY 2016 HY 2017 HY 2018 HY 2019 External Debt Domestic Debt Page 35 of 113 Guyana's total public debt was relatively stable to mid-2019, showing slight fluctuations over the review period.
from mid-2015 (1) The slight decline from half-year 2015 to half-year 2016 was as a result of the debt compensation arrangement to Venezuela inflows (PDVSA) and a decline in net principal (disbursements repayments) external creditors.

minus from Guyana's (2) However, total public debt increased marginally at half-year 2017 relative to the corresponding position in 2016.
This was due to increased disbursements from external creditors and the transfer of the Atlantic Hotel Incorporated (AHI) Loan to Republic Bank Limited (Trinidad and Tobago) to Central Government's books.

(3) Between the period half-year 2017 and half-year 2018, total public debt decreased by US$3 million, primarily as a result of contraction in domestic debt.
(4) Finally, total public debt stock rose by US$23.8 million, from US$1,634 million at half-year 2018, to US$1,657.8 million at half-year 2019, mainly as a result of increased disbursements, especially from bilateral creditors such as the Export- Import Bank of China.

Source: Ministry of Finance Mid-Year Report 2019 million, granted by Kuwait under a Bilateral Debt Settlement Agreement signed in March 2019.
The remaining debt to Kuwait, of US$24.9 million, will be settled through a combination of cash payments and a debt swap arrangement.

Without this debt relief, total public debt would have increased by 4.5 percent, instead of the actual growth of 1.5 percent.

Notwithstanding, efforts to proactively engage other bilateral non-Paris Club creditors in debt settlement negotiations are ongoing, with a view to alleviating the fiscal burden imposed by arrears that have been accumulating at high interest rates.
Total Public Debt Service 3.78 In the first half of 2019, total public debt service payments increased by 17.3 percent, from US$44.3 million in the first half of 2018, to US$52 million, mainly as a result of a 96.9 percent rise in domestic debt service payments.

For the first half of 2019, total public debt service as a share of government revenues was 9.4 percent, compared to 8.5 percent for the first half of 2018.
External debt service payments, for the first half of 2019, accounted for 81.2 percent of total public debt service payments, a 7.7 percentage point decrease from the corresponding period in 2018.
Total Public Debt Service s n o i l l i m $ S U n i e c i v r e S t b e D 40 35 30 25 20 15 10 5 - HY 2015 HY 2016 HY 2017 Time Period HY 2018 HY 2019 External Principal Repayment Domestic Principal Repayment External Interest Payment Domestic Interest Payment Source: Ministry of Finance Page 36 of 113 Mid-Year Report 2019 External Public Debt 3.79 At the end of the first half of 2019, external public debt was US$1,274 million, 1.8 percent higher than the 2018 half-year position of US$1,251.9 million.
This moderate growth was primarily due to a 95.9 percent increase in debt to the World Bank – International Development Association, to US$78.4 million at half-year 2019, mainly attributable to disbursements under the Bank’s Financial and Fiscal Stability Project.

Additionally, debt to Guyana’s largest creditor, the Inter-American Development Bank (IDB), grew by 3.5 percent, from US$505.5 million to US$523.2 million over the corresponding period.
3.80 At half-year 2019 the share of multilateral debt grew to 61.9 percent, from 58.4 percent at half-year 2018, while the share of bilateral debt fell to 35.4 percent, from 38.8 percent, mainly due to a debt write-off of US$50.7 million from Kuwait, in March 2019.

External Disbursements 3.81 For the first half of 2019, external disbursements totalled US$35.2 million, 3.9 percent higher than the US$33.9 million disbursed in the first half of 2018.
This was mainly attributable to a 52.5 percent increase in disbursements from bilateral creditors, from US$14.3 million in first-half External Disbursements in HY 2018 42.1% 57.9% 2018 to US$21.8 million during first-half 2019, Multilateral Bilateral Source: Ministry of Finance primarily from China EXIM Bank under the National External Disbursements in HY 2019 Broadband and Guyana East Coast Demerara Road Improvement projects.
Notably, multilateral 38.2% disbursements for the first half of 2019 declined by 31.4 percent, when compared to the US$19.6 million 61.8% disbursed during the same period in 2018.

This reduction resulted mainly from a 42.2 percent Multilateral Bilateral Source: Ministry of Finance Page 37 of 113 Mid-Year Report 2019 decline in disbursements from the IDB, which accounted for the largest share of multilateral disbursements for both periods under consideration.
3.82 Bilateral creditors accounted for 61.8 percent of disbursements in the first half of 2019, while the remainder was attributable to multilateral creditors.

Conversely, in the first half of 2018, 57.9 percent and 42.1 percent of disbursements were attributed to multilateral and bilateral creditors, respectively.

This reversal in the distribution of disbursements across the two periods reflects financing from China, coupled with a decline in disbursements from multilateral creditors.
Disbursements by Creditor (in thousands of US dollars) s t n e m e s r u b s i D 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - B i l a t e r a l s M u l t i l a t e r a l s India Eximbank China Eximbank B i l a t e r a l s M u l t i l a t e r a l s IFAD CDB CDF IDA IDB HY 2018 HY 2019 Time Periods Source: Ministry of Finance Page 38 of 113 Mid-Year Report 2019 External Debt in Arrears 3.83 Guyana’s debt to its bilateral Non-Paris Club and commercial creditors at the end of June 2019 totalled US$87.2 million, representing a 47.2 percent decline from the balance of US$165 million at the same point in 2018.
This significant reduction, to the tune of US$50.7 million, stemmed from the debt relief received from Kuwait, in March 2019.
External Debt in Arrears (all figures in thousands of US dollars) HY 2018 HY 2019 Principal in Arrears Interest in Arrears Total Arrears Principal in Arrears Interest in Arrears Total Arrears Change Grand Total 49,270.7 115,704.5 164,975.2 39,350.6 47,801.4 87,152.0 -47.2% Bilateral Creditors Argentina (BICE) Kuwait (KIA) Libya Serbia (Yugo-imports SDPR) United Arab Emirates 33,251.4 113,995.4 147,246.8 23,343.8 46,142.8 69,486.6 -52.8% 4,515.4 9,907.5 15,000.0 587.7 3,240.8 10,871.4 68,768.5 28,778.1 781.0 4,796.3 15,386.8 4,515.4 11,210.1 15,725.4 2.2% 78,676.0 0.0 0.0 0.0 -100.0% 43,778.1 15,000.0 29,160.0 44,160.0 0.9% 1,368.7 587.7 804.8 1,392.6 8,037.1 3,240.8 4,967.9 8,208.7 1.7% 2.1% Private Creditors 16,019.4 1,709.1 17,728.4 16,006.7 1,658.7 17,665.4 -0.4% Ruston Bucyrus (Gov’t Bond) 28.1 External Payments Deposit Scheme 12,538.5 1.4 0.0 29.5 27.1 12,538.5 12,538.5 1.4 0.0 12,538.5 28.4 -3.6% UK (Barclays Bank) 3,130.0 309.6 3,439.6 3,130.0 309.6 3,439.6 0.0% 0.0% UK (Lloyds Bank Overdraft) 322.7 1,398.1 1,720.8 311.1 1,347.7 1,658.8 -3.6% Source: Ministry of Finance External Public Debt Service 3.84 External debt service (principal and interest) payments increased by 7.3 percent, from US$39.4 million in the first half of 2018, to US$42.2 million during the same period for 2019, mainly due to the commencement of principal and interest payments to the China EXIM Bank under the Cheddi Jagan International Airport (CJIA) Extension Project, India EXIM Bank under the East Bank-East Coast Road Linkage
 Project, and Page 39 of 113 Mid-Year Report 2019 Kuwait under the Bilateral Debt Settlement Agreement signed in March 2019.
The growth in bilateral payments seen across the two periods occurred largely on account of the commencement of repayments to Kuwait, from May 2019.

Domestic Public Debt Stock 3.85 The stock of domestic public debt increased by a marginal 0.4 percent, from $79.7 billion (or US$382.1 million) at the end of the first half of 2018, to $80 billion (or US$383.8 million) as at June 30, 2019.
The stability of domestic public debt was reflective of a modest 0.9 percent growth in the stock of treasury bills, to $71.7 billion (or US$344 million), over the review period.

The stock of treasury bills is expected to remain relatively stable to the end of 2019, in spite of a projected increase in issuance of 364-day treasury bills (G-series) for fiscal purposes.

It is expected that there would be no significant changes in the stock of 182-day and 91-day treasury bills in the second half of 2019.
Notably, except for the G3 Series treasury bills for the face value of $2.5 billion, that were not reissued in July 2019, G-series treasury bills that mature during the second half of 2019 would be reissued.

Domestic Public Debt Service 3.86 On the other hand, domestic debt service increased by 96.9 percent, from approximately $1 billion (or US$5 million) in the first half of 2018, to $2 billion (or US$9.8 million) in the first half of 2019.
This increase was mainly due to principal repayment of $1.3 billion (or US$6.2 million) made in May 2019 for the 364-day G1 Series treasury bills, which were not reissued since there was no request for funding at the time of redemption.
Government Guarantee 3.87 In the first half of 2019, the National Industrial and Commercial Investments Limited (NICIL) commenced payments, totalling $785.3 million, under the Government- Page 40 of 113 Mid-Year Report 2019 guaranteed $30 billion bond issued to finance specific expenditures relating to the operations of the GuySuCo.

At the end of the first half of 2018, $16.5 billion of $30 billion bond was accessed.
A further $1.1 billion was drawn down in July 2018, bringing the total sum issued to $17.6 billion.

As at June 30, 2019, there have been no further issuances.

Page 41 of 113 Mid-Year Report 2019 F. Key Sector Highlights Education 3.88 Education remains a national priority, as evidenced by continuous increases in budgetary allocations to ensure that the quality of education delivered across the country can drive national development.
During the first half of this year, a total of $21.7 billion was expended, accounting for 41.5 percent of the allocated sum to the sector.

This represents an increase of 21.6 percent over 2018.

During the review period, 44.6 percent of the allocated recurrent expenditure and 20.5 percent of the allocated capital expenditure were spent.

Of note, the Ministry of Education completed a draft of the Education Sector Strategic Plan, in the first half of 2019.
In June, stakeholder consultations commenced in Regions 2 and 8.

Consultations in the remaining Regions are expected to be completed before the end of the year, following which, the Plan will be finalised.

This will be complemented by a performance expenditure review of the sector that will help to guide the changes, in keeping with global best practices, necessary to ensure that every child is equipped to contribute to Guyana’s transformation and development.
3.89 School enrolment and attendance continue to affect the learning outcomes of a large proportion of the school-aged population.

Data from 2016 indicate that less than 80 percent of this segment of the population were enrolled in school, and attendance rates were approximately 75 percent.

In an effort to improve enrolment and attendance, the school feeding programme was expanded, in the first half of 2019, with the sum of $1.6 billion of the budgeted $3.6 billion spent.
The community-based school feeding component provides meals to 214 schools in Regions 1, 2, 7, 8 and 9, to the benefit of over 26,000 children.

An additional 935 students now benefit from expansion of the programme this year.

Further, the breakfast component provides for approximately 13,539 students in 118 schools across Regions 3 and 4, and Georgetown.
Under this component, 851 beneficiaries in 9 additional schools are expected to be added in Region 5 – Ithaca, Blairmont, Bath, Liberty Hall, Shieldstown, and Rosignol – and 435 Page 42 of 113 Mid-Year Report 2019 beneficiaries in 5 schools in Region 6 – Leeds, Mount Sinai and New Amsterdam.

This is expected to be implemented in the second half of the year.

3.90 Continuous assessment of students is key to identifying their progress.
Results from assessments of Mathematics and English at Grades 2, 4 and 6, continue to hover around low pass rates across the country, signalling the need for emergency stopgap measures while longer-term solutions are developed.6 To this end, 400 mathematics kits were available for distribution to primary schools within the riverain and hinterland areas, of which 217 kits were distributed to Regions 2, 3, 7, 8 and 10.

The remaining 183 kits will be uplifted by the other Regions in the second half of 2019.
An additional 50 mathematics kits together with 720 literacy kits and 400 robotic kits are also expected to be procured.

3.91 A key constraint to improving student outcomes is the availability of qualified teachers.

There were 3,781 teachers delivering primary education during the 2017/2018 academic year.

Of this number, 78 percent were trained, similar to the previous academic year, and the pupil to trained teacher ratio remained elevated at 21:1.
At the secondary level, there were 3,785 teachers, of which 72 percent were trained, with a pupil to trained teacher ratio of 25:1.

However, these numbers disguise the disparities across regions, particularly in hinterland areas where, for example, in 2018, Region 8 has 23.9 percent trained teachers compared to 82 percent in Region 4.
It is critical that teachers are technically competent and appropriately skilled at communication, classroom management and appropriate discipline techniques, to create a positive learning environment.

To this end, teachers continued to develop skills through best practices via continuing education and classroom experience.
Of the 1,111 teachers that are in training at the Cyril Potter College of Education (CPCE), 75 are expected to graduate this year ‘equipped’ to teach at the nursery level, 134 at the primary level and 156 at the secondary level.

Additionally, draft standards for the teaching profession are currently being 6 See Feature Box for further details on these results.

Page 43 of 113 Mid-Year Report 2019 reviewed by CARICOM and will guide the national approach to improving the quality of teachers.
3.92 To bridge the divide between the delivery of education between hinterland and coastal regions, smart classrooms continue to be equipped across the country.

Both Paramakatoi and Santa Rosa Secondary Schools have received smart boards and accompanying equipment, which have been operationalised.
Of note, during the review period, IT labs were completed at Windsor Forrest, Helena, Paradise, Belladrum, Wismar Hill and New Amsterdam primary schools, increasing the number of functional labs at the primary level to 50.

3.93 To complement the aforementioned interventions to improve the delivery of quality education, efforts have advanced in creating learning environments in which students are motivated and able to learn.
In 2017, approximately 62 percent of the nation’s schools and teachers’ accommodations met minimum standards.

Of the $5.4 billion allocated for the construction, rehabilitation, extension and maintenance of educational facilities, countrywide, $1.5 billion was spent at the half-year.
Thus far, works advanced on secondary schools at Wismar/Christianburg, Mahaicony, and Beladrum; primary schools at Kako, Imbaimadai, Kildonan, and Leeds; and, nursery schools at White Water, Kuru Kuru, Onderneeming, and Bamia/Amelia’s Ward.

Further, works commenced on the rehabilitation and upgrading of 4 facilities under the University of Guyana’s (UG) programme.
Recognising the need to improve educational outcome across all levels, Government will continue to invest in improving learning environments, teacher training and programme content.

Page 44 of 113 Mid-Year Report 2019 FEATURE: Prioritising the Performance Review of the Education Sector7 The role of education in the determination of the pace of economic diversification has long been known.
A 2008 study by Eric A. Hanushek and Ludger Woessmann highlighted empirical results displaying the importance of both minimal (basic) and high-level skills, the complementarity of skills and the quality of economic institutions, and the robustness of the relationship between skills and growth.

International comparisons incorporating expanded data on cognitive skills reveal much larger skill deficits in developing countries than generally derived from just school enrolment and attainment.
The magnitude of change needed makes clear that closing the economic gap with developed countries will require major structural changes in schooling institutions, including in Guyana’s case.

The need to accelerate improving Guyana’s public education sector is further intensified in light of the rapid growth of the economy anticipated with oil production expected to commence in 2020.
In order to mitigate the perils of the resource curse, the education system must be able to: 1) effectively deliver a variety of programmes and skills, with special attention on science, technology and innovation, into the economy to allow for diversification and, 2) ensure that all children are strongly supported to reach their full potential and become highly productive contributors to the economy, both in the private and public sectors.
Government recognises the limitations of the current system to meet these demands.

This feature assesses public education expenditure, teacher qualification and the performance of students at the Grades 2, 4 and 6 assessments.
Spending in Education Education as a Share of GDP and Budget 2006-2019 15.0 10.0 5.0 0.0 Share of GDP Share of Budget The trends in expenditure on education as a percent of budget and GDP in last 14 years have increased gradually from 14.9 percent to 17.4 percent; 5 percent to 6.3 percent, respectively.

Results-based budgeting best practice requires that expenditures, even more so, increases in expenditure should be demonstrably linked to the delivery of particular outcome changes.
Government has continually been cognisant of the need to ensure that value for money is delivered.

However, given the varying performances discussed below, a public expenditure (diagnostic) review in the education sector is necessitated, for which support is being sought.

In the category of employment costs, teachers have consistently received salary increases from 2006 to 2018.

Over the last 13 years, teachers’ salary increase has moved from 5 percent to 8 percent across all salary scales.
Teachers are the cornerstone of education delivery and student performance must be considered in conjunction with teachers’ performance, such that impediments can be remedied and appropriate, targeted, support can be provided.

Therefore, future negotiations for wage increases must explicitly consider appropriate performance benchmarks.
Teachers Salary Increase (Percentage) 2006-2018 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 5 9 5 10-24* 5 8 5 5 5 5 8 -12 6 -8 8 * between 10 and 24 percent according to salary scale In 2015, it was 5 percent plus $5000, 2016-2018 according to Memorandum of understanding between MoE and the Guyana Teachers’ Union Source: Budget Speeches 2005 to 2019 7 Charts and tables in this Feature are based on information gathered by the Ministry of Education.
Page 45 of 113 Teacher Training and Capacity Building for the Education Sector Mid-Year Report 2019 11.27% Male Male 33.33% Region 1 Region 2 Female Female Regions 2017-2018 2013-2014 % Trained Teachers Trained Teachers: Primary Education Generally, the proportion of trained teachers is near or over 70 percent at all levels – nursery, 69, primary, 77, and secondary, 71 – in the 2017 to 2018 academic year.
The traditional Trained Teachers’ Certificate Programme has been using 45 percent as the pass mark for several decades.

However, the criteria for the Levels of attainment for a Distinction, Credit and Pass differ among courses.

Further investigation of professional training of teachers delivered by the CPCE and UG is warranted.

In addition, recognising that teachers and school supervision need urgent review, a new teacher appraisal instrument will be implemented.
In addition, a standardised classroom observation protocol will be developed, along with other initiatives, all emanating from the new Education Sector Strategic Plan.

The Government of Finland, responsible for one of the top ranked education systems in the world, has highlighted the paramountcy of ensuring strong and competent teachers.

Finland’s education system requires that all teachers hold Master’s Degrees, at minimum.
Becoming a teacher is highly regarded in the Finnish culture and acceptance into teacher programmes is highly competitive.
Region 10 Region 8 Region 4 Region 6 Region 9 Region 3 Region 5 Region 7 National Since 2011, under the umbrella of the National Monitoring and Evaluation Strategy and Action Plan, Government has trained approximately 260 senior technical officers across the education sector in the key concepts of M&E, in accordance with the International Programme for Development Evaluation Training methodology.
The intention is for participants to utilise the concepts to improving planning, budgeting, implementation and monitoring of their respective programmes.

There will be continuous training across the various levels of the education sector to ensure consistency in delivery, understanding and application of M&E concepts nationally, with the next training session focussed on education scheduled for August 2019.
This also supports the eminence of the data challenges, identified in the preparation of Guyana’s first Voluntary National Review, for which data clinics will be held.

Other M&E strengthening for the education sector has included the conduct of clinical sessions, targeting various aspects of education delivery.

One critical area assessed was book distribution, which sought to address the shortage of text and exercise books across the country.
As part of the process, a theory of change and performance measurement framework was developed by the Book Distribution Unit.

This resulted in the shift of focus from transporting books out of the Unit, to ensuring that each child receives their required quota of books.

Recommendations implemented towards this included, revision of the distribution plan and schedule for books, as well as the system of monitoring receipt of books, with greater focus on schools submitting their issue vouchers.
Student Performance Students Performance in National Grade 6 Assessment(NGSA) % Pass early recognises is paramount that childhood Government education in building a strong foundation that will allow a child to participate meaningfully and learn more effectively as they progress through their school years.

Grade 2 holds the final early childhood level assessment, and student performance for the past 3 years is displayed in Table 1.
Government is significantly concerned that, in 2018, more than half of students are not passing 50 0 Mathematics English Language Social Studies Science 2015 2016 2017 2018 2019 Page 46 of 113 Mid-Year Report 2019 English and only about half are passing Mathematics.

Such performance is inimical to a students’ growth and ability to learn as they progress to the upper grades; it is also untenable to building a strong and productive society.
The former ‘snowball’ effect is experienced at the Grade 4 level where over 60 percent of students are not passing English and over 55 percent not passing Math (see Table 2 for Grade 4 results).

At the Grade 6 level, performance in Mathematics, Social Studies and Science remain low, in 2019, ranging between 36 to 41 percent of students passing, though English is slightly better with 56 percent passing.
60 80 increase Mathematics ( %) Students Performance in CSEC Examinations (Grade 1-3) At the secondary-level CSEC examinations; students achieving Grades 1-3 in Mathematics and English Language, moved from 40 percent to 45 percent and 46 percent to 63 percent respectively.

Of note, there has been an in matriculation by 11 percentage points over the past five years (2014- 2018) at the secondary level.

However, this still represents less than half of students attaining Grades 1-3 in Mathematics.
The authorities are yet to disaggregate this data between scores.

With regard to logic and mathematics, which underpins basic reasoning skills, just 35 Mathematics Specialist/Master trainers at the Secondary level that offer support to teachers at this level, however there are no Specialist Mathematics teachers at the Primary level.

The deficit of specialist teachers in mathematics and other subject areas needs to be urgently addressed.
there are currently English Language (%) 2018 2016 2014 2015 2017 40 20 0 If improved livelihoods, economic growth and development are to be effectively and equitably realised, they must be underpinned by a citizenry with a strong educational background, or Guyana may succumb to increasing disparities, wastage of public funds, the resource curse, including a decline in competitiveness and economic stability, worsening crime and social tensions, among others.
Increased spending in the education sector and the growing the number of ‘trained’ teachers has been yielding mixed results.

To make the matter more concerning, this is just based on an analysis of “passes”, i.e.

the minimum score required to progress.

The majority of students should attain not just the bare minimum, but thrive with high passes.
As such, the education sector, in the preparation of its next Strategic Plan, should address the issues highlighted in this feature, including the re-examination of teacher performance and exploration of innovative strategies for education delivery, as maintaining the status quo is clearly untenable and restrictive to Guyana’s development.
Table 1: Grade 2 Performance in English and Mathematics, 2015-2018 Regions All Regions Georgetown Private Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 English: % not passing Grade 2 Maths: % not passing Grade Page 47 of 113 Table 2: Grade 4 Performance: English and Mathematics, 2015-2018 Mid-Year Report 2019 English: % not passing Grade 4 Maths: % not passing Grade Regions All Regions Georgetown Private Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Health 3.94 The Government continued to make strides to expand and improve the delivery of health services to all citizens.
A sum of $16.7 billion of the $35.9 billion budgeted for the health sector was expended in the first half of 2019.

Delays in procurement continued to be a challenge within the Ministry of Public Health, and, at the end of the first half, only $1 billion of the $4.4 billion allocated towards capital investments was expended.

However, this situation is expected to improve considerably in the second half of 2019, since all infrastructure-related projects have been advertised.
3.95 During the first half of 2019, Government spent $3.8 billion, or 49 percent, of the $7.8 billion budgeted for the procurement of drugs and medical supplies.

This represented a 22.7 percent increase over the same period in 2018.

In addition, a total of $713.9 million was expended on the maintenance and construction of buildings for the health sector, as Government continued its drive to upgrade and modernise healthcare facilities nationally.
Of that amount, the sum of $455.3 million was spent on capital infrastructure works, of which $40.6 million was expended on the upgrade of the doctors’ Page 48 of 113 Mid-Year Report 2019 quarters in Georgetown, Lethem, Kaikan, Leguan, Kamarang, New Amsterdam, Ituni, Wiruni and Mabaruma.

3.96 The construction of a new laboratory for the Food and Drug Analyst Department was advanced.

The scope of this project has been broadened to include an administration complex.
Selection of a suitably qualified consultant to supervise the project is anticipated to be completed by the end of the year, with final designs and construction expected to commence soon thereafter.

3.97 During the first half of 2019, Government both increased and improved temperature-controlled storage facilities.

A new, state-of-the-art drug storage bond for the Central Supplies Unit at Kingston, costing almost $540 million, was commissioned.
At the same time, the extension of the bond for the Material Management Unit at Diamond was completed at a cost of $116 million.

These facilities have increased the floor space for storage by over 1,900 square feet and will be central in the distribution network for drugs and medical supplies.

3.98 Drugs and medical supplies make up approximately 21.7 percent of the national health sector budget.
Persistent issues of drug shortages have led to a review of the essential medicines’ list, in order to improve quantification of the demand for drugs and medical supplies at healthcare facilities across Guyana.

This exercise has almost been completed and will be used to better inform Government on purchases of drugs and medical supplies.
In addition to increasing the storage space, the distribution network for these supplies has been strengthened with the recruitment of 9 pharmacy support personnel to coordinate and facilitate the distribution to the Regions.
3.99 As part of the upgrading and modernising of health facilities nationwide, Government has expended about $285 million of the budgeted $760.7 million on the procurement of medical equipment across the country, including the procurement of incubators, laser therapy machines, foetal Dopplers, dental x-ray machines, infant warmers and anaesthetic machines.
Page 49 of 113 Mid-Year Report 2019 3.100 Improving maternal health is an ongoing priority and, to this end, decentralised training was conducted for Community Health Workers (CHW) in regions that were identified as being more susceptible to maternal deaths.

At the half-year, 19 CHWs had completed training in Region 1.

Further, 48 students in Region 6 commenced training in July, with an additional 25 students in Regions 7 and 8 slated for training in August.
Additionally, the refurbishment of the maternal waiting home in Lethem was completed in the first half of 2019, and a new home in Long Creek is under construction, with completion expected before the end of the year.

3.101 Non-communicable diseases (NCDs), such as hypertension and diabetes, continue to afflict a significant proportion of the population, thus placing a heavy burden on healthcare facilities.
In a bid to raise awareness, and offer treatment and guidance to persons suffering from NCDs, Government has put in place a workplace screening programme in 2019.

The services offered to work sites were Visual Inspection with Acetic Acid sensitisation and screening for cervical cancer, screening for diabetes, blood pressure and blood sugar testing.

Of the 50 work sites planned for 2019, 27 of them, in both the public and private sectors, benefitted from these services in the first half of the year.
Additionally, Government has conducted a study on sugar-sweetened beverages, the increasing consumption of which has been linked to the higher incidence of NCDs.

A paper has been developed and will be circulated widely later this year.

3.102 Government continues to combat existing and emerging threats to the nation’s health such as the multi-drug resistant (MDR) strain of tuberculosis.
While the incidence of this disease has been on the rise, the rate of increase is lower than that projected by the World Health Organisation (WHO).

Based on historical declarations, the WHO has projected that there would be 30 cases of MDR-tuberculosis in Guyana in 2019.

However, to date, there have been only 11 such cases revealed through screenings.

Government will continue to fight the disease through its Directly Observed Treatment Short course (DOTS) programme.
In the first half of 2019, the DOTS programme was bolstered by increased personnel, training of staff, and the purchase of a new vehicle to facilitate the mobile unit outreaches.

Page 50 of 113 Mid-Year Report 2019 3.103 In the first half of 2019, the incidence of HIV grew to 142 cases per 100,000 persons, significantly higher than the 2018 rate of 117 per 100,000 persons.

Testing for HIV remains one of the most important activities in the fight against the virus.
To this end, and in its pursuit to achieve the 90/90/90 Treat All Policy, Government has committed to increasing HIV testing and, with the help of NGOs, increasing access to testing of vulnerable groups.

In addition to testing, the package of care that will be on offer through the collaboration with NGOs includes sensitisation, the distribution of condoms, and linking persons to care and treatment sites.

Government will also be piloting two new initiatives in August as countermeasures against HIV.
The first of them is the establishment of a public-private partnership with doctors within the private sector to whom patients will be referred for treatment.

While the cost of treatment will remain free, the patient will be required to cover the doctor’s consultation fee.

Secondly, Government will be introducing Pre-Exposure Prophylaxis, which is a course of HIV drugs taken as a pre-emptive measure against the spread of disease, particularly targeted at vulnerable groups.
3.104 Suicide continued to be a cause for alarm, despite a decline in incidence at the end of May 2019, falling by 18, from 58, when compared with same period of the previous year.

To combat this, Government continues to train primary healthcare professionals, such as physicians, medexes and community health workers, in the early diagnosis and management of mental health illnesses that do not require hospitalisation.

In the first half of 2019, a total of 166 persons were trained.
Additionally, 11 workshops on suicide prevention have been held in Regions 2, 3, 4, 5 and 6, and 6 schools have been visited for suicide prevention and mental health talks, including St. John’s College, Lodge Secondary School and Starters Nursery.

A number of other schools have been identified for visits in the second half of 2019.
3.105 Work on the design of a modern trauma centre at the Guyana Public Hospital Corporation, will progress in the third quarter of 2019 when expressions of interest are evaluated.

The design for the trauma centre will include an isolation area, a Page 51 of 113 decontamination area, critical bays, additional operating suites, increased intensive care capacity and additional inpatient bed capacity.
Mid-Year Report 2019 Water 3.106 Of the $2.9 billion allocated for improving potable water supply and distribution systems, in 2019, the Government expended a sum of $1.4 billion during the first half.

To ensure that investments in water result in the efficient management of this valuable resource, the Guyana Water Incorporated installed 3,952 meters in 1,271 villages across Regions 2, 3, 4, 5, 6, 7 and 10, resulting in the reduction of non-revenue water of approximately 8,640 cubic metres each month.
Additionally, works are progressing on water treatment plants at Uitvlugt, Diamond and Sheet Anchor; these are expected to be completed by the end of 2019, and benefit more than 50,000 households.

Under the New Amsterdam Water Treatment Plant Project, 60 percent of the metering activities has been completed.

The subsequent reduction in non-revenue water will allow for improved delivery of water to residents of Sandvoort by increasing water pressure in the mains.
3.107 To expand access to potable water, a new well was constructed at Vergenoegen, benefitting over 4,000 households.

Works on wells at Pouderoyen and Westminster are expected to be completed by August 2019.

Together, these wells will increase the capacity of the 3 water treatment plants in Region 3, thereby improving service delivery to residents.

In addition, works will commence on new wells at Farm, Lusignan and Fyrish, in the second half of 2019, after the acquisition of a new drilling rig.
The expansion of water supply systems on the East Bank Essequibo corridor and Ruby is expected to be completed by the end of 2019 and will benefit approximately 1,350 persons and 500 persons, respectively.

Works will commence, in the second half, on the expansion of the water supply system at Parika.
New pumps were installed at water treatment plants in Linden – Watooka, Amelia’s Ward and Wisroc – and works commenced to upgrade the water distribution network and transmission mains at Orealla, Ithaca and Kingelly, all of which are expected to be completed by December 2019.

Page 52 of 113 Mid-Year Report 2019 3.108 Expansion of the current 40 percent access to potable water by residents in the hinterland continued to be a priority of Government.
To that end, in Region 1, a new well was completed, in April, at Port Kaituma, giving 50 percent of the community, or approximately 1,300 persons, access to potable water.

Additionally, refurbishment works, including upgrades to parts of the distribution system and the cleaning of springs, were completed at Matthew’s Ridge, in March, resulting in the improvement in the quality and supply of water.
In Region 8, works were completed on a new well at Campbelltown and a new water supply distribution system was activated at Paramakatoi, providing 90 percent of the community, or approximately 1,142 persons, with access to potable water for the first time.

The activation of a new well at Sand Creek was also completed, resulting in the continuous supply of potable water to 90 percent of the community, compared to 20 percent prior to this intervention.
In Region 9, works on a well at St. Ignatius were completed, resulting in 185 persons now having access for the first time.

New wells were also completed at Aishalton, Annai, Karasabai, Kaicumbay, Yupukari, Nappi, Hiowa, and Aranaputa, all of which will be operationalised by the end of August 2019.

Sanitation 3.109 In the first half of 2019, Government expended the sum of $155.4 million of the $841 million budgeted for the national solid waste programme.
The construction of Cell 2 at Haags Bosch Sanitary Landfill site, which is urgently needed, given that Cell 1 is approximately 95 percent filled, is expected to commence in the second half of 2019, with procurement in progress.

Additionally, the upgrading of internal access roads to this site commenced in July and, already, 40 percent has been completed.
3.110 The environmental impact assessments and designs for sanitation operations at Bartica, Linden and Mahdia will be undertaken, once the terms of reference and procurement processes are completed.

The development of the terms of reference for the assessment is expected to be finalised soon by a joint committee comprising the Ministry of Communities and the Environmental Protection Agency.
Further, the draft Solid Waste Management Bill is under internal review, and public consultations will be held soon.

Page 53 of 113 Mid-Year Report 2019 3.111 In the first half of 2019, a total of 120 children in 8 primary schools in Region 4 were engaged in programmes on good sanitation practices, as part of the Green Generation Guyana (3G) Sanitation Campaign.

Further, 9 schools in Regions 4 and 6 also participated in hygiene engagements, which targeted 1,271 children.
In the second half of the year, the hand rubbing/washing component of the 3G Sanitation Campaign will be done in Regions 1 and 2, targeting approximately 2,000 students in each region.

Housing 3.112 In the first half of 2019, the Government expended $375.3 million of the $1.7 billion allocated to the housing sector.

Of the $780 million targeted for consolidation efforts in housing schemes across the country, about $90 million was expended as of June 2019.
The Central Housing and Planning Authority (CHPA) commenced road upgrades in 12 areas in Regions 3, 4, 5 and 6, totalling 9 kilometres.

These will be completed by the end of 2019, to the benefit of approximately 2,000 persons in each housing area.

It is expected that 100 LED street lamps will be installed in several housing areas, in the second half of the year, to improve night time visibility and security.
These areas include La Parfaite Harmonie, Cacique Road, Little to Great Diamond, Enmore/Haslington, Tract A Coldingen, Section D Non Pareil, Block 15A/15B Bladen/Vigilance, Belfield, Hope/Dochfour, Strathspey, Bell West, Tuschen, Zeelugt, Ordnance Fortlands, Kilcoy Chesney, Burma, Amelia’s Ward and Wisroc 1B.
Works are also expected to commence, in the second half, on the upgrading of recreational facilities at Prospect and Amelia’s Ward, allowing for the hosting of community events, including sporting activities, towards the promotion of cohesive communities.

3.113 Of the $750 million allocated towards the Adequate Housing and Urban Accessibility Programme, the sum of $126.1 million was expended in the first half of 2019.
During this period, works commenced on the upgrading of roads in the Sophia housing area, with 7 kilometres expected to be upgraded by the end of 2019.

In the second half of the year, a total of 350 Sophia households will benefit from the distribution of 300 home improvement subsidies, to the value of $170 million, and the construction of 50 core Page 54 of 113 Mid-Year Report 2019 homes.
These disbursements are anticipated to commence after applications are evaluated and beneficiaries selected for the 2019 cycle.

The Sophia housing area will also benefit from the construction of approximately 2.1 kilometres of sidewalks, in the second half of the year.

3.114 While the upgrade to schemes across the country is expected to increase the occupancy of these areas, there still remains a backlog of housing applications that is being urgently addressed.
During the first half of 2019, the CHPA distributed a total of 541 house lots in Regions 2, 3, 4, 5 and 9, which represents 54.1 percent of the target for 2019.
The areas in which these house lots were distributed included Onderneeming, Onderneeming Phase II, Onderneeming Phase III, Recht Door Zee, Zeelugt (Phase I), Eccles, Providence Gardens, Plot B Herstelling, Perseverance, Prospect, Providence (115), Parcel 123 Providence, Section C Block X Golden Grove, Section A Block X Great Diamond, Mon Repos, Lowlands, Enmore, Experiment, Culvert City and Tabatinga.

In the second half of the year, it is expected that a further 459 house lots will be allocated.
Additionally, the CHPA will develop 4,000 new house lots in 12 areas, with distribution expected in 2020.

3.115 In 2019, the sum of $170 million was allocated for housing and roof replacement subsidies in hinterland areas, of which $144 million was spent in the first half.

Of the 112 subsidies for new houses targeted in 2019, 35 were completed by June.

The remainder is anticipated to be completed by the end of the year, with materials already procured.
With regard to roof replacement subsidies, 16 of the 27 households targeted for this year benefitted from this intervention in the first half.

3.116 In the first half of 2019, there were 21 housing unit sales which were exempt from VAT, as a result of the Budget 2018 measure that excluded houses sold for less than $6.5 million from this tax.

In 2018, 13 housing unit sales were exempt from VAT, as a result of this measure.
Page 55 of 113 Mid-Year Report 2019 Agriculture 3.117 In the first half of 2019, progress continued towards the expansion and diversification of the agricultural sector with particular focus on non-traditional agricultural produce and value-added production.
The key interventions during the half- year included an updated food safety and security legislation; improved infrastructure for non-traditional and traditional agricultural production; development of new value chains and value-added industries in agro-processing for rice, sugar, non-traditional crops and livestock; and, building human resource and institutional capacities in the areas earmarked for development across the sector.
Of the $17.1 billion budgeted in 2019, nearly $7.7 billion or 45 percent was expended towards advancing an enabling environment for the development of the agricultural sector.

3.118 GuySuCo continued to focus on cost reduction measures and improved efficiencies in order to position the company to compete in and take advantage of lucrative markets.

In this regard, GuySuCo has received tractors and other equipment that will increase cane yield and lower the cost of production of sugarcane.
This will provide the base for a productive and profitable industry that will include, among other projects, cogenerated electricity from surplus bagasse, from the Albion factory, in the first instance.

The refurbishment and modernisation of this factory is expected to lead to the commercial production of plantation white sugar by 2022.
3.119 With respect to rice production, GRDB continued to work assiduously to resolve challenges faced by the rice farmers in the fields, in order to retain yield and production levels.

Despite the paddy bug infestation during the first crop of 2019, yield increased by 0.1 tonnes of paddy per hectare and rice production was 3.4 percent higher than that recorded for the first crop of 2018.

To combat the infestation and control the spread of the insect, GRDB commenced spraying of rice fields and dams.
3.120 The expansion of non-traditional crops was advanced through land-clearing and on-farm development in Ithaca, Mocha, Buxton and Triumph.

This initiative has resulted Page 56 of 113 Mid-Year Report 2019 in a total of 164 acres being brought under cultivation and 156 farmers receiving planting materials for crop production.

Since April 2019, these four communities have benefitted from full-time agricultural extension services.
Additionally, the National Drainage and Irrigation Authority (NDIA) has continued to grade access dams in other areas such as Fyrish, Free and Easy and La Parfait Harmonie, allowing farmers to better utilise recently cleared lands.

3.121 In addition, other non-traditional crop production is expected to increase.

National Agricultural Research and Extension Institute (NAREI) has projected the cultivation of onions to increase to 5 hectares, by the end of 2019, in Regions 3, 4, 5, 6 and 10.
Several farmers in these regions have already benefitted from training in techniques for growing onions, and 20 kilogrammes have been harvested in the initial demonstration exercise.

Breadfruit, another non-traditional crop, is being promoted to counter food security threats in Guyana, particularly in the hinterland areas, where climate change related weather events affect one of the main staples, cassava.
The first batch of 500 tissue culture breadfruit was produced, and this will increase access to quality planting materials, while simultaneously reducing the time for multiplication.

In order to support the expansion of non-traditional production, a bond and cold storage facility were completed, in Mon Repos, for planting materials.

This has facilitated the correct storage of planting materials, such as Irish potatoes, before distribution.
3.122 In Region 1, a collaboration between NAREI and the Regional Democratic Council will see an increase in the production and processing of ginger and turmeric for the local market.

This is expected to contribute to the improved livelihood of residents in the Region.
It is anticipated that by the end of 2019, the existing turmeric processing facility at Hosororo, which boasts a new solar drying facility, will be further strengthened and expanded, to facilitate the processing of increased volumes of commodities.

3.123 Agro-processing remains key for diversification of the agricultural sector.
There was continued cooperation between Government and the Guyana Manufacturing Association through the technical committee of the Inter-Ministerial Roundtable to Page 57 of 113 Mid-Year Report 2019 address the necessary actions required to develop the agro-processing industry.

Additionally, the fourth UncappeD Marketplace exhibition was successfully held in March 2019, with more than 70 local agro-processors promoting their products.
The technical committee, through the Guyana Marketing Corporation, has also facilitated the training of more than 50 businesses in various aspects of production, including processing techniques, labelling and packaging, and marketing.

The GRA has also been working with the private sector to address taxation and procedural issues that are seen to be hindering the operations of agro-processors.
The design of a new laboratory facility for the Guyana National Bureau of Standards will be completed in November, and, once constructed, will allow the Bureau to better support the certification of agro-processors, among others, to international standards.

3.124 Cooperation continued with the Islamic Development Bank to advance a reverse linkage programme for meat products which will see improved genetics being made available, as well as training in genetic management.
Further, initiatives to improve livestock breeds have resulted in more meat per animal, better quality meat, and bigger and heavier offspring.

In the review period, the artificial insemination process produced 561 offspring of cows (344) and pigs (217).

Additionally, with respect to the new state-of- the-art abattoir, slated for Onverwagt, design works are scheduled to commence during the second half of 2019.
As it relates to the dairy value chain, negotiations are currently ongoing for the scope of a feasibility study that will examine how the quality and quantity of milk produced can be improved.

3.125 The Guyana Livestock Development Authority (GLDA) continued to develop other livestock produce.

As such, the production of the black giant poultry expanded in all Regions and this is expected to contribute significantly to food and nutrition security in coastal and hinterland communities.
In addition, genetically-driven improvements to duck farming aims to resuscitate and build resilience in the industry, after the devastation of a disease outbreak earlier this year.

Further, staff of the GLDA were trained to strengthen the services offered to small ruminant producers, and the Authority is also Page 58 of 113 Mid-Year Report 2019 working closely with Brazilian investors in the Intermediate Savannah to increase the production of corn and soya beans for livestock feed production.
3.126 The strengthening of the fisheries industry progressed, with several initiatives undertaken in the first half of 2019.

Currently the seabob industry is under assessment for the Marine Stewardship Council (MSC) certification and has received a temporary pass in all three of the assessed areas.

The final report, due in August of this year, is expected to confirm that the seabob industry is certified to the MSC standards.
Additionally, the Fisheries Department has established a seabob observer programme to collect at-sea data and increase the identification of endangered, threatened and protected (ETP) vulnerable species using the World Wildlife Fund's ETP manuals.

This is anticipated to inform and guide planning and fishing practices, to ensure the sustainability of this industry.
3.127 As NDIA completed works to further increase the supply of water for the hinterland, eight reservoirs for water harvesting were constructed, primarily for livestock and crop production, in several communities, including Turtle Savannah, Small Kwatamang, Rupertee Cattle Pasture, Annai Central.

Additional reservoirs will be constructed in St. Ignatius, Kumu, Quarrie and Shulinab, with works expected to be completed by December 2019.
NDIA also completed 12 drainage and irrigation (D&I) structures and water systems by mid-year, which included construction of i) a D&I system at Friendly Farmers Scheme; ii) a conveyance canal at No.

66 Village, Corentyne; iii) a greenheart timber revetment at East Demerara Water Conservancy; and iv) a main irrigation control structure at Barnwell North, East Bank Demerara.

Further, the Grove/Diamond South Sluice was rehabilitated.
These D&I interventions will help to reduce the instances of flooding and improve agricultural production in these areas.

3.128 Additionally, the construction of 8 pump stations has advanced in the first half of 2019, in preparation for the delivery of high capacity drainage pumps.
Three mobile pumps are scheduled to arrive in Guyana, in November 2019, boosting the capacity to control and alleviate flooding, particularly to bring relief to farmers and residents in Page 59 of 113 Mid-Year Report 2019 flood-prone communities.

The Mahaica-Mahaicony-Abary Agricultural Development Authority also continued work on the construction of D’Edward Sluice, which was 50 percent completed at mid-year.

However, contractors are facing delays in implementation due to inclement weather.
On this note, the Hydrometeorological Service has completed an upgrade of the current satellite receiving system, in order to provide more reliable weather information to stakeholders.

3.129 The agricultural sector also saw progress in the strengthening of supporting legal and institutional interventions.

It was noted that the digitalisation of mapping of Ebini, Ituni and Kwakwani was completed.
An Environmental Impact Assessment and a Management Study were drafted to support the establishment of a modern agricultural research facility at Ebini.

In addition, the Food Safety Bill was passed in the National Assembly, in April.

The updated regulations for general food safety, abattoirs, meat, milk, poultry inspections and grading of eggs, fruits and vegetables are being drafted to pave the way for improved standards of agricultural products destined for local and international markets.
The Ministry of Agriculture has since commenced preparation for the establishment of the Food Safety Authority, which will have regulatory oversight.

3.130 Importantly, works on the national agricultural census, a critical activity to guide the sector, has commenced.

Currently, negotiations to obtain the technical support required for the execution of the census is on-going and preliminary works, including completion of the methodology design and questionnaire for the pilot survey, have begun.
Infrastructure 3.131 Infrastructure connectivity across all ten administrative Regions remains a core priority within the national infrastructure programme.

Of the $38.5 billion allocated for 2019, approximately $16.5 billion was spent during the first half of the year.

Of that amount, $5.2 billion was current and $11.3 billion was capital expenditure.

The infrastructure sector continued to face challenges with implementation, resulting mainly from a lack of staff in critical positions.
Since 2017, over 19 engineers were lost to the Page 60 of 113 Mid-Year Report 2019 private sector.

Human capacity constraints also stymied planning, procurement and contract management.

As a measure to attract and retain staff, an updated compensation structure for engineers and technicians was approved in July 2019.

Hence, it is expected that the engineering corps will be augmented significantly, going forward.
Roads and Bridges 3.132 During the first half of 2019, the sum of $5.5 billion was expended, out of a budgeted $16.3 billion, for roads and bridges.

Works on the Linden-Lethem Road Project have commenced with the establishment of the project work site compound at Wisroc.

The feasibility study for the 125 kilometres of road from Linden to Mabura, as well as the Kurupukari Bridge, commenced in the first quarter of 2019, and is expected to be completed by December 2019.
Along the same corridor, construction will commence, in the third quarter of 2019, on the Mile Zero to Rockstone Junction, which covers a distance of 6 kilometres.

Further, the studies and designs for the 72 kilometre Linden-Soesdyke Highway is underway, and is expected to be completed by the end of September 2019.

Additionally, studies for the reconstruction of the Wismar Bridge will commence in the second half of the year.
3.133 The East Bank/East Coast Road Linkage project has been lagging but progress has been made in discussions with the bilateral financing partner.

During the reporting period, an amount of $2 billion was expended on the construction of the East Coast Highway, which is on schedule to be completed by the end of 2019.

Turning to the Sheriff Street-Mandela Road Programme, the amount of $107.7 million was expended in the reporting period.
Issues, such as the relocation of utilities and mobilisation of key personnel and equipment, stymied greater progress.

3.134 With regard to hinterland roads, an amount of $913 million was spent during the first half of 2019.
Several activities, including the rehabilitation and construction of Mile 4-Mile 5 Bartica Potaro Road, Mile 6-Mile 19 Bartica Potaro Road, and Mile 4- Yarakita/Karrau to Buckhall, along with the internal roads in Port Kaituma, commenced Page 61 of 113 Mid-Year Report 2019 within the first half of 2019.
Further, construction and upgrading of internal roads within the newly established towns of Mabaruma, Bartica and Lethem commenced in the first half of 2019, while the construction of internal roads in Mahdia continued during the same period.

In addition, the rehabilitation and construction of several community roads commenced in areas such as Golden Fleece and Suddie in Region 2; Industry, Clonbrook, Timehri, Grove, Better Hope and Mocha in Region 4; Alness in Region 6.
All of these roads are expected to be completed by the end of 2019.

3.135 During the first half of 2019, Government undertook an assessment of the feasibility of developing the New Demerara River Bridge under a public-private partnership.

This assessment is based on previous studies and is being done in collaboration with the International Finance Corporation, a member of the World Bank Group.
Air and River Transport 3.136 During the first half of 2019, Government expended $251.2 million from an allocation of $2.2 billion for the improvement of air and water transport.

Works on the CJIA continued during the first half of 2019, in several areas, including the construction of the North East and South West runways, which are expected to be completed by September 2019.

Final construction works on the apron and taxiway will be completed by August 2019.
The construction of the new arrival terminal building, along with the remodelling of the existing terminal building, will be completed by the end of 2019.

Additionally, the facilities for the diesel generator room and fire pump station will be completed by August 2019.

However, to meet these deadlines, the contractor and the Ministry of Public Infrastructure are taking steps to accelerate progress by engaging in transition team meetings with the CJIA Corporation to address operational issues.
Coming out of the engagement, a recommendation was made for the use of local contractors for auxiliary works so that the principal contractor can focus on main areas such as runways and the departure lounge.

Additionally, the contract for the feasibility study for the upgrade of the Lethem Aerodrome was awarded earlier this year.
Page 62 of 113 Mid-Year Report 2019 3.137 With regards to river transport, the rehabilitation and construction works on the Bartica (Phase II), Leguan and Parika stellings commenced in the first half of 2019.

The docking and rehabilitation of MV Kanawan and MV Sabanto got underway in the second quarter, and will be completed in the third quarter of 2019.
Sea and River Defence 3.138 At the end of June 2019 an amount of $2.5 billion was expended on the maintenance, rehabilitation and construction of sea and river defence.
Construction and rehabilitation works were completed during the first half of 2019 at areas including Windsor Forest, Waller’s Delight, DeWillem, Aurora/Warousi, Westbury, Zeelandia, Henrietta Outfall, Chapman’s Grove, Crabwood Creek, Bush Lot/Maida, Capoey, Blenheim, Rosignol, Orealla Village, Cane Field – Leguan, Cottage Mahaicony, Stewartville, Blankenburg, Johanna Cecelia/Zorg, Good Success/New Hope and Grove/Lookout.
Further, notwithstanding the irregular supply of materials, more so, boulders, efforts are being made to complete all remaining projects during the second half of 2019.

3.139 The feasibility study for the waterfront development of Port Georgetown and along the East Coast corridor, up to Ogle, was finalised during the first half of 2019.

This report is now with the CDB for their approval, after which, a second stakeholder engagement will be held before finalising the design.
Energy 3.140 Government’s commitment to a green economy continues to guide its energy vision.

This was reflected in the $8.9 billion budgeted for 2019, which included several initiatives to increase renewable energy generation and improve energy efficiency.

As of the end of June 2019, the sum of $4.7 billion was expended in this sector, of which $2.4 billion was invested in reducing overall loss of electricity nationwide, under the Power Utility Upgrade Programme.
Under this Programme, a total of 361.1 kilometres of the low Page 63 of 113 Mid-Year Report 2019 and medium voltage distribution network in Regions 3, 4, 5 and 6 was rehabilitated.

Additional efforts, in the first half, to reduce electricity losses included the installation of 21,735 smart meters across the country.
3.141 Turning to renewable energy, in the first half of 2019, solar photovoltaic (PV) systems were rehabilitated at La Parfaite Harmonie and Long Creek primary schools, while solar PV systems were installed at the Ministry of Foreign Affairs and Parliament Buildings.

A further 80 government buildings will be outfitted with solar PV panels by the end of 2019.

To undertake this exercise, the 80 buildings were grouped into 10 lots, of which 8 lots were awarded in the second quarter of 2019.
Presently, the contractors will be mobilising and works will commence in the second half of the year.

3.142 With regard to hydropower, the construction of the 20 kilowatt plant at Hosororo, Region 1, was completed in the first half of 2019, and is now awaiting the end of the dry spell to commence final testing, with commissioning expected by the end of 2019.

Further, the Mabaruma 400 kilo-volt-ampere solar PV farm is still experiencing several technical challenges, resulting from defective installation.
While the contractor has responsibility for rectifying these faults, Government is considering alternative options to ensure that the farm is operationalised before the end of the year.

3.143 Under the Hinterland Electrification Programme, the contracts for the extension of the electricity network at Orealla/Siparuta and Lethem were recently awarded, with works expected to commence in the second half of 2019.
Delays in the procurement process have caused setbacks for the extension of electricity supply in Port Kaituma, Oronoque and Moco Moco, but these activities are expected to be completed by the end of 2019.

3.144 With respect to reducing Guyana’s carbon footprint, a contract for the installation of 400 stand-alone solar powered street lamps was awarded in the first half of 2019.
These lamps will be installed, in the second half of 2019, across the ten administrative Regions in areas including White Water Village, Region 1; Cotton Field, Lima, Queenstown, Page 64 of 113 Mid-Year Report 2019 Region 2; Wakenaam and Leguan Islands, Region 3; St. Cuthbert’s Mission, Kuru Kururu, Region 4; Moraikobai Village, Little Biabau, Mora Point, Region 5; Nos.
65 and 66 Villages, Region 6; Karrau Village, Region 7; Paramakatoi Village, Central Mahdia, Region 8; Aishalton and Moco Moco Villages, Region 9 and Ituni and Kwakwani, Region 10.

These installations, in addition to the 100 LED street lamps to be installed in various housing areas, will also improve security and night-time visibility.
Information Communication Technology 3.145 With a clear vision of the role and importance of Information and Communication Technology (ICT) towards the modernisation of Guyana’s economy, Government continued to work vigorously to stimulate growth of the ICT sector.

To this end, over $3.2 billion of the $4 billion budgetary allocation was expended in the first half of 2019, resulting in the expansion and emergence of major ICT and e-Government projects.
3.146 Under the US$34 million National Broadband Project, videoconferencing equipment for use in telemedicine applications were installed in 4 of the 30 identified health facilities, specifically health centres in Baracara and Orealla, and regional hospitals in Bartica and New Amsterdam.

An operational manual has been developed and personnel in these locations will receive training on its use in the second half of 2019.
The remaining videoconferencing equipment, which have already been procured, will also be installed in the second half of 2019 and training on their use will be executed.

As part of the smart classroom programme, connectivity was provided and equipment installed in the central/main smart classroom located at Queen’s College.
In the latter half of the year, smart classrooms will be established in other schools, including New Amsterdam Multilateral, Line Path Secondary, Bush Lot Secondary, President’s College, Leonora Secondary and 8th of May Secondary.

3.147 In addition, as part of the intelligent surveillance system under the Safe City Component of the National Broadband Project, civil works and installation of cameras were completed at 102 sites.
Fifty-two of these sites were operationalised in the first half Page 65 of 113 Mid-Year Report 2019 of the year, and the remaining 50 sites will be powered by August 2019.

A command centre will be established for the Guyana Police Force (GPF) in the first quarter of 2020; the sum of $85 million is allocated for its construction and bids for the required civil works are currently being evaluated.
In the interim, the command centre operations are housed at the National Data Management Authority’s Network Operations Centre.

Alongside the development of the national security infrastructure, 10 Long Term Evolution (LTE) towers were upgraded with new radios specifically for the security sector, and permission is being sought to utilise 7 towers from a local telecommunications company to install the remaining LTE equipment.
This will accommodate the use of broadband handsets by GPF, allowing for additional information to be channelled to the command centre.

Additionally, outfitting the 48 coastal LTE towers with microwave equipment, to double the available bandwidth, has been completed.

3.148 Internet connectivity plays a critical role in improving productivity, efficiency and the delivery of public services for government agencies.
As such, during the period under review, 11 fire stations, 7 police stations, and 1 training centre across all administrative regions were provided with internet access through the e-Government network.

In addition, ICT hotspots were established in 28 public areas/institutions across Regions 2, 3, 4, 5, 6 and 10.

For the remainder of the year, Government intends to establish a further 51 hubs/hotspots.
To facilitate this, satellite and solar equipment have been procured and civil works started to outfit locations.

3.149 The 5-year ICT Access and e-Services for Hinterland, Poor and Remote Communities project was operationalised this year.

Site surveys were completed in 15 communities across Regions 7, 8, 9 and 10, including Kangaruma, Kurukubaru, Apoteri, Waruni.
The procurement process has started for the acquisition of computer, satellite, and solar equipment to furnish and equip the 200 ICT hubs to be established under this project.

Twenty of these hubs will be created by the end of 2019 across Regions 7, 8, 9 and 10, in communities such as Kato, Monkey Mountain, Toka and Kimbia.

Technical training on the set-up and use of the hub equipment will also be provided to 30 persons Page 66 of 113 Mid-Year Report 2019 across all 10 regions.
They will be expected to provide training to members of their respective communities.

3.150 The Centre for Excellence in Information Technology (CEIT) was officially launched in June 2019.

Recruitment and training of Master Trainers are ongoing, with a Guyanese Master Trainer expected to return in August, after completing postgraduate studies in IT Infrastructure, Systems and Security.

Two other trainers are expected to commence postgraduate studies in Advanced Computing, in August.
In the interim, CEIT commenced training of the first cohort of 73 students in 3 certificate courses, by a specialist from the Centre for Development of Advanced Computing, in Network Security, Linux System Administration, and Data Communication and Networking.

The second cohort is expected to start training, in August 2019, in Business Computing, Advanced Web Technologies, and Office Automation.
3.151 In the first half of 2019, Government continued to provide a series of capacity programmes as part of ensuring that citizens are prepared to compete in the 21st century environment.

The Coding Camps that began in 2017, were expanded from being provided only during the August holidays to now being offered throughout the year.

During the period under review, training programmes were conducted in Regions 2, 4 and 6, with 350 students trained in Office tools, website creation and web development.
In the second half of the year, Government will be extending its outreach and training programmes to hinterland communities.

3.152 Additionally, during the first half of the year, Government provided technical support to the launch of a pilot for the Agricultural Commodity Exchange, as part of its policy to promote local business development and market access.

The primary focus of this product is the use of technology to bring farmers and buyers together to conduct commercial transactions.
This product was designed by a local company who won one of last year’s Hackathons, and, in the first half of 2019, 116 farmers were trained in the use Page 67 of 113 of the online platform.8 A partnership has been established with NAREI, who will provide support on the quality certification of products being sold through this platform.
Mid-Year Report 2019 Security 3.153 Government continued to ensure that the provision of law and order, protection of the populace and safeguarding of Guyana’s borders are maintained.

Of the $35.6 billion budgeted for the public security sector, for 2019, $15 billion has been expended at the half-year.
During the first half of 2019, the sum of $6.1 billion was expended towards a number of activities to further strengthen the GPF’s objective to deliver the highest standard of professional police services, and to serve and protect citizens by preventing and detecting all forms of crime in the maintenance of law, order and the preservation of the peace.

Through various interventions, serious crime declined by 3.2 percent in the first half of 2019.
Some of these interventions included: training of 124 ranks in basic forensic bloodstain pattern recognition; forensic video analysis; advanced crime scene photography; scene drawing; and community based crime prevention strategies in 10 communities.

3.154 Of the nearly $700 million that was budgeted for the construction and improvement of police stations, the sum of $78.2 million was expended as at the end of June 2019.
Designs for police stations and divisional headquarters at Golden Grove, Fort Wellington, Mabaruma and Mahdia have been completed, and construction is anticipated to commence in the second half of the year.

Further, of the $0.5 billion budgeted for vehicular and marine fleets, canine and mounted branches, and equipment for GPF, approximately $84.8 million was expended at the end of the first half of 2019.
In addition, during the same period, the Guyana Forensic lab was equipped with DNA and gun residue testing machines to conduct DNA analysis to aid in solving crimes.

8 The platform can be accessed by visiting www.farmersmarket.gy Page 68 of 113 Mid-Year Report 2019 3.155 The Customs Anti-Narcotics Unit (CANU) spent $165.1 million of the budgeted sum of $350 million in the first half of 2019.
During this period, a total of 112.9 kilogrammes of cocaine, 186.2 kilogrammes of cannabis, 36 grammes of ecstasy, and 590 grammes of unknown substances were seized.

3.156 The Guyana Prison Service, in delivering its mandate of ensuring safe custody and effective rehabilitation of inmates, was allocated approximately $4 billion towards the maintenance and improvement of the prison environment across the country.
Designing the reconstruction of the New Amsterdam prison will commence during the second half of this year.

Some components for the rebuilding of the Camp Street prison, including steel cells, have already been procured, with works to begin in the second half.

The expansion of the Mazaruni prison is ongoing and the project remains on track for completion in the second half of 2020.

These upgraded facilities are intended to alleviate the overcrowding situation across the prison system.
The procurement of equipment intended to improve the safety of officers and inmates, including body scanners, has commenced and is expected to be concluded in the second half.

To ensure that the Prison Service is staffed with qualified and competent officers, with the necessary skill set to allow them to effectively manage this complex environment, 24 new recruits were trained in the areas of supervision, correctional emergency response, leadership, and emergency medical procedures, among others.
The recruitment drive in the first half of 2019 brought the size of the Service to just over 500 officers, still short of the required 601.

3.157 The Guyana Fire Service (GFS) continues to work assiduously to ensure that it fulfils its mandate of protecting life and property.

The award for the procurement of five new ambulances, one airport rescue and firefighting vehicle, and two new water tenders was made in the first half of 2019 and delivery is scheduled before the end of the year.
The recent establishment of a maritime firefighting section of the GFS, which will address emergencies on Guyana’s waterways as well as support onshore firefighting operations, is expected to be fully operational by August 2019.

Some 60 trainees are expected to join their ranks in September 2019.

Page 69 of 113 Mid-Year Report 2019 3.158 As part of the Citizens Security Strengthening Programme (CSSP), two economic insertion activities were executed in the first half of 2019.
The first of these saw 215 at- risk youths from 20 target communities graduate from technical institutions and training centres in Regions 3, 4, 6 and 10.

In addition, 663 youths from these regions, as well as Region 5, are currently enrolled in the programme.

The technical and vocational education training is being implemented using the Competency Based Approach, which allows students to advance based on their abilities to master a skill or competency.
As part of this programme, participants are offered a monthly stipend of between $11,000 and $35,000, depending on how far they live from the training facility.

CSSP also funds fees associated with participation in the programme.

Another important component of the programme is the continuous psychological and mentorship support offered to youths, which reinforces positive behaviour.

3.159 The second economic insertion activity entailed an entrepreneurship training targeting at-risk youths.
As of the end of May 2019, 38 students from target communities in Regions 4 and 6 graduated from the programme.

Upon graduation, participants presented business ideas which were evaluated, and the sum of $11.9 million was distributed as grants to fund these ventures.

These start-ups will be monitored during the second half of the year.

In addition, a further 48 youths from Regions 4, 5 and 6 commenced classes and are expected to graduate and present their business ideas in August 2019.
3.160 The domestic violence capacity building training, another initiative of the CSSP, will run from July to September, and will target 100 mid-career police officers in domestic violence scenario response.

This is expected to improve the professionalism, empathy and integrity of officers when dealing with domestic violence incidents.

Tourism 3.161 Government has made significant strides in the tourism sector.
Based on analysis of VEMS (Visitor Exit Motivation Survey) conducted by the Bureau of Statistics (B0S), Page 70 of 113 Mid-Year Report 2019 the Guyana Tourism Authority (GTA) estimated that, with 286,732 visitors last year spending approximately $222,216 per visit, travel and tourism injected $62.6 billion directly into Guyana’s economy.

This would make tourism the second largest export sector in Guyana.
9 According to the World Travel and Tourism Council, travel and tourism contributes to 22,000 jobs in Guyana.

10 It should also be noted that tourism contributes to the GSDS.

In an effort to promote growth in the industry, the GTA has updated the Guyana National Tourism Strategic Action Plan, and the bylaws and code of conduct were completed in the first half of 2019.
3.162 During the first half of 2019, the sum of $177.2 million was expended in tourism development and promotion, compared to $190.2 million in 2018.

In the first half of 2019, tourist arrivals increased by 10.7 percent to 148,715 visitors, when compared to the same period in 2018.

The increase in visitor arrivals was ascribed to the Guyana Carnival, Mashramani, Independence celebrations, among others.
Progress was made in the first half of 2019 to better understand the impact of tourism on Guyana’s economy.

The GTA collaborated with the Canadian Executive Service Organisation to prepare an Action Plan for the Development of the Guyana Tourism Satellite Account.

Additionally, the VEMS was reviewed and updated with the view of moving the tool to an online platform, to increase responses.
A team from GTA and BoS will be trained by the Barbados Statistical Service, on the execution and analysis of data from surveys, such as VEMS, in the second half of 2019.

3.163 In the first half of 2019, Guyana secured three international destination awards.

Guyana was named the No.

1 “Best of Ecotourism” destination in the world, and honoured at the “Golden City Gate” multimedia awards as the first place winner for the “Destination” category in the nature destination worldwide video competition.
Both of these awards were presented at the Internationale Tourismus-Börse Berlin (ITB) Global 9Based on the Bank of Guyana Annual 2018 report and the estimated figure, tourism is among the top five export earning sectors in Guyana: Gold – US$766.8 million, Tourism – US$300 million, Rice – US$186.1 million, Bauxite – US$128.2 million, Timber – US$33.3 million 10World Travel & Tourism Council (2018), Travel & Tourism Economic Impact 2018 Guyana Page 71 of 113 Mid-Year Report 2019 Trade Travel Fair held in Berlin, Germany in March 2019.
In June, Guyana received the Latin American Travel Association’s (LATA) “Best in Sustainable Tourism” Award.

Guyana was selected for its impressive sustainable tourism practices and community-led tourism framework which promote job creation, help preserve local traditions and customs, encourage low-carbon lifestyles and provide livelihoods for indigenous communities.

3.164 The “I Love Guyana” campaign which comprises an 8-part video series, was launched in May with the release of the first video.
This has received over 23,000 views on social media.

A second part of the Campaign includes the design of an “I Love Guyana” logo, to be released in October.

Other marketing activities in the first half included a webinar with 30 travel agents in North America that focused on Essequibo.

This resulted in a plan being developed for the promotion of the “Top 10” reasons why tourism is a force for good in Guyana.
As part of its marketing strategy, Guyana hosted 8 familiarisation (FAM) groups in the first half of 2019, twice as many as the same period in 2018.

These trips have assisted writers to inform the world about our local products and tourism packages.

Additionally, Guyana attended and participated in 4 International Trade/Consumer shows, namely, Education Travel Conference (ETC), ITB Berlin, Routes America and Destinations, the Holiday and Travel Show.
3.165 In an ongoing effort to improve the tourism sector, two training curricula, in Successful Taxi Driver and Delivering Quality Service, were acquired from the Caribbean Tourism Organisation.

Approximately 340 persons were trained locally during the first half in Successful Taxi Driver, Delivering Quality Service, Business and Financial Management, First Aid/CPR and Tour Guiding, compared to 377 at the end of 2018.
3.166 In the second half of the year, GTA will work with Moraikobai, Karasabai, Chenapou and Warapoka to develop tourism products and strengthen their tour packages.

In addition, the mapping of strategic visitor flows will be completed before the end of the year, allowing for tailored experiences to be developed for different visitor groups.
Further, it is anticipated that the recently published “Tax Exemption Guide for Page 72 of 113 Mid-Year Report 2019 the Tourism Sector,” by the GRA, will help to grow this sector by providing businesses with information and clarification on available incentives.
Public Administration and Public Financial Management 3.167 As a continuing commitment to assess the national performance across several key areas of public financial management (PFM) and to support sustainable development, Government commenced its third joint Public Expenditure and Financial Accountability Assessment (PEFA), in May 2019.

The PEFA provides an update of progress in PFM since the last PEFA in 2013, and establishes a new PEFA baseline using the 2016 methodology.
The PEFA assessment covered 32 performance indicators under seven pillars: Budget Reliability, Transparency of Public Finances, Management of Assets and Liabilities, Policy-Based Fiscal Strategy and Budgeting, Predictability and Control in Budget Execution, Accounting and Reporting and External Scrutiny and Audit.
3.168 Overall, the preliminary findings of the PEFA show a PFM system in Guyana that is fairly robust; however, weaknesses exist in areas of risk management, multi-year budgeting and financial reporting.

Given the preliminary results identified in the draft PEFA Report, a 5-year action plan on reforms will be drafted by the Government of the Co-operative Republic of Guyana – PEFA Monitoring Group; which will form the basis of key reform actions to be undertaken between 2020 and 2024.
3.169 In March 2019, the Public Investment Management Framework was approved.

This Framework is derived from the Public Investment Management Assessment (PIMA) exercise that was completed for Guyana in December 2017, and outlines the approach to operationalise some of the main recommendations of this exercise.
Stemming from the recommendations in the PIMA, Government continued engagement with technical experts to improve and strengthen the public investment management processes, specifically, the initial stages of the project management cycle – from project identification, screening, pre-appraisal, appraisal and approval.
These actions resulted in the update of the Project Profile Concept Note (PPCN) template introduced for Budget Page 73 of 113 Mid-Year Report 2019 2019, revision of the screening criteria for public investment projects, and the commencement of training to undertake project pre-appraisal.
During the second half, works will advance on operationalising the framework for PIM, including development of guidelines and templates, as well as capacity building interventions focused on project appraisal and cost benefit analysis; and initiating the project preparation facility.

3.170 As noted in the 2020 Budget Call Circular, the Project Concept Note (PCN) and the PPCN will form the basis for the inclusion of capital projects in Budget 2020.
The updated project assessment criteria will guide the screening of project ideas and concepts presented by Agencies, vis-a-vis the PCN and PPCN, for inclusion in the budget.

3.171 In keeping with Government’s commitment to improving the efficiency of public procurement, several key actions were undertaken in the first half of 2019.

These include the legislative review of the Procurement Act Chapter 73:05, which commenced in 2018.
The substantive amendments are currently being reviewed by the Attorney General’s Chambers.

Notwithstanding, initial amendments and regulations have been enacted, providing for: 1) 2) Small Business Set-aside; Registration of bidders; 3) Mandatory preparation of procurement plans to be submitted to the Public Procurement Commission for the fiscal year covered by the National Budget, within 3 weeks after the National Budget is approved; and, 4) Increased thresholds for: a.
Restricted Tender Method of Procurement to $10,000,000 for contracts for goods and services (other than consultancy services) and $20,000,000 for construction contracts; and, b.

Request for Quotation Method of Procurement to $3,000,000.

3.172 Additionally, capacity strengthening continued for procurement personnel, sub- treasury staff auditors, and other staff involved in procurement.
This is a critical initial undertaking as National Procurement and Tender Administration Board embarks on the Page 74 of 113 Mid-Year Report 2019 development of a cadre of staff with the competence to perform data analytics, business process engineering, and public administration, with the aim of developing a plan for the introduction of e-procurement in Guyana.

3.173 Government has maintained its commitment to the institutionalisation of results- based management across the public sector.
In this regard, several initiatives have been undertaken to further strengthen national capacities, reinforce the results-based approach, and, ultimately, reform public administration.

In keeping with the National Monitoring and Evaluation Strategy and National Monitoring and Evaluation Training Plan, almost 100 public officials were exposed to the key concepts of M&E during the review period, as part of the national M&E capacity strengthening initiative.
Further, capacity strengthening is planned for the second half of the year, and will focus on designing and monitoring performance indicators.

It is expected that approximately 150 public officials will be participating in these training sessions, and, as a result, will be better able to conceptualise and implement their M&E functions of data collection, analysis and reporting.
3.174 As part of the preparation of Guyana’s first Voluntary National Review (VNR), which details progress towards achieving the 17 Sustainable Development Goals (SDGs), the urgent need for intensified data systems strengthening was highlighted as a challenge and a priority action going forward.11 In this regard, there will be targeted data clinics with sector agencies to review their data gaps, and identify strategies to address these, which will be incorporated in their relevant work programmes, going forward.
11 See Box 1 for further details on the VNR.

Page 75 of 113 Mid-Year Report 2019 Box 1 – Guyana’s First Voluntary National Review of the Sustainable Development Goals On July 18, 2019, Honourable Dawn Hastings-Williams, Minister of State, led the national delegation, which presented Guyana’s first Voluntary National Review (VNR) of the Sustainable Development Goals (SDGs), at the United Nations High Level Political Forum, under the auspices of the Economic and Social Council.
Guyana’s VNR elaborates the nation’s progress in effecting the Sustainable Development Agenda 2030, highlighting signal achievements as well as the particular challenges faced across the various sectors.
The VNR is a reporting tool which: i) outlines the process and key considerations for its preparation; ii) highlights main achievements regarding the relevant Targets of the 17 SDGs and the initiatives driving them; iii) identifies the indicators that are being used to track progress; iv) discusses challenges, as well as what has been done, and what is needed to overcome them; v) summarises lessons learned as a nation; and, vi) maps the way forward.

For Guyana, the VNR entails the review of all 17 SDGs.
Notable progress has been made in food security and ending hunger, access to water and sanitation, climate change mitigation, and natural resource management.

His Excellency, President David Granger has highlighted that Goal 4: Quality Education is the “mother of all Goals” and progress on this is critical to Guyana achieving all other Goals.
Guyana’s VNR is presented within the context of the national long-term development plan, the Green State Development Strategy: Vision 2040, the roadmap to becoming a green state.

Guyana is at a critical juncture in its social and economic development and conducting the VNR has provided a valuable opportunity to identify gaps in data development, planning, and implementation frameworks, as well as, reinforced the multidimensional nature of measuring development.
This first VNR emphasises the critical role of education, health, infrastructure and innovation in national development, and the urgent need for significant and sustainable investments in these sectors.

Therefore, Guyana has outlined eight priority actions, which shall be executed concurrently, towards achieving Agenda 2030, as part of Vision 2040.
These actions are listed as follows:  Demonstrate alignment between proposals for the formulation of public programmes and investments, and the strategic direction and plans, including Agenda 2030.

Thus, Vision 2040 and consequentially, Agenda 2030 will be advanced through the national budgeting process.

 Public dissemination and availability of Guyana’s first VNR, including at the highest levels of Government.

This will be done through a VNR Outcome Workshop for key stakeholders.
 Conduct a diagnostic gap assessment of institutional arrangements and human resources for achieving Agenda 2030.

 Conduct data development clinics, co-chaired by the Ministry of Finance and Bureau of Statistics, which will result in sector specific data development plans and inter sectoral requirements.
 Accelerate the pace of institutionalising monitoring and evaluation systems across whole-of-government, which will reinforce results-based management and evidence-based interventions to address development challenges.

 Realise mandatory inter-agency collaboration mechanisms to support tracking of core SDGs.

 Seek adequate and affordable funding and technical assistance to support the realisation of Agenda 2030.
In addition, comprehensively determine the costing of programmes and interventions within an M&E framework to achieve the SDGs within the national development priorities.

 Strengthen citizens’ knowledge, cooperation and partnerships for the attainment of the SDGs through awareness of developmental efforts to achieve Agenda 2030.

3.175 The Ministry of Finance continues to explore methods and systems to modernise and improve PFM.
Towards this end, the Integrated Financial Management and Accounting System was upgraded in 2018 to a current version 7.0 Integrated Financial Management and Information System (IFMIS).

The upgrade is geared to support public Page 76 of 113 Mid-Year Report 2019 sector functions, in order to increase the effectiveness and efficiency of state financial management and facilitate the adoption of modern public expenditure practices, in keeping with international standards and benchmarks.
During the review period, an IFMIS assessment was conducted which identified areas for strengthening, and mapped out a plan for a phased approach towards improving PFM and IFMIS arrangements.

Focus was also placed on the training of users of the system, in order to address issues in executing key processes and to ensure optimal utilisation.
3.176 In addition, efforts were directed towards strengthening PFM systems, as there is need to continue working towards the implementation of the Treasury Single Account, the adoption of the International Public Sector Accounting Standards, the restructuring of the Government Chart of Accounts, as well as the re-engineering of the business processes, to align with the reform.
The National Payments System implementation has begun with a pilot, and the Ministry has commenced the electronic transfer of salaries and pensions, which will continue in a phased manner.

3.177 Further, strengthening of tax administration has continued with the upgrading and expansion of tax systems, as well as the decentralisation of tax services across the country.

These efforts reaffirm Government’s commitment to ensuring that tax administration operates optimally, and is accessible by all.
As part of the ASCUYDA World Project, which specifically focuses on improving the efficiency and effectiveness of Customs Operations, the GRA has operationalised several key functional modules.
These modules include: 1) Manifest – allowing for the electronic submission of manifests at all wharves and transit sheds; 2) Commercial Imports – which includes CARICOM Trade Agreements and Partial Scope Agreements, with the latter being installed incrementally; 3) Exemptions – including for all vehicles except for the buses and re-migrants’ categories; 4) Immediate payment; 5) Certain categories of exports; 6) Private warehouses; and, Page 77 of 113 Mid-Year Report 2019 7) Passenger Baggage Declaration at both international airports.
3.178 In the first half of the year, Government enacted legislation to modernise and simplify trade processes, through the passage of the Customs and Trade Single Window System Bill for the Single Window Automated Processing System, and the Customs (Amendment of Schedules) Bill for the implementation of a Harmonised System (HS).
This Single Window now allows for the submission of trade and transformation information through a single electronic gateway, which is then distributed to all pertinent public entities for subsequent processing, eliminating duplication and redundancy, and reducing transaction costs.

Further, HS will allow traders to obtain consistent tariff treatment for goods, while enabling structured analysis of international trade statistics.
3.179 As a result, GRA’s risk management capability has been significantly enhanced, and it has recorded an improved level and quality of trade services for carrier agents, wharfingers, brokers, importers and Customs staff.

As part of a planned strategic approach to improve services at the regional branches of the GRA, several service measures were introduced and/or enhanced, particularly at Bartica, Lethem, Mabaruma and Parika.
Some of these services include: desk examinations and audits, processing and issuance of drivers’ licences, and issuance of Taxpayer Identification Numbers.

Additionally, several processes were introduced or modified, including: the processing of individual tax returns, tributors’ tax returns, objections, mortgage interest relief applications, refunds and set off, requests for waivers and payment arrangements, and issuing of compliance and lability letters.
Further, the recently established Mabaruma Office, which officially opened in January 2019, also examines vehicles for registration and transfer of ownership.

3.180 Institutional and capacity strengthening is a continuous process, and for the Petroleum Revenue Audit Unit, key staff have been hired and are receiving training in preparation for first oil.

12 The GRA also launched the Vehicle Crossing Software 12 See Box 2 for further details on institutional strengthening for oil and gas.
Page 78 of 113 application, which allows for better monitoring, as it captures and records information on all vehicles crossing Guyana’s borders.

Mid-Year Report 2019 Box 2 – The Institutional Demands of Oil and Gas The imminence of the petroleum industry has increased the expectations of the Guyanese people with regard to its potential for improving lives and transforming the economy.
However, experiences across the world have shown that resource availability alone is not sufficient to effectively deliver on these expectations.

The resource curse and the potential for conflicts are evidence of the need for robust regulatory frameworks and exceedingly strong institutional capacities in the effective management of the national patrimony.

As such, Government has consistently prioritised preparedness prior to first oil, expected in 2020.
An Inter-Ministerial Technical Committee on Petroleum (IMTCoP) was established, in 2017, to coordinate the various public sector actors that have a role to play in the industry and the necessary capacity building.

Since then and commendably, Guyana is one of the few countries in the world that has established a sovereign wealth fund (entitled the “Natural Resource Fund”) prior to receipt of oil revenues.
However, Government recognises that, given the varying performance of PSIP and the inadequacy of the public education system, among other factors, the efforts to prepare for 2020 and beyond need to be intensified.

As such, a key focus and mandate for Budget 2020, is accelerating institutional strengthening in preparation for first oil and oil revenues.
Institutional strengthening for oil and gas will have at least two facets: 1) capacity building for public institutions in the discharge of their regulatory role within the petroleum industry, and 2) strengthening of public institutions to effectively utilise anticipated increased resources in the future.
For the former, institutions such as the Guyana Revenue Authority, the Department of Energy and the Civil Defence Commission must focus on building capacity for cost audits, designing and negotiating production sharing agreements and oil spill management and preparation, respectively, among many other areas.

Through the IMTCoP, Government has identified more than 70 areas for strengthening across 9 institutions, so far.
The imperative is to ensure that Guyana’s institutions are sufficiently equipped such that resource extraction delivers the maximum allowable benefit to the country, while assuring the safety of the environment and citizenry.

Failure to do so could result in revenue leakages and other externalities, to the detriment of Guyana’s current and future generations.
The second critical aspect of institutional strengthening, mentioned above, is to ensure that public institutions are equipped to effectively spend additional revenues expected from oil.

Government is continually cognisant of the need to effectively manage public funds and, given the varying performance of the PSIP and the unremarkable health and education outcomes in recent history, recognises that institutions must be reformed and improved significantly to ensure that revenues are not wasted.
Proposing increased allocations for drugs and medical supplies when procurement is inefficient, increasing teacher wages without commensurate increases in education outcomes and a direct linkage to performance, and budgeting to expand national public infrastructure without a sufficient engineering corps and quality control, are all recipes for wastage of public funds.
As such, all sectors are mandated to prioritise institutional strengthening so they attain the capacity to effectively deliver expanded public programmes and services, with a focus on achieving the results and ambitions set out in the Green State Development Strategy: Vision 2040, which incorporates the SDGs.

Otherwise, revenues from oil would be for naught.

Page 79 of 113 Mid-Year Report 2019 4.


Economic and Fiscal Risks and Proposed Policy Responses 4.1 This segment of the report is prepared pursuant to Section 67(2)(c) of the FMAA 2003.

The management of economic and fiscal risks is conducted via the monitoring of the four sectors of the economy – real, external, monetary and fiscal – by respective agencies, individually, and jointly under the Macro-Fiscal Forecasting Committee.
4.2 Notwithstanding the projected growth for 2019, the attainment of revised targets could be undermined by domestic and external risks.

The pace of implementation of the PSIP, the ratio of non-performing loans to total loans, political uncertainty, and the influx of immigrants, represent some critical internal threats.

At the same time, a slowing global economy amid weak investment, exports, and consumption are among the major risks coming from outside our borders.
Other risks include, but are not limited to, climate change, enforcement of key legislation, and data availability and quality.

4.3 The implementation rate of the PSIP remains a concern for the Government, despite the increase in capital expenditure in the first half of the year, as bottlenecks in project execution and implementation still exist.
As highlighted earlier in this report, problem areas include the paucity of critical staff, such as engineers, and procurement- related issues, such as delays in the completion of evaluation reports.
However, Government is in the process of reforming PIM, and has already put mechanisms in place to combat some of the existing bottlenecks, including emphasising criteria-based project selection for public investment, the introduction of detailed project concept notes in budget submissions, and improving the ABCs for better planning, implementing and monitoring of the PSIP.
These interventions, collectively, should improve the quality of investments being undertaken and their preparedness for implementation.

4.4 Notwithstanding the improvements to public investment management, Government is cognisant of the varying institutional capacities across the public sector.
In light of anticipated additional revenues, increased economic activity and wider regulatory and service delivery demands, this presents a risk to ensuring effective Page 80 of 113 Mid-Year Report 2019 budgeting, spending and value for money.

Government has mandated all Budget Agencies to accelerate institutional strengthening, going forward.
Box 3 – Sensitivity Analysis of GDP To assess and quantify the impact of domestic and external risks on the economy's targets, the Ministry of Finance computed changes to real GDP growth that could materialise in the event of key industries experiencing variations in output.

Considering a baseline growth for the overall economy of around 4.5 percent, each industry’s growth rate was shocked both positively and negatively.
Negative shocks entail a curtailment of growth rates of either 50 percent, or 75 percent, of their forecasted values while positive ones correspond to an expansion of the rates by either 25 percent or 50 percent.

Consequently, once an industry was shocked, the impact of its new estimated production was assessed on the GDP, ceteris paribus.

The charts below highlight the result of this exercise for key sectors.
For instance, if the rice industry were to grow by 1.7 percent rather than the projected 3.4 percent, the overall economy would contract by 0.06 percentage points.

At the same time, if the gold industry were to achieve a 4.8 percent growth rate, rather than the current forecast of 3.2 percent, Guyana's GDP growth would increase by 0.16 percentage points.
0.50 sector growth 1.25 sector growth 0.75 sector growth 1.50 sector growth 4.7% 4.6% 4.5% 4.4% 4.3% 4.2% 0.50 sector growth 1.25 sector growth 0.75 sector growth 1.50 sector growth Sugar Rice Forestry Bauxite Gold 5.2% 4.8% 4.4% 4.0% 3.6% 4.5 The credit market has improved considerably and the ratio of non-performing loans to total loans has declined compared to the last two years.
Nevertheless, the figures remain in double digits, standing at 12.3 at the end of the first quarter of 2019, compared to 9.5 in the second quarter of 2015.

As such, further efforts within the financial system are required in order to minimise this portfolio, especially given the recent increase in borrowing across all sectors.

The Bank of Guyana will continue to undertake stress tests of the financial system to ensure it takes appropriate actions to promote resilience.
Page 81 of 113 Mid-Year Report 2019 Box 4 – Exchange Rate Fluctuations and Debt Guyana’s external debt portfolio is susceptible to exchange rate risk; given that it is denominated entirely in foreign currencies.

The US dollar is the most dominant currency in the external debt portfolio, comprising 73.4 percent as at June 30, 2019.
Therefore, fluctuations in the exchange rate for Guyana dollars to US dollars can have a significant impact on the value of the external debt stock, as expressed in Guyana dollar terms.
THE EFFECT OF CHANGES IN THE GUYANA/US DOLLAR EXHANGE RATE ON GUYANA'S EXTERNAL DEBT STOCK (IN MILLIONS OF DOLLARS) Currencies in External Debt Portfolio US Dollar Equivalent Guyana Dollars Baseline 10% Appreciation 10% Depreciation (Exchange Rate 208.5) (Exchange Rate 187.65) (Exchange Rate 229.35) US dollars Euro Chinese Y uan SDR Other Total External Debt to GDP Change in External Debt to GDP 935.45 8.22 226.39 86.23 17.75 1,274.04 195,042.17 1,713.23 47,201.53 17,979.54 3,701.81 265,638.29 31.0% 175,537.96 1,713.23 47,201.53 17,979.54 3,701.81 246,134.07 28.8% -2.3% 214,546.39 1,713.23 47,201.53 17,979.54 3,701.81 285,142.50 33.3% 2.3% Notably, at the prevailing exchange rate for a US dollar of $208.5 in the baseline scenario, the current external debt stock of US$1,274 million as at June 30, 2019 is equivalent to $265,638.3 million.
However, a 10 percent appreciation in the exchange rate of the Guyana dollar to the US dollar would result in a 7.3 percent reduction in the relative value of the external debt stock, from $265,638.3 million to $246,134.1 million.

Conversely, a 10 percent depreciation in the exchange rate of the Guyana dollar to the US dollar results in the opposite effect of a 7.3 percent increase in the relative value of the external debt stock, from $265,638.3 million to $285,142.5 million.
Exchange rate fluctuations can also impact debt sustainability, due to the resulting effect on the debt-to-GDP ratio.

The external debt-to-GDP ratio, based on the revised GDP for 2019, is 31 percent under the baseline scenario.

The scenario of a 10 percent exchange rate appreciation of the Guyana dollar to US dollar gives rise to a 2.3 percent reduction in the external debt-to-GDP ratio, from 31 percent to 28.8 percent.
Meanwhile, the scenario of a 10 percent exchange rate depreciation would result in an opposite 2.3 percent rise in the debt-to-GDP ratio, from 31 percent to 33.3 percent.

These ratios all fall well below the IMF threshold.

Nonetheless, exchange rate depreciations of a greater magnitude may potentially escalate debt to GDP levels much closer to the sustainability threshold.
By contrast, exchange rate appreciations of a higher degree would result in lower debt stock and debt service payments in Guyana dollar terms.

4.6 Despite Guyana’s stability with respect to its outstanding debt, which is rated as moderate risk of debt distress, the country faces new challenges due to the reduction in concessional financing and the lack of adequate capacity and institutional framework to facilitate domestic debt instruments.
Government is in the process of finalising a draft Public Debt Management Bill, which, when passed, will guide borrowing and investment, and ensure debt is managed in a manner deemed fiscally sustainable.

Page 82 of 113 Mid-Year Report 2019 4.7 The influx of immigrants has the potential of crowding-out employment of local workers across several sectors, creating pressure in the labour market.
Additionally, this influx has created, and continues to create, additional demands on the Treasury, as Government seeks to ensure that appropriate systems are in place to register migrants, especially Venezuelans, so that they have access to basic social services.

Government, through the Multi-Agency Coordinating Committee for Migration, continues to monitor the situation closely, in order to assess and address potential socio-economic threats and risks.
4.8 Climate change and unpredictable weather conditions remain a persistent threat for the agriculture, forestry, and mining and quarrying sectors, due to the adverse impact on output for the former, and on the condition of roads in hinterland communities for the latter two.

This risk is also evidenced by its impact on critical sea and river defence structures in coastal and riverain communities.
In recent years, Government has spent over $2 billion, annually, on adaptation and response measures in the infrastructure sector, including constructing and repairing critical sea and river defence systems and hinterland roads.

Other mitigation practices, including the introduction of appropriate and resilient crop varieties, will be key in a wider strategy being elaborated within the National Climate Change Policy and Action Plan and the National Adaptation Plan.
4.9 Also affecting agriculture, specifically the rice industry, is the rice paddy bug.

Though the infestation has not resulted in lower yields for Region 6, where there were initial reports of an infestation during the first half of the year, it has the potential to adversely affect the economy, as it can result in significant losses in output, exports and income, if not contained.
While remedying it will drive up production costs, the GRDB is supporting farmers by undertaking spraying across Regions and collaborating with farmers to monitor fields daily.

4.10 On the external side, the downward revisions for global growth in 2019 has the potential to weaken investments and international trade, which can result in less financing for, and remittances to, developing countries like Guyana.
Moreover, rising Page 83 of 113 Mid-Year Report 2019 trade tensions between the US and China, which has recently resulted in a depreciation of China’s renminbi to an almost historic low, will affect projects supported by the China EXIM Bank that are already underway.

4.11 Commodity prices mostly weakened thus far in 2019 and are expected to remain below 2018 levels, against a backdrop of trade tensions and adverse trends in trade flows that are anticipated to continue restraining world economic activity.
Although this factor might hinder production in Guyana’s traded-goods sectors, export promotion is at the forefront of the Government’s agenda, with the advancement of the draft National Value- Added Export Strategy.

Additionally, the operationalisation of the NRF will help to reduce exposure to volatility in crude oil prices, when Guyana begins producing this commodity.
4.12 In addition to the risks highlighted above, the pace of implementation and enforcement of key legislation and policy actions are also of concern.

This holds especially true within the oil sector, since production of oil is scheduled to commence in the first quarter of 2020, and the lack of adequate mechanisms could result in revenue leakage.
The acquisition of a US$20 million loan, from the World Bank, in the first half of the year, should help to lessen concerns, as the funding is used to formulate policy, and build structures and capacity in key institutions.

4.13 Critical to ensuring evidence-based decision making and enhancing the responsiveness of the public sector to the needs of the citizens, is timely access to quality data – a recurring concern for Guyana.
The lack of strong data systems constrains development, as it is key to supporting planning, developing coherent policies, and guiding targeted programmes.

Government has committed to conducting data clinics, co- chaired by the Ministry of Finance and the Bureau of Statistics, to aid in data development and enhance statistical capacities at the national level.

4.14 Government is also monitoring upside risks, particularly those related to the emergence of the oil and gas services.
In the lead up to first oil there has been a noticeable surge in economic activities, particularly in the construction and services sector.

Such Page 84 of 113 increased level of activity can lead to inflationary pressures, but authorities continue to monitor the headline rate to ensure that appropriate policy actions are taken, as needed.

Mid-Year Report 2019 Page 85 of 113 Mid-Year Report 2019 5.
Conclusion 5.1 Guyana is at a significant juncture in its development trajectory and the implications of this are at the forefront of Government’s national agenda, as elaborated in the Green State Development Strategy: Vision 2040.

Key macroeconomic variables for Guyana have remained stable at the half-year, a testament to Government’s implementation of sound and transformative economic policies, aimed at empowering lives and building sustainable communities.
Notwithstanding the challenges faced in the first half of 2019, targeted actions have been taken to address them.

As such, the economy has performed commendably in the first half, with growth of 4 percent over mid-year 2018, and further positive growth projected for the fiscal year.

5.2 In light of the varying developments during the year, the revised growth target for 2019 is 4.5 percent, 0.4 percentage points over that of 2018.
Growth is anticipated to be broad-based, with all main sectors expected to expand.

Growth will be driven by rice, forestry, gold, construction and services.

A number of downside risks, both locally and internationally, especially political uncertainty going into the impending General and Regional Elections, have been identified that could impact negatively on the attainment of the revised growth rate.
However, Government is convinced that its armoury of policy actions and measures will contribute to mitigating such risks and threats.

The non- financial public sector deficit is projected to improve, despite higher expenditures.

5.3 Guyana is now among 5 CARICOM countries to have presented its first VNR of the 17 SDGs.
More importantly, Guyana will use this report as a tool in the elaboration of the M&E Framework for the GSDS, as well as to guide strategic and programmatic initiatives to be implemented as part of the thrust towards realising the ambition of Vision 2040.

Government has noted with concern the performance of the education sector, given the importance of adequate human capital to achieving the goals of the GSDS and the transition to a green economy.
The completed Education Sector Strategic Plan must address, frontally, the challenges.

Page 86 of 113 Mid-Year Report 2019 5.4 As Guyana progresses even closer to becoming an oil-producing nation, Government continues to strive to ensure that: 1) the requisite systems, human resources and tools are in place, such that the economy can be sufficiently diversified, and 2) institutions, infrastructure and technologies are in place to advance the growth of the economy, both oil and non-oil.
Government remains committed to Guyana’s transition to a green state where the Good Life is guaranteed to all.
Page 87 of 113 APPENDICES APPENDIX A1 MID-YEAR REAL GDP GROWTH RATES BY SECTOR ITEM Agriculture, Fishing and Forestry Sugar Rice Other Crops Livestock Fishing Forestry Mining and Quarrying Bauxite Gold Other Manufacturing Sugar Rice Other Manufacturing Electricity and Water Construction Wholesale and Retail Trade Transportation and Storage Information and Communication Financial and Insurance Activities Public Administration Education Health and Social Services Real Estate Activities Other Service Activities TOTAL Non-Sugar Growth Rate (%) 2019 2018 2019 REVISED BUDGET PROJ 1.4 2.3 3.4 4.0 0.7 -12.8 5.0 1.5 -23.8 -0.5 5.0 23.1 - -6.2 45.9 1.0 -23.8 -0.5 5.2 2.0 11.0 8.1 1.1 1.9 5.2 1.3 2.4 2.4 7.5 14.0 4.1 4.9 2018 HY 2019 HY 4.9 -30.6 -2.0 4.6 28.8 5.5 18.1 2.3 33.6 -9.1 53.4 -0.3 -30.6 -3.8 4.7 1.8 8.1 14.7 1.0 0.9 2.9 1.3 2.7 2.4 7.6 18.4 -0.3 -2.7 3.7 4.8 -8.1 -12.2 8.5 2.6 -2.9 4.4 -0.7 3.6 -2.6 3.7 4.0 3.9 8.2 5.9 5.5 3.3 4.1 1.6 1.0 2.8 5.9 10.0 4.6 4.5 5.0 4.0 4.4 4.5 5.6 4.0 Figures: Percent Source: Bureau of Statistics Page 88 of 113 Mid-Year Report 2019 GDP Growth Rates by Sector APPENDIX A2 MID-YEAR REAL SECTOR SHARE OF GDP ITEM Agriculture, Fishing and Forestry Sugar Rice Other Crops Livestock Fishing Forestry Mining and Quarrying Bauxite Gold Other Manufacturing Sugar Rice Other Manufacturing
 Electricity and Water Construction Wholesale and Retail Trade Transportation and Storage Information and Communication Financial and Insurance Activities Public Administration Education Health and Social Services Real Estate Activities Other Service Activities 2016 HY 16.4 1.7 3.0 4.9 2.7 2.2 1.9 15.1 1.4 11.3 2.4 6.5 0.5 1.9 4.1 1.8 10.2 11.4 11.4 7.1 4.8 7.3 4.6 2.0 1.2 3.9 2017 HY 16.3 1.5 3.8 4.9 2.5 2.2 1.5 13.7 1.2 10.8 1.7 6.8 0.4 2.4 4.0 1.8 11.1 12.0 11.4 7.2 4.6 7.1 4.5 2.0 1.2 3.8 2018 HY 16.3 1.0 3.5 4.8 3.0 2.2 1.6 13.3 1.5 9.4 2.5 6.5 0.3 2.2 4.0 1.7 11.4 13.1 11.0 6.9 4.5 6.9 4.4 1.9 1.2 4.3 2019 HY 15.6 0.9 3.5 4.9 2.7 1.9 1.7 13.2 1.4 9.4 2.4 6.5 0.2 2.2 4.0 1.7 11.9 13.4 11.2 6.9 4.5 6.7 4.3 1.9 1.3 4.5 TOTAL 100.0 100.0 100.0 100.0 Figures: Percent Source: Bureau of Statistics Page 89 of 113 Mid-Year Report 2019 Sector Share of Real GDP APPENDIX B MID-YEAR BALANCE OF PAYMENTS ANALYTICAL SUMMARY ITEM 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 2019 REVISED A Current Account (1,310.0) (361.2) (578.5) (866.8) (1,378.9) 1.0 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 2.0 Services (Net) 2.1 Factor 2.2 Non Factor (Net) 3.0 Transfers 3.1 Official 3.2 Private B Capital Account 1.0 Capital Transfers 2.0 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 Errors and Omissions C D E Financing (943.5) 1,388.1 128.2 27.1 186.1 766.8 33.3 221.9 24.8 (2,331.6) (496.0) (1,835.6) (864.7) (27.7) (837.0) (256.4) 1,449.5 162.9 29.4 195.0 777.0 45.2 228.8 11.3 (1,705.9) (438.0) (1,267.9) (424.6) (16.0) (408.6) 498.2 319.8 498.2 319.8 (329.3) 713.2 65.4 10.3 111.1 369.7 17.6 131.0 8.0 (1,042.5) (239.0) (803.5) (443.9) (28.9) (415.1) 194.7 194.7 (628.0) 743.7 65.0 12.0 101.2 411.2 17.1 100.3 36.9 (1,371.8) (241.6) (1,130.2) (456.3) (21.8) (434.5) 217.5 217.5 (953.1) 1,425.1 131.3 25.0 202.0 777.0 40.0 228.8 21.0 (2,378.2) (505.9) (1,872.3) (932.4) (16.0) (916.4) 506.6 506.6 1,185.7 376.2 477.6 795.2 1,272.75 23.5 34.7 8.9 13.9 34.7 1,167.0 82.5 137.6 (55.1) - 1,084.5 (4.8) (8.0) 351.6 42.2 98.3 (56.1) - 309.4 (10.1) 0.0 480.3 (0.8) 27.0 (27.8) - 808.2 4.7 35.2 (30.6) - 481.1 803.5 (11.7) (26.9) (38.9) (15.30) 1,248.2 42.2 98.3 (56.1) - 1,205.9 (10.1) 0.0 OVERALL BALANCE (132.2) 15.0 (139.8) (86.9) (106.13) 1.0 Bank of Guyana net foreign assets 2.0 Change in Non-Financial Public Sector Arrears 3.0 Exceptional Financing 3.1 Debt Relief 3.2 Balance of Payments Support 3.3 Debt Forgiveness 3.4 Debt Stock Restructuring 132.2 55.6 -
 76.6 17.9 - 58.7 - (15.0) (78.5) - 63.5 18.1 - 45.4 - 139.8 110.6 - 29.2 0.6 - 28.6 - 86.9 6.3 - 80.6 50.7 - 29.8 - 106.1 10.0 - 96.1 50.7 - 45.4 - Figures: US$M Source: Bank of Guyana Page 90 of 113 Mid-Year Report 2019 Balance of Payments Analytical Summary APPENDIX C MONETARY SURVEY ITEM 2018 DECEMBER 2018 HY 2019 HY 1.0 Total Money & Quasi Money 1.1 Money 1 1.1.1 Currency 1.1.2 Demand Deposits 2 1.1.3 Cashiers' Cheques & Acceptances 1.2 Quasi Money 1.2.1 Time Deposits 2 1.2.2 Savings Deposits 2 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 Credit Balance 3 2.2.1 Agriculture 2.2.2 Mining & Quarrying 2.2.3 Manufacturing 2.2.4 Services 2.2.5 Households 4 2.2.6 Credit Card Amount 4 2.2.7 Real Estate Mortgage Loans 2.2.8 Other 394,931.8 174,998.5 102,780.6 64,588.4 7,629.5 219,933.3 21,792.4 198,141.0 253,704.6 54,758.4 103,654.8 (26,152.4) (22,743.9) 233,560.2 13,284.6 5,130.2 24,456.6 69,761.2 31,657.5 3,117.0 81,770.8 4,382.2 372,598.8 155,299.5 89,854.0 60,335.3 5,110.2 408,041.2 175,668.1 100,966.5 71,022.3 3,679.3 217,299.3 24,193.2 193,106.1 232,373.1 28,269.0 204,104.1 236,760.5 44,820.4 98,684.8 (24,561.5) (29,302.8) 270,209.1 66,633.3 115,562.5 (29,667.4) (19,261.8) 225,846.6 13,422.6 4,910.3 26,007.6 65,758.4 28,223.3 3,048.9 79,944.9 4,530.5 238,829.8 13,140.0 5,204.7 26,127.7 70,498.4 32,041.4 3,133.3 84,539.0 4,145.4 2.3 Financial Institutions (Net) (34,614.0) (33,906.5) (35,254.0) 3.0 Foreign Assets (Net) 3.1 Assets 3.2 Liabilities 168,104.9 190,516.3 (22,411.4) 158,074.7 180,243.6 (22,168.9) 172,415.9 196,559.7 (24,143.9) 4.0 Other Items (Net) (26,877.8) (22,236.4) (34,583.7) NB.
Figures may not add to totals due to rounding Notes: 1) Narrow money is further disaggregated to show cashiers' cheques & acceptances.

2) Deposits in this table, refer to private sector deposits.

3) Private sector credit categories were aggregated to reflect the economic sectors in the real sector.

4) The credit card amount was excluded from the household/personal loans figure and shown as a separate amount.
Figures: G$M Source: Bank of Guyana Page 91 of 113 Mid-Year Report 2019 Monetary Survey APPENDIX D MID-YEAR CONSUMER PRICE INDEX ALL ITEMS FOOD CLOTHING FOOTWEAR AND REPAIRS HOUSING FURNITURE TRANSPORT & COMMUNICATION MEDICAL CARE AND HEALTH SERVICES EDUCATION, RECREATION & CULTURAL SERVICES MISCELLANEOUS GOODS & SEVICES 2018 Dec. 117.1 138.5 94.2 82.4 100.4 90.6 120.3 129.6 96.0 120.3 2018 June 2019 June 116.2 118.9 135.9 144.5 97.2 87.9 90.5 81.5 100.1 99.9 90.8 89.6 120.2 120.2 126.7 132.4 96.6 96.5 119.7 120.8 Source: Bureau of Statistics Page 92 of 113 Mid-Year Report 2019 Consumer Price Index APPENDIX E1 MID-YEAR CENTRAL GOVERNMENT FINANCIAL OPERATIONS ITEM 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 2019 REVISED Total Revenue 217,020.1 238,326.7 109,184.9 115,873.8 238,406.5 Revenue Tax Income taxes Value-Added and Excise taxes Trade taxes Other Non-tax Private sector Public enterprise & BOG - - - - - Total expenditure 254,631.7 291,041.4 111,822.6 121,863.9 295,349.1 Current expenditure Non-interest expenditure Personal emoluments Other goods and services Transfer Payments Interest External Domestic Primary balance
 Current balance Capital Revenue Capital Expenditure - 18,974.6 97,325.6 93,070.6 31,547.2 23,419.0 38,104.4 4,255.0 3,771.0 484.0 22,798.2 18,543.2 5.0 24,538.3 226,070.6 217,471.8 70,151.1 60,791.1 86,529.6 8,598.8 7,541.5 1,057.3 20,927.7 12,329.0 7.0 69,278.6 Overall Balance before Grants (37,611.6) (52,714.7) (2,637.7) (5,990.1) (56,942.6) Grants HIPC relief Original Enhanced CMCF MDRI Other Projects Non-projects 10,769.6 3,189.5 - 962.5 2,227.0 - 7,580.1 4,891.8 2,688.3 11,217.2 980.8 - 980.8 - - 10,236.4 7,209.9 3,026.5 5,725.5 1,964.2 479.5 1,484.7 - 3,761.3 1,861.1 1,900.2 8,419.4 479.5 479.5 - - 7,939.9 2,890.3 5,049.6 15,110.2 980.8 - 980.8 - - 14,129.4 7,209.9 6,919.5 Overall Balance after Grants (26,842.0) (41,497.4) 3,087.8 2,429.3 (41,832.3) Financing Net External Borrowing Disbursements of Loans Debt Repayments Rescheduling Guysuco - Escrow A/C Overseas Deposit Net Domestic Borrowing 26,842.0 5,501.6 17,249.4 11,977.0 229.2 - - 41,497.4 8,653.7 20,492.9 11,888.1 48.9 - - (3,087.8) (585.5) 5,047.0 5,767.3 134.8 (2,429.3) 9,993.1 16,351.9 6,406.9 48.1 21,340.4 32,843.7 (2,502.3) (12,422.4) 41,832.3 17,108.2 28,840.0 11,779.9 48.1 - - 24,724.1 NB.
The 2018 numbers are the audited actual figures Figures: G$M Source: Ministry of Finance Page 93 of 113 Mid-Year Report 2019 Central Government Financial Operations APPENDIX E2 MID-YEAR FINANCIAL OPERATIONS OF THE NON - FINANCIAL PUBLIC SECTOR ITEM 2018 2019 ACTUAL BUDGET 2018 HY 2019 HY Non-Financial Public Sector Revenues Central Government Public Enterprises 206,401.0 217,020.1 (10,619.1) 240,841.0 238,326.7 2,514.3 103,118.1 109,184.9 (6,066.8) 116,400.1 115,873.8 526.3 2019 REVISED 239,309.9 238,399.5 910.4 Total Expenditure 261,326.1 306,856.4 108,812.4 125,704.0 307,195.2 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 Current Balance Capital Revenue Capital Expenditure Central Government Public Enterprises - 5.0 7.0 61,713.7 55,019.4 6,694.3 85,093.6 69,278.6 15,815.0 22,264.4 18,974.6 3,289.8 28,378.4 24,538.3 3,840.1 81,124.6 69,278.6 11,846.0 Overall Balance before Grants (54,925.0) (66,015.4) (5,694.3) (9,303.9)
 (67,878.2) Grants HIPC Relief Other 10,769.6 3,189.5 7,580.1 11,217.2 980.8 10,236.4 5,725.5 1,964.2 3,761.3 8,419.4 479.5 7,939.9 15,110.2 980.8 14,129.4 Overall Balance after Grants (44,155.4) (54,798.2) 31.2 (884.6) (52,768.0) Financing Net External Borrowing Net Domestic Borrowing 44,155.4 5,593.3 38,562.2 54,798.2 13,325.1 41,473.1 (31.2) (526.0) 494.9 884.6 11,625.6 (10,741.0) 52,768.0 21,779.6 30,988.4 Figures: G$M Source: Ministry of Finance Page 94 of 113 Mid-Year Report 2019 Financial Operations of
 the Non-Financial Public Sector APPENDIX E3 PUBLIC ENTERPRISES CASH FLOW ITEM Receipts Enterprises NIS Contributions Investment Income Total Expenditure Total non-interest expenditure Non-financial public enterprise Wages and Salaries Goods and Services Local taxes The NIS Taxes to Central Government Dividends and transfers 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 2019 REVISED - 57,745.8 44,010.7 7,859.4 36,112.9 38.4 12,592.6 1,142.5 - 125,658.9 96,848.9 17,333.3 79,425.2 90.4 26,245.6 1,664.4 900.0 Primary surplus or deficit (-) (9,805.5) 3,606.0 (5,526.2) 812.2 1,268.7 Interest External Domestic Current surplus or deficit (-) Capital expenditure Enterprises NIS less Government transfers 813.6 - 813.6 - (10,619.1) 1,091.7 - 1,091.7 2,514.3 540.6 - 540.6 - (6,066.8) 285.9 - 285.9 - 526.3 6,694.3 6,684.6 9.7 15,815.0 15,458.5 356.5 3,289.8 3,289.3 0.5 3,840.1 3,820.1 20.0 358.3 - 358.3 910.4 11,846.0 11,782.9 63.2 Overall surplus or deficit before special transfers(-) (17,313.4) (13,300.7) (9,356.7) (3,313.8)
 (10,935.6) Special transfers Capital transfer from CG for interest capitalisation Transfer residual from (+) / to (-) CG - - - - - - - - - - Overall surplus or deficit after special transfers (17,313.4) (13,300.7) (9,356.7) (3,313.8) (10,935.6) Financing External Domestic 17,313.4 91.7 17,221.7 13,300.7 4,671.4 8,629.3 9,356.7 59.5 9,297.2 3,313.8 1,632.4 1,681.4 10,935.6 4,671.4 6,264.2 Figures: G$M Source: Ministry of Finance Page 95 of 113 Mid-Year Report 2019 Public Enterprise Cash Flow APPENDIX E4
 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF NON-INTEREST CURRENT EXPENDITURE BY CHART OF ACCOUNT Acct Cod CHART OF ACCOUNT 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 2019 REVISED Total Statutory Expenditure 4,684,684,488 4,948,340,820 2,392,226,101 2,411,716,621 4,948,340,820 601 Total Statutory Employment Expenditure 4,502,685,455 4,704,740,820 2,346,615,186 2,335,118,477 4,704,740,820 6011 Statutory Wages and Salaries 6012 Statutory Benefits and Allowances 6013 Statutory Pensions and Gratuities 22,816,232 46,684,220 12,541,340 27,388,446 3,882,012 6,556,600 1,532,012 3,688,114 45,593,699 7,647,121 4,475,987,211 4,651,500,000 2,332,541,834 2,304,041,917 4,651,500,000 602 Statutory Payment to Dependants Pension Funds 181,999,033 243,600,000 45,610,915 76,598,144 243,600,000 6021 Statutory Payments to Dependants Pension Funds 181,999,033 243,600,000 45,610,915 76,598,144 243,600,000 Total Appropriation Expenditure 186,416,844,596 208,153,414,042 86,090,792,703 90,659,113,685 212,523,386,535 601 Total Employment Costs 60,146,473,216 70,926,173,404 27,991,009,553 31,914,250,085 70,926,173,404 611 Total Wages and Salaries 44,509,357,489 49,143,029,557 23,251,116,919 25,591,982,646 49,127,316,727 6111 Administrative 6112 Senior Technical 6113 Other Technical and Craft Skilled 6114 Clerical and Office Support 6,368,526,800 6,983,247,253 3,228,738,553 4,006,414,019 9,606,155,856 10,929,387,457 4,759,421,311 5,789,044,743 6,092,608,302 6,809,257,284 3,194,887,326 3,620,875,959
 6,824,129,780 8,239,722,460 3,704,698,547 4,203,676,499 6115 Semi-Skilled Operatives and Unskilled 5,289,438,014 5,979,496,816 2,815,094,795 3,014,079,335 6,980,836,859 10,930,001,125 6,807,810,070 8,243,179,656 5,973,456,086 6116 Contracted Employees 6117 Temporary Employees 613 Overhead Expenditure 6131 Other Direct Labour Costs 6132 Incentives 6133 Benefits and Allowances 6134 National Insurance 6135 Pensions 614 Other Employment Costs 6141 Other Employment Costs 9,224,343,729 9,103,635,067 4,984,334,489
 4,423,823,164 9,090,686,289 1,104,155,008 1,098,283,220 563,941,898 534,068,927 1,101,346,642 8,496,594,925 10,231,012,174 4,739,892,634 5,835,299,977 10,246,725,004 967,688,278 1,047,387,488 520,111,224 543,446,635 12,000,000 12,000,000 - 2,420,000 4,023,630,462 5,125,867,980 2,399,197,471 3,244,119,853 2,772,090,869 3,217,396,706 1,440,399,342 1,647,179,258 721,185,316 828,360,000 380,184,597 398,134,231 1,050,461,374 12,000,000 5,138,442,310 3,217,461,320 828,360,000 7,140,520,802 11,552,131,673 7,140,520,802 11,552,131,673 - - 486,967,462 11,552,131,673 486,967,462 11,552,131,673 620 Total Other Charges 126,270,371,380 137,227,240,638 58,099,783,150 58,744,863,600 141,597,213,131 621 Expenses Specific to the Agency 6211 Expenses Specific to the Agency 446,660,021 517,175,000 178,362,871 263,566,759 446,660,021 517,175,000 178,362,871 263,566,759 517,175,000 517,175,000 622 Materials, Equipment and Supplies 8,309,799,365 9,661,092,000 3,393,592,737 4,481,999,014 9,657,612,000 6221 Drugs and Medical Supplies 6222 Field Materials and Supplies 6223 Office Materials and Supplies 6224 Print and Non-Print Materials 623 Fuel and Lubricants 6231 Fuel and Lubricants 4,588,320,658 5,121,055,000 2,284,441,851 3,232,838,497 1,536,493,830 1,850,844,000 485,199,733 489,195,178 813,156,340 901,334,000 267,615,892 296,636,879 1,371,828,537 1,787,859,000 356,335,261 463,328,460 5,121,055,000 1,847,624,000 901,334,000 1,787,599,000 2,458,643,584 2,901,874,160 1,095,852,379
 1,221,895,067 2,901,874,160 2,458,643,584 2,901,874,160 1,095,852,379 1,221,895,067 2,901,874,160 624 Rental and Maintenance of Buildings 5,299,433,948 6,058,196,000 1,644,396,972 2,155,124,054 6,129,116,000 6241 Rental of Buildings 6242 Maintenance of Buildings 6243 Janitorial and Cleaning Supplies 625 Maintenance of Infrastructure 6251 Maintenance of Roads 6252 Maintenance of Bridges 6254 Maintenance of Sea and River Defences 6255 Maintenance of Other Infrastructure 1,317,694,933 1,622,842,000 679,319,468
Maintenance of Drainage and Irrigation Works 1,163,311,720 1,234,221,000 510,009,867 588,985,619 Figures: G$ Source: Ministry of Finance Page 96 of 113 Mid-Year Report 2019 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 Acct Cod CHART OF ACCOUNT 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 2019 REVISED Total Statutory Expenditure 626 Transport, Travel & Postage 6261 6262 6263 6264 6265 Local Travel and Subsistence Overseas Conferences and Official Visits Postage, Telex and Cablegrams Vehicle Spares and Service Other Transport, Travel and Postage 627 Utility Charges 6271 6272 Telephone Charges Electricity Charges 6273 Water Charges 5,487,459,372 5,754,353,000 2,007,100,350 2,143,682,059 5,770,193,000 2,408,133,755 2,436,984,000 852,692,512 1,067,286,924 2,436,564,000 296,687,162 338,968,000 136,781,845 187,986,242 76,879,628 86,663,000 26,378,807
Other Goods and Services Purchases 10,424,184,431 13,126,962,000 3,932,242,606
 4,975,066,601 13,177,328,830 6281 Security Services 6282 6283 Equipment Maintenance Cleaning and Extermination Services 6284 Other 4,820,402,835 5,739,242,000 1,932,160,220 2,207,564,025 1,244,314,919 1,674,659,000 569,493,650 528,933,535 514,432,393 539,546,000 171,399,750 192,121,669 3,845,034,284 5,173,515,000 1,259,188,986 2,046,447,372 5,757,614,880 1,674,659,000 539,546,000 5,205,508,950 629 Other Operational Expenses 8,655,928,568 10,158,956,000 3,450,414,860 3,813,653,967 10,987,354,000 6291 National and Other Events 6292 Dietary 6293 Refreshment and Meals 6294 Other 923,796,186 1,152,963,000 399,980,905 497,300,368 4,622,361,998 5,854,186,000 2,002,092,460 2,139,894,704 302,664,330 279,971,000 105,116,116 125,130,669 1,152,963,000 5,854,186,000 279,971,000 2,807,106,054 2,871,836,000 943,225,379 1,051,328,226 3,700,234,000 630 6301 6302 Education Subvention and Training 7,576,060,437 8,852,643,000 3,022,066,712 3,427,422,938 8,855,643,000 Education Subventions and Grants Training (Including Scholarships) 4,096,641,018 4,551,200,000 1,940,985,577 2,096,264,781 3,479,419,419 4,301,443,000 1,081,081,135 1,331,158,157 4,551,200,000 4,304,443,000 631 Rates and Taxes and Subventions to Local Authorities 344,660,567 999,770,000 129,328,102 514,730,942 1,003,191,613 6311 6312 Rates and Taxes Subventions to Local Authorities 203,491,807 281,870,000 114,710,432 129,912,167 141,168,760 717,900,000 14,617,670 384,818,775 285,291,613 717,900,000 632 Subsidies and
 Contributions to Local & Int Org 50,463,634,344 48,608,152,478 26,982,855,696 22,290,304,739 52,023,658,528 6321 6322 6323 Subsidies and Contributions to Local Organisations 41,647,077,546 36,982,049,000 22,750,191,524 17,413,454,703 37,079,549,000 Subsidies and Contributions to International Organisations 1,246,549,907 1,279,649,478 1,059,933,511 1,125,211,071 1,272,655,528 Constitutional Agencies 7,570,006,891 10,346,454,000 3,172,730,661 3,751,638,965 13,671,454,000 633 Refunds of Revenue 6331 Refunds of
 Revenue 634 Pensions 6341 6342 6343 Non-Pensionable Employees Pension Increases Old Age Pensions and Social Assistance 635 Other Public Debt 6351 Other Public Debt Grand Total - - - - - - - - - - 191,101,529,084 213,101,754,862 88,483,018,804 93,070,830,306 217,471,727,355 Figures: G$ Source: Ministry of Finance Page 97 of 113 Mid-Year Report 2019 Central Government Abstract of Non-Interest Current Expenditure by Chart of Account APPENDIX E5 NON-INTEREST CURRENT EXPENDITURE BY AGENCY AGENCY 2018 2019 ACTUAL BUDGET 2018 HY 2019 HY Ministry of the Presidency 7,450,505 9,061,127 3,151,875 3,590,698 Office of the Prime Minister 612,104 759,675 293,637 393,408 Ministry of Finance 23,628,114 30,964,778 7,695,460 8,727,488 Ministry of Foreign Affairs 5,267,578 6,302,654 2,847,236 2,994,342 Parliament Office 1,460,949 1,612,771 694,591 694,038 Audit Office of Guyana 766,357 854,614 378,509 418,218 Public and Police Service Commission 92,012 134,717 34,010 56,092 Teaching Service Commission 91,076 108,595 38,755 42,174 Guyana Elections Commission 2,739,452 4,893,061 822,604 1,117,757 Ministry of Indigenous
 People's Affairs 951,990 1,115,286 349,535 425,160 Ministry of Agriculture 17,802,662 9,702,381 11,412,432 4,832,018 Ministry of Business 1,285,050 1,521,636 645,606 675,310 Ministry of Natural Resources 755,767 873,271 309,962 436,215 Ministry of Public Infrastructure 7,857,577 8,710,288 3,915,723 4,451,435 Ministry of Public Telecommunication 2,096,199 2,174,906 1,037,294 1,278,980 Ministry of Education 16,151,478 18,069,898 6,748,953 7,743,456 Ministry of Communities 1,723,251 2,772,199 817,405 1,254,342
 Ministry of Public Health 20,779,065 22,051,479 9,252,772 10,460,795 Ministry of Social Protection 15,805,269 17,736,593 7,755,766 8,566,217 Ministry of Public Security 15,169,565 17,778,002 7,124,622 8,052,174 Ministry of Legal Affairs 638,607 861,730 285,565 498,822 Figures: G$'000 Source: Ministry of Finance Page 98 of 113 Mid-Year Report 2019 Non-Interest Current Expenditure by Agency APPENDIX E5 NON-INTEREST CURRENT EXPENDITURE BY AGENCY AGENCY 2018 2019 ACTUAL BUDGET 2018 HY 2019 HY Guyana Defence Force 11,504,101 12,977,028 5,656,610 5,514,450 Supreme Court 1,729,954 1,850,404 818,161 928,224 Public Prosecutions 160,244 216,398 77,387 84,543 Office of the Ombudsman 56,121 73,181 28,443 31,074 Public Service Appellate Tribunal 46,884 62,828 25,009 29,875 Ethnic Relations Commission 115,785 175,195 31,844 87,697 Judicial Service Commission 9,981 10,020 1,830 1,830 Rights Commissions of Guyana 131,411 145,137 51,436 50,584 Public Procurement Commission 169,781 209,533 169,786 209,533 Region 1: Barima / Waini 2,293,677 2,823,165 757,062 1,143,754 Region 2: Pomeroon / Supenaam 3,452,273 4,047,772 1,724,786 1,879,217 Region 3: Essequibo Islands / West Demerara 4,935,064 5,746,028 2,541,122 2,962,253 Region 4: Demerara / Mahaica 5,995,866 6,617,337 3,092,250 3,606,667 Region 5: Mahaica / Berbice 2,816,543 3,286,535 1,389,067 1,754,867 Region 6: East Berbice / Corentyne 6,037,497 6,921,286 2,941,263 3,499,812 Region 7: Cuyuni / Mazaruni 2,261,919 2,585,214
 920,190 1,199,984 Region 8: Pataro / Siparuni 1,324,212 1,711,586 336,404 615,376 Region 9: Upper Takatu / Upper Essequibo 1,923,848 2,241,450 844,249 1,066,140 Region 10: Upper Demerara / Upper Berbice 3,011,739 3,341,998 1,463,809 1,695,811 GRAND TOTAL 191,101,529 213,101,756 88,483,019 93,070,830 Figures: G$'000 Source: Ministry of Finance Page 99 of 113 Mid-Year Report 2019 Non-Interest Current Expenditure by Agency APPENDIX E6 NON-INTEREST CURRENT EXPENDITURE BY SECTOR SECTOR 2018 ACTUAL GENERAL
 ADMINISTRATION SECTOR 43,060,138 2019 BUDGET 55,807,278 2018 HY 16,306,211 2019 HY 18,459,376 Ministry of the Presidency 7,450,505 9,061,127 3,151,875 3,590,698 Office of the Prime Minister 612,104 759,675 293,637 393,408 Ministry of Finance 23,628,114 30,964,778 7,695,460 8,727,488 Ministry of Foreign Affairs 5,267,578 6,302,654 2,847,236 2,994,342 Parliament Office 1,460,949 1,612,771 694,591 694,038 Office of the Auditor General 766,357 854,614 378,509 418,218 Public and Police Service Commission 92,012 134,717 34,010 56,092 Teaching Service Commission 91,076 108,595 38,755 42,174 Guyana Elections Commission 2,739,452 4,893,061 822,604 1,117,757 Ministry of Indigenous People's Affairs 951,990 1,115,286 349,535 425,160 ECONOMIC SERVICES SECTOR 19,843,479 12,097,288 12,368,000 5,943,543 Ministry of Agriculture 17,802,662 9,702,381 11,412,432 4,832,018 Ministry of Business 1,285,050 1,521,636 645,606 675,310 Ministry of Natural Resources 755,767 873,271 309,962 436,215 INFRASTRUCTURE SECTOR 9,953,776 10,885,194 4,953,018 5,730,415 Ministry of Public Infrastructure 7,857,577 8,710,288 3,915,723 4,451,435 Ministry of Public Telecommunication 2,096,199 2,174,906 1,037,294 1,278,980 SOCIAL SERVICES SECTOR 54,459,063 60,630,169 24,574,896 28,024,810 Ministry of Education 16,151,478 18,069,898 6,748,953 7,743,456 Ministry of Communities 1,723,251 2,772,199 817,405 1,254,342 Ministry of Public Health 20,779,065 22,051,479 9,252,772 10,460,795 Ministry of Social
 Protection 15,805,269 17,736,593 7,755,766 8,566,217 Figures: G$'000 Source: Ministry of Finance Page 100 of 113 Mid-Year Report 2019 Non-Interest Expenditure by Sector APPENDIX E6 NON-INTEREST CURRENT EXPENDITURE BY SECTOR SECTOR 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY PUBLIC SAFETY SECTOR 29,732,434 34,359,456 14,270,693 15,488,806 Ministry of Public Security 15,169,565 17,778,002 7,124,622 8,052,174 Ministry of Legal Affairs 638,607 861,730 285,565 498,822 Guyana Defence Force 11,504,101 12,977,028 5,656,610
 5,514,450 Supreme Court Public Prosecutions 1,729,954 1,850,404 818,161 928,224 160,244 216,398 77,387 84,543 Office of the Ombudsman 56,121 73,181 28,443 31,074 Public Service Appellate Tribunal 46,884 62,828 25,009 29,875 Ethnic Relations Commission 115,785 175,195 31,844 87,697 Judicial Service Commission 9,981 10,020 1,830 1,830 Rights Commissions of Guyana 131,411 145,137 51,436 50,584 Public Procurement Commission 169,781 209,533 169,786 209,533 REGIONAL DEVELOPMENT SECTOR 34,052,639 39,322,371 16,010,202 19,423,880 Region 1: Barima / Waini 2,293,677 2,823,165 757,062 1,143,754 Region 2: Pomeroon / Supenaam 3,452,273 4,047,772 1,724,786 1,879,217 Region 3: Essequibo Islands / West Demerara 4,935,064 5,746,028 2,541,122 2,962,253 Region 4: Demerara / Mahaica 5,995,866 6,617,337 3,092,250 3,606,667 Region 5: Mahaica / Berbice 2,816,543 3,286,535 1,389,067 1,754,867 Region 6: East Berbice / Corentyne 6,037,497 6,921,286 2,941,263 3,499,812 Region 7: Cuyuni / Mazaruni 2,261,919 2,585,214 920,190 1,199,984 Region 8: Pataro / Siparuni 1,324,212 1,711,586 336,404 615,376 Region 9: Upper Takatu / Upper Essequibo 1,923,848 2,241,450 844,249 1,066,140 Region 10: Upper Demerara / Upper Berbice 3,011,739 3,341,998 1,463,809 1,695,811 - - - - GRAND TOTAL 191,101,529 213,101,756 88,483,019 93,070,830 Figures: G$'000 Source: Ministry of Finance Page 101 of 113 Mid-Year Report 2019 Non-Interest Expenditure by Sector APPENDIX E7 MID-YEAR GOVERNMENT SUMMARY OF CAPITAL
 EXPENDITURE BY SECTOR AND TYPE OF FINANCING SECTOR AND SOURCE 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 1.0 Agriculture 1.1 Specific 1.2 Non-Specific 3.0 Fishing 3.1 Specific 3.2 Non-Specific 3,308.503 5,013.977 1,680.879 1,518.893 775.692 2,532.811 55.448 0.000 55.448 1,795.584 3,218.393 63.160 0.000 63.160 368.194 1,312.685 0.000 0.000 0.000 225.325 1,293.568 8.317 0.000 8.317 5.0 Power Generation 3,450.733 4,452.000 949.688 3,502.084 5.1 Specific 5.2 Non-Specific 6.0 Manufacturing 6.1 Specific 6.2 Non-Specific
 2,832.246 3,750.000 618.487 704.054 170.324 533.730 702.000 352.148 0.000 352.148 530.446 419.242 306.025 120.889 185.136 3,079.556 422.528 35.291 0.000 35.291 7.0 Construction 22,310.487 23,050.924 7,884.256 7,865.922 7.1 Specific 7.2 Non-Specific 10,722.316 9,694.000 11,588.170 13,356.924 3,428.345 4,455.912 3,378.304 4,487.618 8.0 Transport & Communication 5,038.052 6,013.870 1,239.565 3,432.705 8.1 Specific 8.2 Non-Specific 9.0 Housing 9.1 Specific 9.2 Non-Specific 2,801.990 2,236.062 3,109.500 2,904.370 394.963 1,891.500 240.000 154.963 919.500 972.000 373.066 866.499 215.229 194.890 20.339 2,010.842 1,421.863 395.309 270.139 125.170 10.0 Environment and Pure Water 3,566.034 4,314.409 1,347.449 1,520.596 10.1 Specific 10.2 Non-Specific 11.0 Education 11.1 Specific 11.2 Non-Specific 12.0 Health 12.1 Specific 12.2 Non-Specific 13.0 Culture/Youth 13.1 Specific 13.2 Non-Specific 2,358.691 1,207.343 2,936.400 1,378.009 2,950.231 5,525.604 524.683 2,425.547 1,680.000 3,845.604 2,670.575 4,206.917 352.690 2,317.885 1,300.000 2,906.917 676.741 1,386.569 0.000 676.741 0.000 1,386.569 14.0 National Security and Defence 1,033.288 1,012.773 14.1 Specific 14.2 Non-Specific Figure: G$M Source: Ministry of Finance Page 102 of
 113 Mid-Year Report 2019 Summary of Capital Expenditure by Sector and Type of Financing APPENDIX E7 MID-YEAR GOVERNMENT SUMMARY OF CAPITAL EXPENDITURE BY SECTOR AND TYPE OF FINANCING SECTOR AND SOURCE 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 15.0 Public Safety 2,829.602 4,040.331 556.093 1,344.871 15.1 Specific 15.2 Non-Specific 16.0 Tourist Development 16.1 Specific 16.2 Non-Specific 632.040 2,197.561 0.500 0.000 0.500 750.000 3,290.331 3.550 0.000 3.550 274.723 281.370 0.500 0.000 0.500 419.720 925.150
 3.315 0.000 3.315 17.0 Administration 3,361.054 5,023.272 911.960 1,068.144 17.1 Specific 17.2 Non-Specific 285.724 3,075.330 888.102 4,135.170 18.0 Financial Transfers 956.961 1,167.169 17.1 Specific 17.2 Non-Specific 19.0 Social Welfare 19.1 Specific 19.2 Non-Specific 36.019 920.941 262.000 905.169 1,712.182 1,760.381 408.794 1,303.388 617.683 1,142.698 122.744 789.216 523.805 16.851 506.954 1,031.845 291.261 740.584 55.789 1,012.355 596.059 8.252 587.807 601.645 11.737 589.908 20.0 Overall Total 55,019.407 69,278.554 18,974.592 24,538.322 20.1 Specific 20.2 Non-Specific 22,141.211 27,702.769 6,908.098 10,895.079 32,878.196 41,575.785 12,066.495 13,643.244 Figure: G$M Source: Ministry of Finance Page 103 of 113 Mid-Year Report 2019 Summary of Capital Expenditure by Sector and Type of Financing AGENCY ACTUAL 2018 APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME BUDGET 2019 MID-YEAR 2019 P
1,778,724 5,648,132 7,426,856 23,650 1,419,180 8,869,686 1,954,153 7,082,911 9,037,064 24,063 3,366,239 12,427,366 960,623 2,619,050 3,579,673 11,025 634,918 4,225,616 768,811
 1,259,927 2,028,738 23,650 412,989 2,465,377 1,317,068 2,088,288 24,063 451,251 2,563,602 538,944 896,452 11,025 100,322 1,007,799 05 Ministry of Presidency 051 Policy Development and Administration 052 Defence and National Security 053 Public Service Management 054 Natural Resource Management 055 Citizenship and Immigration Services 056 Social Cohesion 057 Environmental Management and Compliance 058 Cultural Preservation and Conservation 059 Youth 05A Sports 05B Petroleum and Energy Management 02 Office of the Prime Minister 021 Prime Minister's Secretariat 88,120 200,652 180,336 1,316,306 268,456 1,516,958 - - - 171,116 170,665 209,708 202,310 380,824 372,975 - 894,857 894,857 135,653 197,656 46,051 594,324 545,916 444,447 729,977 743,572 490,498 - 88,499 88,499 523,606 523,606 612,104 612,104 - - - - - - - - - - - - 40,399 131,696 - 66,857 3,432 308,855 1,648,654 - 447,681 376,407 771,220 21,860 261,268 - 212,907 179,068 86,566 1,696,290 - 535,422 212,456 108,426 1,957,558 - 748,329 391,524 108,030 1,002,887 46,532 1,270,354 1,316,886 134,810 294,926 226,043 - - 144,727 144,727 - 864,787 1,038,498 716,540 - 756,831 756,831 167,457 222,258 50,992 20,591 84,356 84,356 788,109 586,934 519,401 70,311 955,566 809,192 570,393 90,902 675,319 675,319 759,675 759,675 23,000 18,943 - 802,093 444,601 263,009 133,672 236,997 659,400 333,273 131,426 1,976,501 - 1,550,422 836,125 1,579,895 1,089,238 1,046,189 1,229,793 424,175 357,508 10,531 132,317 - 95,438 92,150 28,318 87,742
 110,716 25,312 20,591 50,006 551,236 - 87,041 59,509 612,766 365,467 180,986 159,721 13,375 60,536 683,553 - 182,479 151,658 641,084 453,210 291,702 185,034 33,966 149,125 149,125 908,800 908,800 39,888 39,888 353,520 353,520 393,408 393,408 - - - - - - - - - - - - - - - - - - - - - - - - 7,008 12,657 67,544 696,210 0 - 3,629 210,598 186,108 362,257 55,545 696,629 13,378 73,026 155,116 3,640 - 75,703 75,703 - 466,588 364,728 340,149 37,605 469,111 469,111 03 Ministry of Finance 7,744,696 11,225,432
 18,970,128 4,657,986 4,401,221 28,029,336 12,220,612 13,849,066 26,069,678 4,895,100 4,976,601 35,941,379 812,447 5,534,401 6,346,848 2,380,640 1,708,343 10,435,832 031 Policy and Administration 7,281,577 6,969,840 14,251,418 - 4,271,157 18,522,574 11,709,388 8,634,993 20,344,381 - 4,759,652 25,104,033 571,219 3,263,473 3,834,692 - 1,705,594 5,540,286 032 Public Financial Management 463,119 4,255,592 4,718,710 4,657,986 130,065 9,506,761 511,224 5,214,073 5,725,297 4,895,100 216,949 10,837,346 241,228 2,270,928 2,512,156 2,380,640 2,749 4,895,545 04 Ministry of Foreign Affairs 041 Development of Foreign Policy 042 Foreign Policy Promotion 043 Development of Foreign Trade Policy 07 Parliament Office 071 National Assembly 08 Auditor General 081 Office of the Auditor General 09 Public and Police Service Commission 091 Public and Police Service Commission 10 Teaching Service Commission 101 Teaching Service Commission 11 Guyana Elections Commission 111 Elections Commission 112 Elections Administration 17 Ministry of Indigenous People's Affairs 171 Policy Development & Administration 2,046,433 3,221,145 5,267,578 284,787 1,566,197 1,850,984 1,738,250 1,640,956 3,379,206 23,396 13,992 37,388 - - - - - - - - - - 1,460,949 1,460,949 1,460,949 1,460,949 766,357 766,357 766,357 766,357 92,012 92,012 92,012 92,012 91,076 91,076 91,076 91,076 2,739,452 2,739,452 2,739,452 2,739,452 - - 168,725 783,265 951,990 168,725 783,265 951,990 21 Ministry of Agriculture 728,951 17,073,712
 17,802,663 211 Ministry Administration 212 Crops and Livestock Support Services 533,634 16,615,474 17,149,108 - - - 213 Fisheries 83,453 71,412 154,865 214 Hydrometeorological Services 111,864 386,825 498,689 25 Ministry of Business 251 Policy Development and Administration 252 Business Development, Support and Promotion 152,983 1,132,067 1,285,050 100,769 158,178 258,947 20,342 555,998 576,340 253 Consumer Protection 9,004 78,541 87,545 - 428,990 5,696,568 2,395,509 3,907,145 6,302,654 162,011 266,978 - -
 55,460 55,460 - 17,519 17,519 - 2,995 2,995 - 9,469 9,469 - 148,060 148,060 - - 2,012,996 3,646,184 291,259 2,042,203 2,160,370 1,728,885 2,451,629 3,771,088 37,388 62,047 17,890 79,937 1,516,410 1,516,410 783,876 783,876 95,007 95,007 100,544 100,544 2,887,512 2,887,512 - - - - - - - - - - - - 1,612,771 1,612,771 854,614 854,614 134,717 134,717 108,595 108,595 1,612,771 1,612,771 854,614 854,614 134,717 134,717 108,595 108,595 4,893,061 4,893,061 4,893,061 4,893,061 - - 1,161,091 2,113,081 1,161,091 2,113,081 215,875 215,875 899,411 1,115,286 899,411 1,115,286 - 3,647,469 21,450,132 746,392 8,955,989 9,702,381 2,173,231 19,322,340 1,398,068 1,398,068 55,448 20,722 - 210,313 519,412 524,014 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 535,627 6,838,281 1,189,072 1,805,270 2,994,342 52,912 482,715 - 87,500 87,500 17,395 17,395 11,600 11,600 500 500 478,000 478,000 - 2,504,541 4,253,803 156,000 1,010,227 948,779 853,492 1,104,779 1,863,720 79,937 22,844 2,999 25,843 1,700,271 1,700,271 872,009 872,009 146,317 146,317 109,095 109,095 5,371,061 5,371,061 - - - - - - - - - - - - 694,038 694,038 694,038 694,038 418,218 418,218 418,218 418,218 56,092 56,092 56,092 56,092
 42,174 42,174 42,174 42,174 1,117,757 1,117,757 1,117,757 1,117,757 - - 815,348 1,930,634 120,120 305,040 425,160 815,348 1,930,634 120,120 305,040 425,160 4,614,849 14,317,230 424,115 4,407,903 4,832,018 1,077,653 1,945,713 303,026 172,566 475,592 3,423,146 11,509,124 63,160 50,890 245,352 617,041 - 52,121 68,968 3,989,004 3,989,004 33,033 213,300 85,154 282,268 1,136,025 2,657,660 91,394 583,916 675,310 112,500 397,229 1,014,475 1,755,588 5,500 106,157 52,641 22,830 4,313 63,197 115,838 310,504 333,335
 47,944 52,256 - 91,640 3,085,982 9,455 1,114,234 82,185 1,945,905 - - 25,843 5,768 699,805 5,768 699,805 - 13,650 431,868 13,650 431,868 - 1,102 57,195 1,102 57,195 - - 21 21 42,195 42,195 103,397 1,221,154 103,397 1,221,154 - - - 412,009 837,169 412,009 837,169 - 1,506,869 6,338,887 178,982 654,574 1,288,024 5,277,027 8,317 93,471 31,546 313,815 - 137,879 813,189 23,776 139,613 105,293 438,628 5,495 57,751 - - - - - - - - - - - - - - - - - - - - - - - - - - Figures: G$'000 Source: Ministry of Finance Page 104 of 113 Mid-Year Report 2019 Details of Expenditure: General Summary by Programme APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME BUDGET 2019 MID-YEAR 2019 T O T A L A P P R ACTUAL 2018 500 - 362,717 24,962 370,174 395,136 AGENCY E M P L O Y M E N T C O S T S O T H E R C H A R G E S 254 Tourism Development and Promotion 26 Ministry of Natural Resources 261 Policy Development and Administration 262 Natural Resource Management 22,868 339,349 362,217 375,625 380,143 755,768 162,587 131,911 294,498 190,662 127,681 318,343 263 Environmental Management - - - 264 Petroleum Management 22,376 120,551 142,927 32 Ministry of Public
 Infrastructure 321 Policy Development and Administration 322 Public Works 323 Transport 33 Ministry of Public Telecommunication 331 Policy Development and Administration 332 Public Telecommunications 333 Tourism Development 709,973 7,147,604 7,857,577 79,497 3,928,296 4,007,793 627,506 3,135,987 3,763,493 2,970 83,322 86,292 96,835 1,999,364 2,096,199 87,030 - - 123,684 1,837,568 210,714 1,837,568 - - 334 Industry Innovations 9,805 38,112 47,917 40 Ministry of Education 401 Policy Development and
 Administration 5,001,992 11,149,485 16,151,477 568,423 990,310 1,558,733 402 Training and Development 415,408 1,417,788 1,833,196 403 Nursery Education 439,078 1,432,222 1,871,300 404 Primary Education 1,084,166 1,994,219 3,078,385 405 Secondary Education 1,977,617 1,734,853 3,712,470 406 Post-Secondary/Tertiary Education 407 Cultural Preservation and Conservation 408 Youth 409 Sports 517,300 3,580,092 4,097,392 - - - - - - - - - 42 Ministry of Communities 421 Sustainable Communities Management 422 Sustainable Communities Development 350,654 1,372,598 1,723,252 199,679 469,700 669,379 150,975 902,898 1,053,873 43 Ministry of Public Health 431 Policy Development and Administration 6,646,985 14,132,080 20,779,065 481,065 1,023,457 1,504,522 432 Diseases Control 368,009 1,450,513 1,818,522 433 Family Health Care Services 434 Regional and Clinical Services 435 Health Sciences Education 436 Standards and Technical Services 437 Disability and Rehabilitation Services 226,422 838,295 1,064,717 5,092,575 9,613,002 14,705,577 128,014 447,341 575,355 179,272 590,996 770,268 171,628 168,476 340,104 49 Ministry of Social Protection 491 Policy Development & Administration 939,880 14,865,389 15,805,269 162,912 132,239 295,151 492 Social Services 399,880 13,967,520 14,367,400 493 Labour Administration 121,193 435,070 494 Child Care and Protection 255,895 330,561 556,263 586,456 E X P E N D I T U R E - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 371,901 1,127,669 340,367 532,904 873,271 371,901 - - - - 666,399 318,343 - 142,927 144,149 196218 - - 202,602 330,302 - - 346,751 526,520 - - 23,662,890 31,520,467 818,683 7,891,605 8,710,288 2,558,464 15,235,417 5,869,009 - 6,566,257 18,998,910 5,955,301 83,582 731,687 3,414 4,450,977 3,350,784 89,844 4,534,559 4,082,471 93,258 2,454,482 4,550,681 116,969 2,057,937 2,174,906 5,603 2,447,443 0 1,437 - 216,317 4,285,010 - 49,354 106,479 - - 10,490 153,679 1,847,610 - 56,648 260,158 1,847,610 - 67,138
1,847,610 - 56,648 260,158 1,847,610 - - - - - - - - - - - - - - - - - 4,268,823 5,992,074 403,622 2,368,577 2,772,199 1,030,052 1,699,431 3,238,771 4,292,644 217,415 186,207 1,269,341 1,486,756 1,099,236 1,285,443 - 1,830,199 22,609,264 6,672,494 15,378,985 22,051,479 193,640 333,780 177,176 1,698,163 2,152,302 1,241,893 560,515 428,340 262,818 1,174,276 1,538,783 985,147 1,734,791 1,967,123 1,247,965 1,003,904 15,709,480 4,917,683 10,170,569 15,088,252 33,443 60,408 27,847 - 608,799 830,676 367,952 132,615 184,829 185,694 520,846 766,526 222,838 653,461 951,355 408,532 422,782 16,228,051 1,100,565 16,636,028 17,736,593 127,111 132,701 3,636 159,334 - 422,262 14,500,101 559,899 745,790 220,883 486,449 141,449 251,784 131,275 352,158 15,657,116 16,143,565 494,487 353,150 635,936 604,934 U
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,550 398,686 11,610 162,271 173,881 572,972 1,446,243 189,238 246,977 436,215 437,000 135,972 - - 783,751 662,492 - - 81,422 107,816 - - 82,758 164,219 - - 164,180 272,035 - - 26,212,032 34,922,320 443,198 4,008,237 4,451,435 5,619,800 17,823,889 2,768,343 10,154,359 21,906,360 2,861,601 42,398 398,888 1,911 2,602,352 1,378,895 26,991 2,644,750
 1,777,783 28,902 2,262,895 4,437,801 59,051 1,219,929 1,278,980 68,500 2,184,895 - 9,500 328,658 4,032,505 - 76,638 50,751 - - 8,300 60,592 1,140,982 - 18,356 111,343 1,140,982 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,315 177,196 - 226,234 662,449 216,787 380,967 9,448 281,482 - - - - 10,710,579 15,162,014 2,572,066 5,216,816 7,872,317 9,650,099 266,197 295,100 - 2,077,215 3,356,195 5,466 2,070,334 -
 1,415 - 116,809 3,211,315 - 28,071 604,868 8,348,324 115,697 996,671 56,162 756,077 5692.316 580,833 4,758 1,710,990 267,200 2,120,667 155,358 2,183,086 - - - - - - - 1,886,414 3,140,756 289,330 1,101,789 1,597,084 2,038,967 - 659,981 11,120,776 145,047 37,350 238,425 980,941 984,725 662,145 220,580 7,522,679 2,714 297,414 14,832 443,598 1,034 229,274 - 239,348 8,805,565 204,273 359,599 - - 7,827,530 297,935 35,074 320,501 9,843,138 5,323,378 15,166,516 3,048 2,706,731 17,876,295 11,549,912 6,198,912
 17,748,824 29,178 3,868,331 21,646,333 6,072,320 1,959,802 8,032,122 20,052 1,315,894 9,368,068 54 Ministry of Public Security 541 Policy Development and Administration 542 Police Force 543 Prison Service 384,381 317,135 701,516 - 7,636,019 3,496,591 11,132,610 3,048 891,310 983,491 1,874,801 544 Police Complaints Authority 13,159 7,104 20,263 545 Fire Service 790,360 424,940 1,215,300 546 Customs Anti-Narcotics Unit - 633,493 8,595 855,000 - 1,769,208 20,583 - - 2,500 578,130 30,000 1,440,483 13,878,467 3,933,699 44,179 1,999,800 349,705 233,290 4,756,810 486,128 6,916 479,427 109,750 132,425 1,172,840 445,300 2,197 165,204 41,836 365,715 5,929,650 931,427 9,113 644,631 151,586 - 416,536 782,252 5,844 142,430 6,077,923 - 206,413 1,137,841 14,208 988 24,308 - - 536,427 1,181,058 13,100 164,686 - - - - Figures: G$'000 Source: Ministry of Finance Page 105 of 113 Mid-Year Report 2019 Details of Expenditure: General Summary by Programme AGENCY ACTUAL 2018 APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME BUDGET
 2019 MID-YEAR 2019 - H
787,385 274,024 587,706 861,730 433,300 64,741 268,923 20,421 - 7,827 36,819 205,199 24,179 - 307,362 33,406 242,533 4,405 - 315,189 70,225 447,732 28,584 - O P R I E A X T P E E D N C D A I P T I U T R A E L - 148,779 143,570 718 3,997 494 - - 1,023,863 12,527,964 6,781,155 6,195,873 12,977,028 1,023,863 12,527,964 6,781,155 6,195,873 12,977,028 - 310,376 2,040,330 310,376 2,040,330 - 11,811 11,811 - 1,669 1,669 - 2,915 2,915 - - - - - - - 1,012 1,012 - 172,055 172,055 57,790 57,790 49,799 49,799 115,785 115,785 9,981 9,981 132,423 132,423 7,880 177,661 7,880 - 177,661 - - - - - - - - - - - - - - - - - - 199,474 385,679 1,279,498 738,052 - 53,887 38,705 800,568 230,267 - 414,134 269,786 514,258 501,560 - 468,021 308,491 1,314,826 731,827 - 382,670 3,834,943 2,005,229 2,042,542 4,047,771 45,968 39,649 68,214 116,219 112,619 - 250,142 386,371 194,640 2,049,402 954,389 102,711 89,317 43,289 1,397,255 372,657 118,786 325,289 114,373 917,246 566,848 221,497 414,606 157,662 2,314,501 939,505 463,725 5,398,789 3,149,336 2,596,692 5,746,028 11,496 108,958
 118,929 149,870 74,471 218,491 469,929 246,720 3,119,730 1,343,919 122,716 93,627 20,346 2,400,783 511,864 114,118 304,600 148,410 1,045,526 984,038 236,834 398,227 168,756 3,446,309 1,495,902 E X P E N D I T U R E - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - O P R I E A X T P E E D N C D A I P T I U T R A E L 217,510 206,810 900 9,100 700 - 1,079,240 143,407 355,415 498,822 521,999 71,125 456,832 29,284 - 6,638 21,404 103,018 12,348 - 146,283 13,074 195,118 940 - 152,921
 34,477 298,136 13,288 - 1,042,500 14,019,528 3,548,719 1,965,731 5,514,450 1,042,500 14,019,528 3,548,719 1,965,731 5,514,450 458,478 2,308,882 458,478 2,308,882 3,426 3,426 1,042 1,042 - - 19,613 19,613 - - 12,755 12,755 219,824 219,824 74,223 74,223 62,828 62,828 194,808 194,808 10,020 10,020 157,892 157,892 9,400 218,933 9,400 218,933 - - - - - - - - - - - - - - - - E X P E N D I T U R E - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 52 Ministry of Legal Affairs 201,826 436,780 638,606 521 Main Office 522
 Ministry Administration 523 Attorney General's Chambers 524 State Solicitor 525 Deeds Registry 7,078 31,119 147,770 15,859 - 282,652 32,903 117,156 4,068 - 289,730 64,022 264,926 19,927 - 53 Guyana Defence Force 6,023,449 5,480,652 11,504,101 531 Defence and Security Support 6,023,449 5,480,652 11,504,101 55 Supreme Court 551 Supreme Court of Judicature 56 Public Prosecutions 561 Public Prosecutions 57 Office of the Ombudsman 571 Ombudsman 58 Public Service Appellate Tribunal 581 Public Service Appellate Tribunal
 59 Ethnic Relations Commission 591 Ethnic Relations Commission 60 Judicial Service Commission 601 Judicial Service Commission 61 Rights Commissions of Guyana 611 Rights Commissions of Guyana 62 Public Procurement Commission 621 Public Procurement Commission - - - - - - - - - - - - - - - - Region 1: Barima/Waini 711 Regional Administration and Finance 712 Public Works 713 Education Delivery 714 Health Services 715 Agriculture 996,740 1,296,937 2,293,677 45,375 36,279 719,856 195,230 141,922 255,312 187,297 291,591 455,828 1,175,684 443,875 639,105 - 72 Region 2: Poomeroon/Supernaam 721 Regional Administration and Finance 722 Agriculture 723 Public Works 1,835,080 1,617,193 3,452,273 100,866 103,308 82,172 36,846 264,549 89,580 204,174 346,721 126,426 724 Education Delivery 1,254,767 678,417 1,933,184 725 Health Services 360,429 481,340 841,769 73 Region 3: Essequibo Islands/ West Demerara 731 Regional Administration and Finance 732 Agriculture 733 Public Works 2,728,931 2,206,133 4,935,064 104,847 83,983 17,643 102,147 276,988 110,148 206,994 360,971 127,791 734 Education Delivery 2,079,421 890,439 2,969,860 735 Health Services 443,037 826,412 1,269,449 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 58,462 557,284 48,288 201,209 899 8,576 700 - - 35,376 306,712 13,988 - 118,840 5,633,290 118,840 5,633,290 - 118,270 1,046,494 118,270 1,046,494 - 199 199 - 682 682 - - - - 84,742 84,742 31,756 31,756 29,875 29,875 5,599 93,296 5,599 93,296 - - - - 1,830 1,830 808 51,392 808 51,392 - 9,400 218,933 9,400 - 218,933 92,529 1,236,284 11,320 27,553 38,337 15,319 - 258,883 74,177 582,474 320,749 - 253,886 2,133,103 14,633 37,567 75,681 124,536 168,071 148,533 61,366 1,094,938 64,638 597,025
 217,879 3,180,133 15,842 56,979 55,472 146,620 239,047 111,609 49,245 1,785,890 40,341 896,967 Figures: G$'000 Source: Ministry of Finance Page 106 of 113 Mid-Year Report 2019 Details of Expenditure: General Summary by Programme AGENCY E M P L O Y M E N T C O S T S O T H E R C H A R G E S ACTUAL 2018 - APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME BUDGET 2019 74 Region 4: Demerara/Mahaica 741 Regional Administration and Finance 742 Agriculture 743 Public Works 3,209,718 2,786,148 5,995,866 82,358 102,142 26,916 134,196 250,949 113,600 216,554 353,091 140,516 744 Education Delivery 2,810,579 1,232,573 4,043,152 745 Health Services 187,723 1,054,830 1,242,553 75 Region 5: Mahaica/Berbice 1,474,646 1,341,897 2,816,543 751 Regional Administration and Finance 752 Agriculture 753 Public Works 754 Education Delivery 755 Health Services 62,488 5,626 41,448 1,081,839 283,245 105,841 218,111 137,007 465,273 415,664 168,329 223,737 178,455 1,547,112 698,909 76 Region 6: East Berbice/ Corentyne 761 Regional
 Administration and Finance 762 Agriculture 763 Public Works 3,135,199 2,902,297 6,037,496 63,637 80,251 40,982 87,821 656,590 228,139 151,458 736,841 269,121 764 Education Delivery 2,390,614 806,836 3,197,450 765 Health Services 559,715 1,122,911 1,682,626 77 Region 7: Cuyuni/Mazaruni 771 Regional Administration and Finance 772 Public Works 773 Education Delivery 774 Health Services 775 Agriculture 912,240 1,349,680 2,261,920 57,727 3,324 625,318 225,871 217,063 159,803 274,790 163,127 641,341 1,266,659 331,474
 557,345 - 78 Region 8: Potaro/Siparuni 781 Regional Administration and Finance 782 Public Works 783 Education Delivery 784 Health Services 785 Agriculture 384,066 940,147 1,324,213 40,027 22,171 221,511 100,357 - 86,766 118,573 557,484 160,697 16,626 126,793 140,744 778,995 261,054 16,626 79 Region 9: Upper Takatu/Upper Essequibo 791 Regional Administration and Finance 792 Agriculture 793 Public Works 794 Education Delivery 795 Health Services 80 Region 10: Upper Demerara/Upper Berbice 801 Regional Administration and Finance 802 Public Works 916,291 1,007,557 1,923,848 60,273 13,092 18,599 650,755 173,572 116,904 26,422 175,924 177,177 39,514 194,523 402,883 1,053,638 285,424 458,996 1,654,193 1,357,545 3,011,738 75,621 17,388 135,570 200,726 211,191 218,114 803 Education Delivery 1,347,965 663,435 2,011,400 804 Health Services 213,219 357,814 571,033 - - - 805 Agriculture Grand Total E X P E N D I T U R E - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 511,897 6,507,763 3,630,651 2,986,686 6,617,337 17,634 45,800 90,000 259,407 99,056 - - 170,526 283,307 333,627 1,692,053 751,334 64,057 14,703 44,407 1,282,043 322,782 129,832 226,746 169,242 558,703 474,019 193,889 241,449
 213,649 1,840,746 796,801 544,118 6,581,614 3,625,876 3,295,410 6,921,286 13,560 117,149 141,400 109,509 162,500 - 165,018 853,990 410,521 3,306,959 1,845,126 68,271 86,534 50,023 2,728,997 692,051 94,312 663,762 270,097 1,009,144 1,258,095 162,583 750,296 320,120 3,738,141 1,950,146 238,992 2,500,912 1,058,145 1,527,069 2,585,214 14,474 52,516 114,266 57,736 - - 289,264 215,642 1,380,925 615,081 - 69,598 5,877 703,302 279,368 - 242,901 178,313 730,615 375,240 - 312,499 184,190 1,433,917 654,608 - 214,248
 1,538,461 427,514 1,284,072 1,711,586 1,584 99,311 67,318 46,034 - - 128,377 240,055 846,314 307,088 16,626 37,351 22,352 262,120 105,691 - 114,962 181,710 733,158 225,407 28,835 152,313 204,062 995,278 331,098 28,835 444,549 2,368,397 1,025,249 1,216,200 2,241,449 48,012 43,039 139,437 109,436 104,625 - 225,190 82,553 333,959 1,163,074 563,621 64,197 12,442 18,517 724,218 205,875 134,162 49,576 185,530 507,182 339,750 198,359 62,018 204,047 1,231,400 545,625 397,103 3,408,841 1,853,805 1,488,193 3,341,998 67,360 99,441 153,790 76,512 - 278,551 317,555 2,165,190 647,545 - 92,593 15,310 1,494,743 251,159 - 137,029 216,607 727,322 378,243 28,992 229,622 231,917 2,222,065 629,402 28,992 MID-YEAR 2019 - T O T A L A E P X P R P E O N P D R I I T A U T E R D E 153,109
667,876
86,494 305,005 173,581 128,240 88,585 667,876 315,283 394,245 2,105,831 258,408 356,968 615,376 7,950 147,520 130,765 90,500 17,510 160,263 351,582 1,126,043 421,598 46,345 23,961 10,470 167,316 56,661 - - 66,962 72,231 316,771 234,166 5,758 113,364 78,519 1,127,022 371,148 5,758 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 188,167 3,794,834 6,958 31,147 42,060 78,401 29,601 - - - 115,027 730,403 5,496 22,777 40,035 42,547 4,172 - 61,102 75,893 456,431 132,667 4,310 150,607 1,216,747 15,970 1,750 70,728 37,809 24,350 105,686 18,796 153,621 642,772 295,871 160,661 1,856,472 15,135 58,437 29,775 37,939 19,375 128,499 136,956 1,156,797 409,087 25,134 E X P E N D I T U R E - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - - - 60,146,472 126,270,371 186,416,844 4,684,684 55,019,407 246,120,937.027 70,926,171.000 137,227,240.000 208,153,411.000 4,948,341.000 69,278,554 282,380,305.000 31,914,250.085 58,744,863.600 90,659,113.685 2,411,716.621 24,538,327 117,609,157 Figures: G$'000 Source: Ministry of Finance Page 107 of 113 Mid-Year Report 2019 Details of Expenditure: General Summary by Programme APPENDIX E9 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF REVENUE BY HEAD ITEM 2018 ACTUAL 2019 BUDGET 2018 HY 2019
 HY 2019 REVISED TOTAL REVENUE 244,076,640.6 270,040,306.7 119,477,833.5 131,234,870.3 282,349,198.7 TOTAL CURRENT RECEIPTS 217,016,363.3 238,322,676.6 109,184,851.5 115,868,781.9 238,399,527.7 CURRENT RECEIPTS TAXES CUSTOMS AND TRADE TAXES 22,191,275.9 24,889,499.0 9,836,334.0 10,570,897.0 25,465,557.6 VALUE-ADDED AND EXCISE TAXES 87,861,877.7 99,669,047.0 42,496,441.0 44,057,633.0 95,897,458.1 INTERNAL REVENUE STAMP DUTIES OTHER TAX REVENUE FEES, FINES, ETC.
88,459,256.7 99,024,354.0 48,285,508.0 54,336,233.0 102,219,884.6 424,703.0 517,468.9 175,167.9 204,560.0 504,715.0 25.0 3,305.0 4.1 8.8 14.6 I II III IV V XI FINES, FEES.

ETC.

1,404,814.8 1,513,054.6 652,062.7 798,988.0 1,521,219.4 REVENUE FROM PROPERTY AND ENTERPRISE XII INTEREST 755,150.0 1,006,152.5 2,974.8 260,865.2 1,063,807.7 XIII RENTS, ROYALTIES, ETC.
4,311,756.1 4,615,833.5 2,300,459.0 2,419,849.6 4,656,018.7 XV DIVIDENDS AND TRANSFERS 8,532,282.0 5,300,000.0 3,732,282.0 2,300,380.0 4,900,380.0 MISCELLANEOUS RECEIPTS XVI MISCELLANEOUS RECEIPTS 3,075,222.2 1,783,962.0 1,703,618.0 919,367.2 2,170,472.0 TOTAL CAPITAL RECEIPTS 27,060,277.3 31,717,630.1 10,292,982.0 15,366,088.4 43,949,671.0 CAPITAL RECEIPTS XXI MISCELLANEOUS CAPITAL REVENUE 2,230,756.6 988,316.1 1,484,675.4 484,753.5 980,265.5 XXII EXTERNAL GRANTS XXIV EXTERNAL LOANS 7,580,089.0 10,236,435.0 3,761,278.6 5,663,039.6 14,129,402.4 17,249,431.6 20,492,879.0 5,047,028.0 9,218,295.4 28,840,003.1 Figure: G$'000 Source: Ministry of Finance Page 108 of 113 Mid-Year Report 2019 Central Government Abstract of Revenue by Head APPENDIX E10 MID-YEAR CENTRAL GOVERNMENT TAX REMISSIONS BY CATEGORY ITEM 2018 HY 2019 HY TOTAL TAX REMISSIONS 29,417,505 25,984,535 I II HOSPITALS 77,504 14,571 COMPANIES/BUSINESSES 24,463,976 22,943,110 III CHURCHES/CHARITABLE ORGANISATIONS 641,053 32,474 IV V VI PUBLIC OFFICIALS/OFFICERS MINISTRIES OR GOVERNMENT DEPARTMENTS REMIGRANTS VII DIPLOMATS 674,097 826,147 1,301,017 1,078,762 391,323 272,382 442,800 481,539 VIII FOREIGN FUNDED PROJECTS 1,425,734 335,550 Figure: G$'000 Source: Ministry of Finance Page 109 of 113 Mid-Year Report 2019 Central Government Tax Remissions by Category APPENDIX E11 CENTRAL GOVERNMENT SUMMARY OF EXPENDITURES (Economic Classification) ITEM ACTUAL 2018 BUDGET 2019 HY 2018 HY 2019 REVISED 2019 1.0 TOTAL EXPENDITURE AND NET LENDING 252,017,036 288,583,830
 110,497,434 120,461,201 288,583,830 2.0 Current Expenditure 196,997,629 219,305,277 91,522,842 95,922,874 219,305,277 2.1 Goods and Services 2.1.1 Personal Emoluments 2.1.1.1 Wages and Salaries 2.1.1.2 Allowances and Contributions 2.1.2 Other Goods and Services 2.2 Interest Expenditure 2.2.1 External (Cash) 2.2.2 Internal 2.2.2.1 Treasury Bills 2.2.2.2 Debentures 2.2.2.3 Advances and Miscellaneous 2.3 Transfers 2.3.1 Pensions and Gratuities 2.3.2 Education Grants 2.3.3 Local Authorities 2.3.4 Local and International Organisations Refunds of Revenue 16,912 25,500 4,796 539 25,500 3.0 Capital Expenditure and Net Lending 55,019,407 69,278,553 18,974,592 24,538,327 69,278,553 3.1 Capital Formation
 51,843,678 64,823,384 17,950,425 21,598,277 64,823,384 3.2 Acquisition of Financial Assets 760,941 686,334 434,454 369,807 686,334 3.3 Transfers and Loans 3.3.1 Public Enterprises 3.3.2 Financial Institutions 3.3.3 Private Sector 4.0 Memorandum Items1 4.1.1 Current Transfers to GPL 4.1.2 Current Transfers to GRDB 4.1.3 Current Transfers to GUYSUCO 4.2 Principal Repayments 4.2.1 External (Cash) 4.2.2 Internal 2,414,788 2,254,788 160,000 - 3,768,835 3,600,000 218,835 - 589,713 517,213 72,500 - 2,570,243 2,352,243 218,000 - 3,768,835 3,600,000 218,835 - - - - - - - - - - - 11,836,160 11,556,215 279,944 12,135,179 11,854,972 280,207 6,131,988 5,869,955 262,033 7,984,171 6,434,999 1,549,172 12,135,179 11,854,972 280,207 1 Memorandum items serve as disclosed additional information and are not included in table summation.
Figures: G$'000 Source: Ministry of Finance Page 110 of 113 Mid-Year Report 2019 Central Government Summary of Expenditures Economic Classification APPENDIX F MID-YEAR TOTAL PUBLIC DEBT STOCK SUMMARY ITEM 2018 ACTUAL 2019 BUDGET 2018 HY 2019 HY 2019 REVISED TOTAL PUBLIC DEBT STOCK 1,708.39 1,782.83 1,634.0 1,657.8 Total Public External Debt Stock 1,322.06 1,370.07 1,251.87 1,274.04 1.0 Multilateral CDB CDF EEC IADB IDA IFAD OFID 2.0 Bilateral 2.1 Paris Club Creditors: Italy T&T USA 2.2 Non-Paris Club Creditors: Argentina Bulgaria China (Eximbank) India (Eximbank) Kuwait Libya Serbia UAE Venezuela (PDVSA) 3.0 Private Creditors 3.1 Commercial Banks Barclays Bank Lloyds Bank (O/Draft) Republic Bank Limited (T & T) 3.2 Others 1/ TOTAL DOMESTIC DEBT 4.0 Domestic Securities 4.1 Treasury Bills 91-Days 2/ 182-Days 364-Days 4.2 Debentures 3/ BOG Variable Interest Rate Debentures NIS Debenture (GOG/NIS No.
1/2016) 4/ 4.3 Bonds Defence Bonds 5.0 Domestic Loan NIS Loan (CARICOM Building Project) Notes: 1/ Includes Ruston Bucyrus Bond, Guyana Perpetual Railway Stock and External Payments Deposit Scheme (EPDS) debts.
2/ Includes K-Series 3/ Excludes Bank of Guyana Non-Interest Bearing Debentures 4/ Payment to NIS to assist in recovering from losses due to their investment in CLICO (Guyana) as per Debenture Agreement dated September 16, 2016.
Figures:US$M Source: Ministry of Finance Page 111 of 113 Mid-Year Report 2019 Total Public Debt Stock Summary APPENDIX G MID-YEAR EXPENDITURE OF KEY SECTORS SECTOR 2018 Actual 2019 Budget 2018 HY 2019 HY Education Health Agriculture Infrastructure Public Security 43,946,193,048 52,337,461,603 17,855,336,987 21,719,675,604 32,956,194,442 35,816,123,971 14,386,558,013 16,691,116,097 23,987,767,967 17,176,773,342 14,398,256,404 7,672,477,748 34,429,382,653 38,545,912,533 13,103,842,398 16,493,282,676 30,373,286,191 35,607,860,420 14,033,799,894 14,990,415,582 GRAND TOTAL 165,692,824,301 179,484,131,869 73,777,793,696 77,566,967,707 Source: Ministry of Finance Page 112 of 113 Mid-Year Report 2019 Expenditure of Key Sectors APPENDIX H CONTRACTS SIGNED BETWEEN GOVERNMENT OF THE COOPERATIVE REPUBLIC OF GUYANA AND DEVELOPMENT PARTNERS DURING THE PERIOD FROM JAN- JUN 2019 General Administration Sector US$6,000,000 1.
Project Title Executing Agency Development Partner Date of Signature Investment (US$) Type of Investment Details Establishing an Electronic Single Window for Trade Ministry of Business Inter-American Development Bank February 11, 2019 $6,000,000 Loan The objective of this project is to improve the trade facilitation performance in Guyana.

Specifically, the project will develop an electronic single window, thus reducing the time and costs of trade processes.

Energy Sector 1.
Energy Sector 1.

Project Title Executing Agency Development Partner Date of Signature Investment (US$) Type of Investment Details 2.
Project Title Executing Agency Development Partner Date of Signature Investment (US$) Type of Investment Details US$41,160,000 Energy Matrix Diversification and Institutional Strengthening of the Department of Energy Ministry of Public Infrastructure Inter-American Development Bank February 11, 2019 $21,160,000 Loan The objective of this programme is to support Guyana's evolving energy sector by (i) investing in sustainable/cleaner energy solutions to diversify the energy matrix in the hinterland while contributing to climate change mitigation; (ii) investing in the reinforcement of transmission infrastructure to improve reliability and stability of the Demerara Berbice Interconnected System (DBIS); and (iii) strengthening the Department of Energy to develop a regulatory framework, improve institutional capacity and governance of the oil and gas sector.
Guyana Petroleum Resources Governance and Management Project Ministry of the Presidency World Bank April 11, 2019 $20,000,000 Loan The objective of this project is to support the enhancement of legal and institutional frameworks and the strengthening of the capacity of key institutions to manage the oil and gas sector in Guyana.
Figures: US$ Source: Ministry of Financ e Page 113 of 113 Mid-Year Report 2019 Agreements between GCRG and Development Partners 60 57 l NORTH A TL ANTIC I OCEAN Georgctcwn am;1 regt0ns I [!

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