P.M. outlines proposed financial reforms
This week the buzz word in Belize is definitely “budget” and with tax increases and spending cuts expected to be announced in Friday’s presentation to the House of Representatives, tensions are high at any official event. Such was the case this morning at the Finance Reform Forum hosted by Prime Minister Said Musa. While the budget was not on today’s agenda, in his address to the gathering the Prime Minister listed several specific amendments to the Finance Act which he believes will set the nation on a sounder economic course.
Prime Minister Said Musa
?Any loans or borrowings by Government of or above ten million dollars shall only be validly entered into pursuant to a resolution of the House of Representatives and the Senate, authorising the Government to do so. The total amount of money, which may be borrowed at any one time, shall not exceed ten percent of the gross domestic product or ten percent of the Government debt which ever is the greater. The total aggregate amount raised or borrowed in any one fiscal year without the approval of the National Assembly, shall not exceed ten million dollars.?
?The provision in the existing act that authorises the Minister of Finance to invest monies standing to the credit of the consolidated revenue fund is amended so that no such investment can be made without the authority of the Cabinet. The bill also now declares, thereby removing all doubt that principal and debt of all loans shall constitute a charge on the consolidated revenue fund.?
?The existing act contains adequate provisions to ensure that public monies are properly accounted for and audited. The powers of the auditor general are comprehensive. Nevertheless, the amendment bill seeks to introduce tighter controls. For example, the provision empowering the Minister of Finance to extend the period within which the auditor general must submit his accounting of public monies to the auditor general has been removed. Any such extension must now be granted by the National Assembly and only for good and sufficient reason and only for limited period of time. Similarly, any extension of time for the auditor general to submit his certificate of audit to the National Assembly through the minister must be obtained directly from the National Assembly and only for good and sufficient reason.?
?The proposals set out on this paper are substantial and require a cultural shift in the way we do things. They represent a blue print for the process of reforming the way we administer public finances. We have a challenge ahead of us and are under no illusion about that. But the case for reform is compelling and we are determined to make it happen. As this paper makes clear, some reforms are already under way. In terms of political reform, the good governance commission will be continuing Government?s programme of political reform and will be looking at strengthening the freedom of information act and assessing effectiveness of penalties for abuse of constitutional rights. The commission will also be looking at other governance issues such as vehicle policy, use of telephones, contract officers and general waste in Government. We believe this is a good start. To make them all a reality will require hard work and corporation from all the social partners and all Belizeans. But most importantly, it will require the participation of the people and communities to whom the public finances belong.?
