2017 DOMESTIC EXPENDITURE PROJECTED AT $4.3 BILLION
The total Government domestic expenditure for 2017 is projected at almost $4.3 billion.
The Minister of Finance and Treasury Hon. Snyder Rini revealed during the 2017 budget preparation launch recently.
Finance Minister Rini elaborates, of this total, $1.4 billion is allocated for development expenditure while $71 million is set aside for debt servicing.
Minister Rini adds $1.02 billion will meet the government’s payroll and $1.52 billion for other charges.
He further adds the total 2017 expenditure is higher than the revenue projection of $3.86 billion.
Minister Rini further explains, the gap will be financed by using the government’s cash reserves.
He says the projected economic growth in 2017 remains low at 3 percent with log exports projected to remain unchanged, with strong growth in fishing activities, and additional growth in excise duties while domestic revenue is projected to increase at 13 percent.
Minister Rini, however, highlighted that the challenge is that donor assistance in the form of budget support will decline by 58 percent in 2017.
He adds, major upcoming pressures which are likely to affect the Budget include the cost of preparation to host the 2023 South Pacific Games, payroll pressures, scholarships, RAMSI drawdown, and back log of court cases.