GOVT. ESTIMATES $116.2 DEFICIT IN 2020-2021 BUDGET
By Nanai Taofiga Laveitiga Tuiletufuga
“The 2020/2021 financial year Main Estimates is expected to record an overall fiscal deficit of approximately $116.2million tala,” Minister Finance Sili Epa Tuioti reassured Parliament and the country in tabling the new fiscal year Budget Estimates yesterday morning.
“When reclassified under the Government Fina20nce Statistics format (GFS) this is reduced to $82.4million tala or 2.3% of GDP,” added.
Also in his budget address, Sili countered claims that “Government is bankrupt and no longer able to pay its debts.”
Elaborated the Finance Minister in his prepared Budget Address remarks;
“Mr. Speaker, at current the Government’s financial position remains sound and the appropriation of its revenues remain sufficient to sustain its operations.
“A total of $89million is included under the total Statutory Payments of $137million allocated specifically for the Government’s debt servicing taken from total Government Revenues of $838.2million.
“This means that after paying our debt servicing, a total of $749.2million is left to be appropriated towards remunerations for public servants, payment of operations as well as other development programmes of the Government.”
“In terms of percentage, only 11% of Government revenues go towards our debt servicing while 89% remains for other operations of Government and its key developments,” continued Sili. “Despite current circumstances the Government remains confident that we can work together to ensure strong economic growth for a better future for all.”
After parliament and in an exclusive interview with Savali News and Radio 2AP and accompanied by Chief Executive Officer of the Ministry Finance Leasiosio Oscar Malielegaoi, Sili reiterated that with the current numbers, Government is “spending only $12 sene from revenues collected for its Debt Services obligations.”
Added the Finance Minister;
“There are also wild claims by some false prophets that if they come into office, they will do away with any future loans or borrowing money to meet Government’s obligations.
“I find those claims horrendous and have are total untrue.
“The sound planning reflected in our Budget Estimates reaffirm the wisdom of a responsible government which is fully aware of its obligations to the people and in control of its financial fate.
“Furthermore, the governments audited revenue and expenditures report are public records and that should be more than enough evidence to vindicate government from the ridiculous sinister or conspiracy rhetoric.”
(EDITOR’S NOTE; The full Budget Address by the Finance Minister is available on the Government of Samoa’s Website, (www.samoagovt.ws) and the Ministry of Finance website, (www.mof.gov.ws).
It is also posted verbatim on the Government of Samoa’s Facebook Page (@samoagovt) and the Savali News Facebook page (@savalinews).
