By: Nanai Taofiga Laveitiga Tuiletufuga
Inflationary pressures are anticipated in the POST COVID19recovery period, Finance Minister Mulipola Anarosa Ale Molio’o has indicated in her Supplementary Budget statement presently under Parliament’s microscope.
And included in the First Supplementary 2022/2023 of $13.9 million tala are key policy items aimed at assisting citizens especially the vulnerable groups in dealing with current and anticipated inflationary pressures.
To that effect, the vulnerable groups which are in line to receive financial relief are as follows:
ADDITIONAL $150 TOP UP TO THE PENSION BENEFIT
It is intended that this top-up will be disbursed in the last quarter($50 per month) of the financial year for the 11,320 recipients of the Government of Samoa’s Senior Citizens’ Benefit Scheme;
ADDITIONAL $100 TOP UP TO THE DISABILITY BENEFIT
There will also be a $50 top up for the months of April and May in the last quarter of the financial year for the 2,017 recipients of the Government of Samoa’s Disability Benefit Scheme. SNPF 2% SPECIAL INTERIM DIVIDEND
In addition, the Samoa National Provident Fund will also implement a 2% special interim dividend, for payout on the 23rd of January 2023.Valued at approximately 19 million tala, this payout will be made available 100% in-cash for all members. This is in addition to the payouts already done in early July and December 2022, within this Financial Year.
Remittances for the first three months of the current fiscal year (July-September 2022) came close to the $300 million tala neighborhood, according to the Remittances Report furnished by the Central Bank of Samoa.
The surge of funds send by overseas relatives and families is a welcoming relief for local residents cope with the Post COVID 19 recession beginning to surface evidenced by the increase prices for imported food items and other commodities.
For the period under the 23% increase compared to the same period last year may also be associated to the opening of Samoa’s Borders for international travel in August 2022.According to the Central Bank analysis a $53.8 million tala increase in funds remitted was recorded during the quarter to end the 3 months with a breathtaking $287.2 million tala in cash deposited directly into the hands of family members.
Underpinning this expansion were higher transfers from New Zealand, Australia, United States, American Samoa and others.
During the 3 months funds send from New Zealand totaled $22.4million trailed by $18.4 million from Australia while the United States and American Samoa accounted for $2.9 million and $2.4million tala respectively.
The Central Bank also attributed the increase partially due to the “depreciation of the Samoan tala against the U.S. dollar by 6.6%.Also on the march upwards during the same period in terms of recipients which included;· Family and Households $40.5 million tala· Hand-carried Cash $15.7 million tala· Others $0.7 million tala.
In related developments, the Central Bank also reported that the average monthly cost of sending NZD$200 to Samoa fell to 7.46%of total funds from 7.8% in October 2021.Meanwhile the average cost of sending AUD$200 to Samoa also contracted to 6.74% from 6.82% over the year.
NEW BUDGET SUPPORT TO COUNTER IMPORTED INFLATION
Government, according to Finance Minister Mulipola has also secured new budget support of over $44 million tala to counter the “shock of increasing imported inflation and to help reduce the overall budget deficit.”
Included also in this First Supplementary Budget 2022/2023 are additional Budget Supports from the Government of Australia and the Asian Development Bank. In addition these resources is a result of Public Finance Management Reforms being implemented by the Government of Samoa and agreed with its development partners.
These additional resources have been provided to support targeted measures to counter the shock of increasing imported inflation and to help reduce the overall budget deficit.
PHOTO: Parliament of Samoa
