By Staff Writer
Government has set aside $966m tala to cover the costs of running Samoa over the next 12 months starting July 2020 to June 2021.
The new financial year will also cover the period of the new general elections set for April 2020 and the ongoing coronavirus pandemic and its global health and economic setbacks.
Samoa so far is free of the pandemic virus but not the economic costs that Government has already responded to with a Stimulus Package to ease the financial burden in the country.
More financial support is being added with a second Stimulus Package to help key sectors in the business and the wider social community under the new fiscal estimates.
An extended report on the added stimulus will include pensioners getting a few extra tala in the pocket to kick off with a ‘on –off’ $100 top up at the start of the fiscal year next July 2020 and more.
No cost estimates, however, are revealed in the overall funding of the Stimulus Package.
All expenses for the 2020-2021 financial period will be paid for under national revenues and grants of up to about $838m tala.
The funds will be collected from revenues close to $589 pumped up by total grants of about $250m tala.
The total estimates of revenues compared to expenditures works down to an overall budget deficit of about $128m with about $11m tala from soft terms loans to try and cover part of it.
All added Samoa will owe $116.2 m tala the Minister of Finance Sili Epa hastened to assure in his budget address in Parliament on Tuesday ‘should not be cause for concern.’
“There have been concerns circulating within the country around the possibility that the Government is bankrupt and no longer able to pay its debts,” the Finance Minister defended.
He said that “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.”
The Minister noted that .. “11% of Government revenues go towards our debt servicing while 89% remains for other operations of Government and its key developments.”
“Despite current circumstances the Government remains confident that we can work together to ensure strong economic growth for a better future for all.”
Still the .. “ overall total revenues of Government is expected to drop 5% ….attributed mainly to the expectation for a decline in taxation ‘ blamed on ‘trade interruptions due to the COVID 19.”
The Minister tried to echo the confidence in Government that… “Samoa’s economy can quickly recover from the effects of this pandemic if we work together to action the priorities and policies laid out for the future development of our nation. “
He tried to reflect the beliefs in Government by highlighting the theme for the new budget of “Weaving a Prosperous and Secure future for Samoa together”.
An admission, however, remains with the Minister that the path ahead is not going to be an easy one.
“I have consistently reiterated the detrimental effects of the COVID19 on the economy of Samoa which is the same across other nations of the world at current.
“Tourism development itself, one of the biggest contributor’s to the country’s economy has been affected the most and despite aspirations to try and respond to the cry from the industry for large compensations, the Government’s response is limited to its available resources.”
Parliament is stands adjourn until the 16 of June to debate the final passage of the main national estimates for the new fiscal year 2020-2021.