By Staff Writer
Revenue loss of more than a $100 million tala in the next 12 months of the new financial year is the biggest worry at the Government budget tabled in Parliament last Tuesday 31 May 2022.
The loss of earnings are based on the $895m tala estimates in the 2021-2022 budget that ends this month and the $789m tala anticipated for the new financial year 2022-2023.
The July 2022 –June 2023 estimates show total revenue of about $790m tala compared to expenses of about $965m.
The close to $175m tala budget deficit are expected to be covered by soft term loans and other general budget support financing along with other planned financial measures.
Suspended opposition leader and former Prime Minister Tuilaepa Sailele Malielegaoi, is worried at the drop in revenue, after a quick analysis of the new budget.
“Our revenue earnings have dropped markedly in this second Government budget compared to their first one of 14 September 2021, so they’ll have to be careful with their spending,” Tuilaepa analysed.
The opposition leader and also party secretary Lealailepule Rimoni Aiafi, are supposed to sit in the Finance Committee review of the new budget but are prevented from doing so by their ‘indefinite suspension.’
‘Maybe this is why they suspended us,” Tuilaepa quipped.
He reflected as well on when Government rushed the passage of their first budget without review by the House Finance Committee, which he described as abuse of Standing Orders.
The apparent haste caught out the Minister of Finance, a newcomer into politics, who struggled under long periods of silence to the relentless opposition members budget inquiries.
The Tuilaepa budget analysis is sceptical of the estimated revenue over the next 12 months.
“The revenues are being set too high it’ll be a struggle to meet, what they’re doing is to be the numbers look pretty in the budget and the developments are unlikely to be met.”
The opposition leader promised a more detailed analysis of the budget next week after they have had time for closer studies but is certain it will not be easy to balance the estimates.
A key area that he wants to look into further is the noticeable drop in donor partners assistance that Samoa’s development depends upon heavily.
Part of the reason is the economic impacts of the COVID 19 pandemic, climate change commitments and the Ukraine war on the world and major donor partners for Samoa.
“Our revenue earnings from donor assistance are being overestimate yet many have been cut off and no longer continues.
“Our budget expectations are too optimistic, the economies of our major donors Australia and New Zealand are affected.
“New Zealand budget posted a huge deficit and the Government has come under a lot of public criticisms.”
Tuilaepa is critical of the Government dragging their feet of several key infrastructure projects funded under donor assistance like the west coast road to Faleolo International Airport.
He was saddened by the thought that the projects delay are felt to be from Government not wanting to be seen continuing development projects started by the HRPP.
Other added worries for the former PM are budget allocations for social commitments to funds like the pension for senior citizens.
His quick skim of the budget shows no additional funding to meet the demands of new pensioners eligible at 65 years old.
The new budget is expected to be debated once the House Finance Committee review is completed and tabled in Parliament.