Govt. tables $24.4million Supplementary Budget

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MINISTER OF FINANCE: Sili Epa Tuioti tabling the Supplementary Budget for 2017-2018.

MINISTER OF FINANCE: Sili Epa Tuioti tabling the Supplementary Budget for 2017-2018.

The Minister of Finance, Sili Epa Tuioti, tabled a $24.4 first Supplementary Budget for the financial year 2017/18 yesterday.

The Minister submitted the budget for Parliament’s consideration during the last sitting of Parliament for 2017, which is continuing today.

The biggest expenses include $12.4million for the Statutory Vote and $5.2million allocated for the Ministry of Prisons and Corrections. 

The money will be used to complete the new facility being built at Tanugamalala.

In addressing Parliament, Minister Sili said the budget continues the theme of Equity and Fairness. 

“It is committed to maintaining the fiscal target of a budget deficit within 3.5% of G.D.P,” he said. 

“In pursuit of that target, all additional expenditures being requested under this Supplementary Budget are fully funded from confirmed additional revenues and reallocation of savings. 

“The Supplementary Budget therefore is self-funded without the recourse to borrowing which means the fiscal deficit remains unchanged.”

Sili also highlighted that the economy continues to see positive growth “growing by 2.4% in 2016/17 in real terms. 

“The strong growth was driven largely by the Commerce sector, Agriculture, Personal and other services as well as other Manufacturing,” he said. 

“I am pleased to also report that a review of the 2016/17 Budget out turn has indicated that the 2016/17 budget deficit was 2.1% of G.D.P – well below the 3.5% fiscal target. 

“This positive result was largely driven by improved revenue collection which was 3.7% higher than 2015/16. Tax collection was up 3.3% while other revenues, fees and charges increased by 1.1%. On the other hand, government operating expenditures declined for the third consecutive year. 

“Government continues to invest in a number of essential infrastructure projects such as the rebuilding of the Faleolo terminal building and runway, new roads and bridges, the submarine cable and hydro power plants which will improve the services to the public. 

“Mr. Speaker, these achievements demonstrate good governance in the management of government resources as well as the strengthening of whole of government approaches to enhance the efficiency and effectiveness of service delivery.” 

The following is the summary of the Supplementary Budget. 

Mr. Speaker, 

I would now like to present the key parameters of the First Supplementary Estimates for the information of Members. 

The additional expenditures requested in the estimates total $24.4million. These expenditures will be funded through a combination of new and additional revenues of $23million and a reallocation of current budget resources of approximately $1.4million. 

 

Summary of Revenues:


The new and additional revenues amounting to $23million are as follows: 

• $12.75million will be sourced from our partnership with the World Bank through the Joint Policy Action Matrix. Our commitments under the JPAM have been successful in triggering the payment of this amount to support the 2017/18 budget.

• $9.6million will be sourced from excess on-lending repayments.

• $688,957 is expected from the VAGST generated as a result of the
additional expenses under the Supplementary spending.
Total funds expected as a result of the reallocation of existing budget resources
will generate $1.4million as follows:

• $481,000 from the Statutory Vote;
- These are savings accumulated to date on the foreign exchange
appropriation under the Statutory expenses;

• $100,000 from the Ministry of Agriculture;

- These are funds remaining from the implementation of the
Agriculture Show that was held in October this year.

• $696,024 from the Ministry for Commerce, Industry and Labour;

- These funds were appropriated for the Yasaki lease of the facilities at Vaitele. With Yazaki closed, these funds are now available to be reallocated; 

• $152,085 from the Ministry of the Prime Minister and Cabinet; 

- These funds relate to positions that MPMC have foregone to fund priority positions identified under the First Supplementary; 

Summary of Additional Expenditures: 

As already stated, the total additional expenditures requested under this supplementary budget amounts to $24.4million and are as follows: 

• $12.4million for the Statutory Vote; 

-  $14,400 for telephone allowances for members of the Judiciary. 

These are mandated benefits and are now included as part of the
salaries of the members of the Judiciary;

-  $65,089 additional required under the External Debt Servicing 

Interest Payment;

-  $2million additional required under the Income Tax Refunds;

-  $3million additional for Duty Rebates;

- $7.35million additional required for VAGST Refunds;

• $102,915 to the Ministry of Commerce, Industry and Labour; 

-  $20,915 additional required for the salary of the Principal Human 

Resource Officer;

-  $82,000 to finance a replacement vehicle for the Ministry as approved by Cabinet;

• $700,000 for the Ministry of Education; 

-  $500,000 additional required for the salaries of teachers;

-  $200,000 additional to top up benefits for teachers;

• $5.66million to the Ministry of Finance; 

-  $2.55million for Duty on materials required for donor funded
development projects;

-  $2.55million for VAGST on materials used for donor funded
development projects;

-  $50,000 counterpart costs for the Apia Waterfront Development;

- $20,000 counterpart costs on the project for Disaster Risk
Management;

-  $40,000 counterpart costs on the UNFPA Multi Agreement;

-  $10,000 counterpart costs required under some initiatives of the
Customary Land Advisory Commission;

-  $150,000 additional monies required under the counterpart costs
for the Enhancing Resilience of West Coast Road Project;

- $290,000 as part payment of the Hosting Fee for the 2019 Pacific Games; 

• $60,270 for the Ministry of Justice and Courts Administration;

- $60,270 for the remuneration of the Judicial Research
Analyst/Consultant;

• $5.2million to the Ministry for Prisons and Corrections; 

-  $3.7million to complete the current contract on the construction 

works for the 8 cell block building of the new prison;

 -  $1.5million initial costs for the construction of the Administration 

Block for the new prison;

• $144,539 for the Ministry of the Prime Minister and Cabinet;

- this is intended to finance the 4 priority posts requested by the
MPMC;

 • $131,000 to the Fire and Emergency Services Authority

- $131,000 to finance new personnel required for the new 911 Call 

Centre.

Conclusion

Mr. Speaker and Honourable Members,
The Supplementary Budget before the House is a product of careful consideration to ensure macroeconomic stability is maintained and at the same time will provide additional resources to deliver the services demanded by the public. Government will continue to ensure quality spending and prudent allocation of resources so we can deliver on an improved quality of life for everyone.
Mr. Speaker, Honourable Members,
On behalf of the Government, I take the opportunity to wish you and Honourable Members of Parliament as well as the people of Samoa a Joyful and Peaceful Christmas and a Prosperous 2018.
Soifua 

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