The Ministry of Finance has responded to allegations by the opposition that the government's cash flow is "critically low", with the Ministry stressing that the daily and monthly cash revisions are "reassuringly upheld".

Late last month, the leader of the Human Rights Protection Party (H.R.P.P.), Tuilaepa Sailele Malielegaoi highlighted that the current parliamentary term will end next year where a total amount of $WST4 million per constituency is due to be paid to all the districts which he questioned how the government is going to get the money to do so.

The Ministry responded that this is not the case and added that the GDP since borders re-opened two years ago is surging and reassuring.

"It is imperative to highlight that the Government's cash position remains far from any critical low level, reassuringly upheld by the Ministry of Finance's meticulous oversight under the leadership of the Minister of Finance, through daily cash position updates, monthly cash management meetings, and quarterly updates of the economy," M.O.F stated.

"The Government's cash position at the end of the financial year is audited as part of its Public Account presented to Parliament. The stability of its financial position owes much to the robust economic growth Samoa has experienced since borders re-opened in August 2022, with GDP soaring by 8.0% in 2023 compared to the previous year.

"Notably, this surge in economic activity has bolstered revenue collections without any need for rate adjustments, underscoring the government's prudent fiscal management."

Signed by the Chief Executive Officer, Saoleititi Maeva Betham Vaai, the Ministry's response also added that in April 2024, the Government of Australia committed AUD$20 million (equivalent to SAT$36.7 million) to bolster the forthcoming CHOGM summit and address key national budget priorities outlined in the FY24/25 Main Estimates. 

These funds are designated for distribution through the Joint Policy Action Matrix, a collaborative framework involving Australia, New Zealand, the World Bank, the Asian Development Bank, and the European Union. 

Building on previous support, Australia also extended aid to Samoa in 2022, allocating AUD$20 million through the FY 22/23 First Supplementary to aid the country's economic recovery efforts. 

Management of cash grants from both bilateral and multilateral agreements falls under the purview of Samoa's Ministry of Finance, while in-kind assistance is directly administered by partnering development entities. 

Amid Samoa's gradual economic recuperation from the adverse effects of the Covid-19 pandemic, priorities include curbing inflation, primarily stemming from imported sources, strengthening fiscal reserves through enhanced revenue collection compliance, and upholding the 'no borrowing' strategy outlined in the medium-term debt plan spanning 2021/22-2025/26.

"The Government's national priorities for Samoa stated in the "Pathway for the Development of Samoa 2022-2026" with a vision of "Fostering social harmony, safety, and freedom for all", are implemented under the guidance of the theme "Empowering communities, building resilience, and inspiring growth," M.O.F stated.

"These 'people-centered' priorities are delivered through targeted community support addressing the challenges and needs of all 51 districts including the most vulnerable population, through the $51m District Development Program (DDP)."