Solomon Islands Government to borrow for growth projects while restraining payroll hike

-
The Government will seek concessional debt financing to implement the Tina Hydro and the Under Sea Internet cable projects in 2017, while, at the same time restrain the increase in payroll cost for public servants.

These are elements of a series of measures outlined by the Minister of Finance and Treasury Hon. Snyder Rini when launching the 2017 budget preparation process in Honiara on Monday.

The Tina River Hydro Project and the Under Sea Internet Cable are expected to boost the local economy immediately and in the medium to long term. Investing in the Tina River Hydro Electric program would deliver cheaper and more sustainable electricity to Honiara to stimulate economic activities. 

The Under Sea Internet Cable would have less immediate impact during construction, but the World Bank estimates that in the first 5 years of operation it will boost economic growth by 1 per cent in each year when in becomes operational by the end of 2017.

“For such large investment projects that stimulates businesses and bring sustained economic growth opportunities into the future, the Government will seek concessional debt financing to implement them,” Mr Rini said.

Meanwhile, as part of its cost saving measures, the Ministry of Finance will work closely with the Ministry of Public Service to control the increasing payroll cost for public servants in 2017.

The payroll has been growing at more than 10 per cent for the past six years and the Minister has highlighted that the payroll budget including COLA will be capped at $1.0285 billion in 2017.

Under this measure, more efforts will be instituted in remuneration and payroll reforms, and there will be a general freeze on recruitment until the reforms are implemented.

To achieve this, there are a number of measures that Government will take including a general freeze on recruitment in 2017, except for essential services and for positions that are important to deliver on the priority policies of the DCCG.

These special cases of recruitment must be approved by Cabinet before the recipient ministry commences the recruitment process and at the same time there will be stringent measures for overtime costs.

These measures are expected to make significant savings by reducing the payroll below $1 billion in 2017, and will create a permanent and lasting structural adjustment to budget settings.


ENDS///

Comments

Post a Comment

Popular posts from this blog

VANUATU BIGGEST IMPORTER OF CANNED TUNA FROM SOLOMON ISLANDS

-
Image
BY GEORGINA KEKEA VANUATU is the biggest importer of canned tuna from Solomon Islands. National Fisheries Development (NFD) Limited Managing Director, Frank Wickham shared this information in a recent radio talkback show to mark World Tuna Day. Wickham says the biggest export destination for SolTuna’s canned tuna is Vanuatu. “Followed by Papua New Guinea, Fiji and the market is now open in New Zealand. There is a big move now to promote and market in New Zealand and Australia. We have containers going to Kiribati, Tuvalu with a few to Tonga and Marshall Islands. The biggest of them all is Vanuatu”, Wickham said. He says domestically the consumption of tuna is growing annually making Solomon  Islands one of the biggest canned tuna consumption per capita in the world. “Two years ago it was like more than 800,000 cartons a year. which means for every woman, man and child in the country, they consume one carton a year. So if you look at 48 tin cans in one carton, it is almost one can a wee
Read more

SMALL FISH IN BIG POND LAUNCHES WEBSITE

-
Image
By EDDIE OSIFELO NEW and upcoming accommodation establishment DD Holiday Inn at Mbumburu, West Honiara, launched its website yesterday as part of its marketing drive to get itself out to a wider audience. People can access the website on:   https://www.ddholidayinn.sb Owners of the Inn, John and Nester Deve, Strongim Bisnis Senior Advisor, James Mcgoon and journalists attending a one-week Economics of Tourism workshop witnessed the event.  John Deve and wife, Nester Deve T he Economics of Tourism workshop, which was jointly funded by PACMAS and Strongem Bisnis, was conducted at DD Holiday Inn’s magnificent, opened-side thatched conference room.   A private Information Technology (IT) company, Arietech, designed the website.   Deve, a former Police officer, told the small gathering the website was the culmination of many years of struggle as a indigenous businessman.    He said it was a long journey in life, which he sees as blessing. “I have been in few businesses,
Read more

HOW A TINY PROVINCE IN SOLOMON ISLANDS REACHES OUT TO AUSTRALIA

-
Image
THE small island province of Temotu in the far eastern part of Solomon Islands is one of the nation’s most prone natural hazard areas. The tsunami in 2013 swamped through 20 villages With an estimated population of less than 25,000, Temotu often has its bouts of natural disasters. In 2015, tropical cyclone Pam left devastating effects on the tiny province where people were affected from damages to their fruit trees, food gardens and agricultural crops. People near the coast were evacuated. Then again in 2017, TC Donna in its wake and formation also impacted badly on the people of Temotu. Not to mention it was only seven years ago a tsunami claimed lives of more than 10 people, swamped more than 20 villages forcing the government to declare a state of emergency over the Santa Cruz Islands. Remains of household in Venga village after 2013 tsunami (Photo supplied) Their most recent bout of disaster was in January 2019 where bad weather caused people to face food shortag
Read more