Low revenue collection for 2016

-
The Public Accounts committee has began its hearing into the proposed draft 2017 budget.  

Appearing before the PAC, the Finance Ministry revealed revenue collection for this year has not been as expected.  

Chairman of PAC, Rick Hou said as opposed to revenue collection, more has been spent on expenditure and asked whether government is spending more than what it is currently receiving.  Also on that note, Member of Parliament for Aoke/Langalanga, Matthew Wale is skeptical about the proposed 2017 budget and questioned the credibility of that budget.  Mr. Wale highlighted how the projection for 2017 will be 19% higher than the 2016 budget, when there is a deficit in this year’s midterm review of the 2016 budget.  It had been reported that there was a deficit of about $200 million in the midterm review.

Responding to the PAC’s query, Permanent Secretary Harry Kuma says, collection from the IRD has been slow.  However Mr. Kuma says, IRD itself has its own seasonal performance of revenue, especially during times when taxes are due.  Mr. Kuma says revenue performance within the IRD is still uncertain at this stage.  However he says Customs division has done well in its collection, attributing this to the volume of log exports despite its low price. 

Permanent Secretary Kuma says on pro rata basis, other charges and payroll expenses had almost reached its ceiling.  Mr. Kuma says they are working hard on curbing other charges with regards to expenditure for the rest of this year.  He says on the development budget, the country has underspent in that area and it is estimated that 70% to 80% of that budget will be used.  Also Mr. Kuma says, at this stage, the Ministry wouldn’t be able to confirm its revenue collection as yet.  He says as has been in the past, usually collection would be on the rise once the year draws to a close.  He says as has always been with Finance, raising projection of a budget is a norm.  However he says this is a challenge which they will continue to work hard at.

All line Ministries are expected to appear before the PAC before parliament resumes sitting on the 5th of December 2016.

ENDS///  

Audio - PS response to Wale's question. mp3

Audio - PS on low revenue collection. mp3


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