Govt faces budget shortfall of $300million
CENTRAL Bank of Solomon Islands (CBSI) Governor Dr. Luke Forau says this year’s budget is expected to hit a deficit of around $300million.
He told the Public Accounts Committee (PAC) during the inquiry into the 2021 Appropriation Bill 2021 yesterday.
He added that with the current revenue flow there are at least two immediate risks to the fiscal outlook.
“First is the government’s cash reserves are limited to finance the fiscal deficit.
“And secondly following from the first the financing options would be crucial for the government,” he added.
On a serious note, Dr. Forau said that on the budget his crude estimation of what he called “dead money” is around more than $300 million.
“These are monies already due to the Government but never been collected.
“These include taxes such as exercise tax, company tax, etc, and other fees,” he added.
Dr. Forau said if the government collects all these monies this year then the deficit is securely financed.
By ANDREW FANASIA