Opposition Leader Jeremiah Manele has cautioned the national government to control expenditure to keep its fiscal balances close to their budget target.
He made the statement when debating on the 2015 Supplementary Appropriation Bill in Parliament, Tuesday.
“It is obvious that the fiscal position of Solomon Islands generally has deteriorated due partly to the lower global demand which led to lower than budgeted revenue collection from commodity earnings.
“The government should have applied measures to control expenditure.”
Debating on the Supplementary Bill, he told parliament the current budget outcomes and the mid-year term outlook highlight the fragility of the economy and the government’s fiscal position that calls for the government to control expenditure.
Mr Manele said the government delivered a record size budget in the history of Solomon Islands, a deficit budget which is becoming a challenge for the Government to implement.
He stressed the 2015 mid-year review found there has been significant under spending on the overall government expenditure, below the budgeted levels.
“This under spending undermines the credibility of the development budget allocations.”
The government needs to consider its ability to spend funds before committing to increase in the future if budget credibility is to be maintained.
By ELLIOT DAWEA