THE Guadalcanal Provincial Assembly has passed a SBD$32,608,910 budget for its 1st quarter of 2022/2023 financial year, Friday last week.
Provincial Minister for Finance and Treasury, Andrew Tahisihaka stated that this year’s budget is prepared against the backdrop of difficult economic situation currently facing the country.
“The current state of the local economy is very complex coupled with increasing uncertainty in many fronts.
“Tough considerations and strong decisions had to be made by this government in finalizing this budget to best reflect its policy priorities and the strategies for the new financial year 2022-2023” Minister Tahisihaka stated.
He was referring to the CBSI’s national economy contraction of negative 0.6% in 2021, the positive 0.4% reversal, in September 2021, and again the further decline of negative 7.3% on growth for 2022 due to the Covid-19 and the November Riot which also affected Guadalcanal Province’s local revenues.
He furthered “An overview of the budget the over figures are highlighted as follows; the total recurrent revenue and capital revenue budget estimate for 2022/2023 financial year is equivalent to SBD$32,666,077. As such, the total recurrent revenue is estimated at $23,679,105 whilst the total capital revenue is estimated at $8,987,005.”
In terms of the expenditure, he stated “the total estimated recurrent expenditure and capital expenditure for 2022/2023 is equivalent to $32,608,910. Thus, the total recurrent expenditure estimated for 2022/2023 financial year is $20,073,033 whilst the total capital expenditure budget estimated for the new financial year is SBD$12,593,077.”
“Of this total figure, the total recurrent expenditure estimated is SBD$20,015,833 dollars. This represents 61% of the total recurrent & capital expenditure budget for 2022/2023 financial year” Minister Tahisihaka further explained.
A more detailed summary of the of 2022/2023 financial year budget is as follows:
In terms of the Revenue: The 2022/2023 Budget will be funded from the Fixed Service Grant, Local revenue and the Provincial Capacity Development Fund (PCDF).
The total recurrent & capital revenue estimated for appropriation is SBD$32,666,110, the total recurrent revenue estimated is equivalent to $23,679,105, and the total capital revenue budget estimated is equivalent to $8,987,005.
The estimated total revenues for the following divisions are; Finance Division $11,577,032, Lands Division $6,770,718, Commerce Division $1,966,827, Forestry Division $1,623,030.
In terms of the Expenditures: the total recurrent and capital expenditures to be appropriated for the financial year 2022/2023 is estimated at SBD$32,608,910, and the total capital expenditure budget is estimated at $12,593,076.
The estimated total recurrent and capital expenditures for each sector are;
Works, Transport & Communication (WTC) $2,828,017, Administration $1,413,832, Education $1,505,459, Health $1,692,364, Women Development $417,618, Commerce & Investment $260,979, Tourism & Culture $1,570,013, Agriculture $1,500,000, General Investment $480,805, Government for Resilient – Climate Change $2,976,98, Civic Affairs $600,000.
Furthermore, a total of SBD$ 6,765,026 dollars is allocated under other operational cost to fund utility costs and the deliberations to implement the above reforms under the government policy platform.
The Nine (9) Key Reform Agendas for 2022/2023 Budget are;
1) The Executive continue to support and invest in strengthening the capacity of the Policy Monitoring & Evaluation Unit within the Premier’s Office.
2) The Executive is continuing to push for implementation of the OAG audit recommendations to ensure the improvement of financial management within Guadalcanal Province.
3) The Executive continues to implement financial management measures to stabilise and improve the financial position of Guadalcanal Province.
4) The compliance and governance system within Guadalcanal Province remains an on-going challenge that must continue to be addressed in this financial year and beyond through appropriate actions.
5) On-going improvement of the PCDF assessment for Guadalcanal Province, the Executive through the Finance and Planning divisions is able to consistently improve the PCDF assessment over the last two years.
6) On-going development in the relationship with all Guadalcanal business partners, review of Business Ordinances, and the development of the investment ordinance for Guadalcanal Province.
7) Review of the Staff Instruction for Guadalcanal Province to effectively regulate the operation of Guadalcanal Province and human resource management.
Investment in strengthening the monitoring mechanism and compliance of all logging licenses operating around Guadalcanal Province.
9) Implementation the GP Headquarter & Township projects to achieve equal access to services particularly for people of Weather Coast and Interior communities of Guadalcanal Province.
Accordingly, Minister Tahisihaka stated that despite the economic challenges, Guadalcanal Province’s 2022/2023 Budget is more comprehensive than the previous budgets due to the realistic approach the Sade Government for Inclusive Change and Sustainable Developments (GICSD) aims to implement before its term lapses.
In his concluding remarks of the 2022/2023 Financial Budget today during the Sine Die Motion, Premier Sade said that GICSD is adamant to strategically utilize it for its intended purposes to benefit the Guadalcanal people. He also stated that GICSD aims to finish the 2022/2023 Financial Year strong.