Parliament rises after passing of Supplementary Budget

The final Parliament sitting for this month ended with the passing of the country’s 2016 Supplementary Budget.

This is the third Supplementary Budget passed under O’Neill- Dion Coalition Government.  

Treasury Minister Patrick Pruaitch when handing down the budget on Thursday stated that “the 2016 supplementary budget comprises adjustments that include both expenditure saving measures of K928 million and additional revenue raising measures of K958 million.”   

This will see many government projects put on hold until next year, so monies will used to fund the 2016 National Budget because of shortfall in projected revenue collection.  

Department of Works and Implementation got the largest slice of its budget, totaling K159.7 million, followed by the National Development Bank losing K49.6 million in reduction of appropriate – capital expenditure.

And Treasury and Finance were the biggest losers with close to K142 million cut to its operational spending, followed by Department of Works and Implementation with close to K49 million.

“The adjustments were implemented strategically to ensure that economic growth is maintained, the implementation of the key national infrastructure projects are maintained, jobs are protected and the delivery and quality of basic goods and services are not compromised,” Pruaitch said.

Prime Minister Peter O’Neill said the constant decline in world crude oil prices had left a $ US2 billion (K6 billion) hole in the 2016 National Budget.

He added that cuts on government expenditures will not affect its key policy areas of free education, free health care, support to churches and its partners, infrastructure development and DSIP and PSIP funding.    

Shadow Finance Minister Bire Kimisopa when debating the Budget said putting country’s revenue in the Sovereign Wealth Fund is the solution to help future governments to maintain a clean balance sheet by withstanding any internal or external factors that will have an effect on the country’s economy.

“If we have a sovereign wealth fund we will be able to mitigate all these, we will be able to support the budget, and perhaps consolidate the exchange rate and give confidence to private sector in terms of the foreign currency situation in the country to access foreign currency to pay for goods and services overseas,” Kimisopa said.

Meanwhile, Opposition Leader Don Poyle challenged the government to be more transparent in its dealing.     

He said Members of Parliament must be advised on when the budget will be tabled so MPs will have time to research and debate it on the floor.

“You have taken us by surprise it is not (on notice paper)… this is not a private business you play close to your chest.”

But Prime Minister Peter O’Neill hit back telling Parliament that budgets are important government policy papers and there is no need to consult the opposition.

 “Since 2002, I have been in Parliament I have never seen any budget process not been guided very secretly by treasury, and discussion taking place with departmental heads, and to our level at the ministers level comes at a very last minute.

“These are processes that have been going on for 40 years since Independence and they do not go and consult opposition about budgets.” 

Author: 
Charles Yapumi