The National Government continues to cut its budgetary allocations to all sectors of the economy because of continues drop in projected revenues into its coffers.
Also the 2017 National Budget handed down by the Treasury Minister Patrick Pruaitch today was slightly lower than the figures of the 2016 national budget handed down last year.
The country’s money plan for next year stands at K12.9 billion compared to the 2016 figure of K14.2 billion.
“The 2017 Budget is set at K12, 965.4 million against a revenue envelope K11, 088.8 million. This comprise of K9, 182.2 million in tax revenue, K1, 045.3 million in grants and K1, 245.7 million from other sources of revenue,” Pruaitch said.
This is another deficit budget and the National Government will seek off-shore loan facilities to meet the budget revenue shortfalls.
The Government break up is as follows, District Service Improvement Programs and Provincial Service Improvement Programs and Government Administration sectors continued to get the biggest slice of the budget.
The provinces and districts will get K3.6 billion and K2.7 billion respectively, a combined 48.9 per cent of the budget.
Health sector maintained the third highest allocation amounting to K1.2 billion, a slight drop from K1.5 billion this year.
Education sector was allocated K1. 1 billion, a drop from K1.3 billion and law and order sector received fifth largest K1.1 billion a decline from K1.2 billion.
“This is the fifth consecutive budget by the O’Neill-led government and the last budget in this term of Parliament before the National Election, ”Pruaitch said.
“It has been no secret that we are faced with a tight budget. The weakening global situation and low commodity prices seen Government revenues decline and flatten in the past four years.
“We have been forced by circumstances to tighten our budgetary situation further through Supplementary Budgets in 2015 and 2016.”