In a statement this week, Treasurer Patrick Pruaitch he has already alerted the Prime Minister for an urgent supplementary budget and will now bring to Prime Minister Peter O’Neill’s attention the concerns raised in the 2016 Mid-Year Economic and Fiscal Outlook.
He added that an urgent early supplementary budget will demonstrate the Government’s commitment to prudent and disciplined fiscal policy, and maintenance of macro-economic stability.
Treasury Secretary Dairi Vele has recommended that the 2016 Budget spending be reduced by K1.9 billion to bring it in line with revenue shortfalls.
Meanwhile, Opposition Leader Don Poyle said the alternative government supports the idea of introducing a supplementary budget for this year.
“However, the budget has lost its utility, given that the prime time for project implementation is about to lapse and the preparation for the next budget is only months away. It should have been introduced earlier,” Polye said.
The Supplementary Budget will help the Government to readjust its expenditures to meet the drop in revenue to support the country’s 2016 Budget.