Proposed budget of $1.08 billion tala expenditure tabled in Parliament

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The government’s proposed budget for the new financial year 2023/2024 amounts to $895.5 million tala, with a forecast record of a Cash Deficit of $185.7million equivalent to a Net Lending requirement of $ 88.1 million under the GFS or 3.3% of GDP.

Minister of Finance, Mulipola Anarosa Ale-Molioo made the announcement during Parliament yesterday. 

The expenditure outlined in her budget address is $1.08 billion tala with a deficit of close to $200,000 million tala.

The Minister pointed out the 2023/2024 Main Estimates laid before Parliament is that the total Receipts for the Government are expected to increase by 12% in the new fiscal year 2023/2024 which will be driven up primarily by Ordinary Receipts, which include both taxation and Non-Tax Revenues are projected to increase by 12% overall as a result of an anticipated increase in tax collections by 13% whilst Non-Tax Revenues will decline by 1%.

The Minister emphasized that the projected increase in Taxes is attributed solely to the anticipation of increased economic activity driven by Government spending and a recovering global economy but in no way does it indicate any increased tax rates.

The aggregated total expenditures for the new fiscal year of $ 1.08 billion inclusive of development programmes sourced by our development partners, which will increase by 11% over the current year’s estimates.

The increase in expenditures for the new fiscal year is a testament to the Government’s commitment to raising its spending in order to drive recovery and restore economic growth. 

The Minister says the proposed budget will see the continued commitment of the Government to the implementation of the Pathway for the Development of Samoa through partnerships with communities and the private sector.

“It continues to emphasize the prioritization of the socio-economic welfare of the nation, particularly following three years of uncertainty under the threat of the COVID-19 pandemic.

“The current fiscal year includes policies that were bold in the face of global economic turmoil but as we have seen, it has paid off with higher than anticipated growth for the current and the new financial year.” 

We will break down the proposed budget and report on it in later bulletins.  Parliament will reconvene on 13 June 2023.