Supplementary budget planned to restore confidence, generate investments

National

THE 2017 Supplementary Budget to be tabled in Parliament next month is part of a 100-day plan announced by Deputy Prime Minister and Treasurer Charles Abel on Friday.
The plan is to:

  • Demonstrate government proactivity in ensuring sound macroeconomic and fiscal management;
  • restore confidence;
  •  generate investment; and,
  •  Move towards greater economic self-reliance.

Abel said an economic advisory committee made up of New Ireland Governor Sir Julius Chan, Milne Bay Governor Sir John Luke Crittin, Attorney-General and Justice Minister Davis Steven and Gulf Governor Chris Haiveta would manage the implementation of the plan.
A cabinet sub-committee will maintain political stewardship of the plan.
All agencies and working groups responsible for specific outputs will report directly to it.
“We need to adjust the 2017 budget, take into account these things reported in the Mid-Year Economic and Fiscal Outlook report,” Abel said.
“We want to try our best to achieve a 2.5 per cent deficit to gross domestic product (GDP) as originally stated in the 2017 budget.
“We want to do our best to stick to the guidelines of the Fiscal Responsibility Act, which prescribes 30 per cent debt-to-GDP, and formulate our plan within its parameters.”