Govt K2bil short in first 6 months

FINANCE Minister Charles Abel says there is a funding gap in the budget of about K2 billion over the first six months of the year, resulting in outstanding commitments not being met.
Responding to questions by East New Britain Governor Nakikus Konga on the outstanding funds for disaster in the province that had yet to be received, Abel said, in Parliament, a K1b financing was imminent and was about to be delivered.
He said the dividend issue was where the primary shortfalls were coming from, not from taxation.
“There are significant revenues that go into Kumul structures like Kumul Petroleum in particular that have not handed over a dividend,” Abel said.
“You need the revenue coming in order to fulfil the expenditure commitments.
“That doesn’t help the Government’s position at this point in time,” he said.
Abel said he would look into the cheque that bounced to ensure that it was honoured.
“When you have appropriations in the budget against natural disasters , even if they are insufficient, we have K20 million in the current budget for national disaster and Governor Konga’s request is for K17.8m that immediately would consume that whole appropriation.
“We see the balance of the K17.8million in the context of all the other pressing issues around disasters while we look at fulfilling the budget in 2019 where the rest of the disaster money can be met and then the longer term issues about how we go forward in dealing with natural disasters.”
In response to a supplementary question by Central Governor Robert Agarobe on the outstanding K5 million, Abel said there was an appropriation of K20 million in the national budget for disasters and the relevant agency was the Department of Provincial and Local Level Government Affairs.
“We note your concerns of the outstanding funds; no doubt they are considering all these matters.
“I will do my best to look into the finance department to support him together with Governor Konga in the other outstanding disaster related requests,” Abel said.
Meanwhile, Abel, in response to questions by Northern Governor Gary Juffa about K5m disaster funds which only K2m was paid, said he would look into the outstanding monies owed to the province.
“I acknowledge that particular issue and will work with Governor Juffa to see how we can resolve it.”