K151m deficit in budget

 By JEFFREY ELAPA

THE country has experienced an additional budget deficit of K151 million from the projected K2.5 billion in this year’s budget, Treasurer Don Polye told Parliament.

Polye said the projected fiscal deficit for the year was 7.2 percent, about K2.5 billion which was within the fiscal regime or overall GDP of 32 percent, and that was managed.

However, he said from 7.2 percent to 7.7 percent, an extra K151 million on top of the actual projected fiscal deficit was experienced this year as a result of personnel emolument by the provinces.

He said personnel emolument from the provinces has increased from K78 million in deficits, probably as a result of ghost names, double names on the payroll system and other factors.

“This deficit is less than last year’s deficit of K295 million. This is not because of government over-expenditure or any other appropriation but it’s because of personnel emolument overrun that has increased the budget allocation of the provinces,” he said.

The treasurer said by next year they could manage it as provincial governors and the provincial administration would help when ghost names and double names were removed from payroll.

He added that the deficit was also contributed by the drop in the commodity prices that have affected the export earnings by K72.8 million.

However, he said a K100 million dividend was paid to the state by Forestry, Fisheries and Motor Vehicle Insurance Ltd which offset the deficit and reduced it to K50 million.

He was responding to questions without notice from the Deputy Opposition leader and member for Bulolo Sam Basil who asked if the treasurer could clarify the status of this year’s projected budget deficit of K2.5 million.

In a supplementary question, Western Highlands Governor Paias Wingti said the provincial governors should help control the budget deficit by removing those ghost public servants and those incompetent and nonperforming officers as they were liabilities to the state.

“The public servants who are not doing anything are getting paid. We will provide the names and get them out on the payroll as we need to cut the expenditure,” he said.

Public Service Minister Sir Puka Temu said the department had already started cleansing the payroll.

He said a committee had been established and would be addressing the issue of ghost names, double names and entries on the same position and those that were not performing.

“We have a strategy called ‘one person, one pay’ and so far 52 organisations are going through the process  and by next year, we’ll cleanse the system so the expenditure is controlled.”