K3.5bil deficit: Lelang

THE 2019 Supplementary Budget has a deficit of K3.5 billion, says Opposition shadow Finance Minister and Treasurer Joseph Lelang.
Lelang told The National that the deficit was caused by a downward revision of revenue figures by K1.245 billion to K13.022 billion from a revenue figure of K14.267 billion; and, an increase in expenditure of K393 million compared to the 2019 Budget.
“As we have seen in recent media releases, the Treasurer had been informing the public of cuts he made to bring back the 2019 Budget back on track,” he said.
“But again, we find he has again been misleading the nation.
“The Treasurer has, instead, increased the 2019 Budget of K16.1 billion to K16.5 billion, a net increase of K393 million.
“So in reality, there is no cut.
“Only a re-appropriation of existing expenditure of K1.1 billion and an additional increase in expenditure of K393 million.”
Lelang questioned where the cuts were made and said that the Treasurer increased expenditures in the 2019 Supplementary Budget.
“On the one hand, the Treasurer cuts capital expenditure totaling K1,082 million ,including DSIP and PSIP of K286 million, and re-appropriates them to the budget blow-outs on the recurrent side of the budget particularly in wages (K856.5 million) and interest payments (K122.4 million), arrears (K821 million) and in good and services (K74.8 million),” he said.
“It is shameful, that we cut vital services to our people including DSIP and PSIP and used those funds to fund blow-outs in the recurrent budget.
“With due respect to Prime Minister James Marape, the cutting of DSIP and PSIP is political suicide.
“What could be more important that we have to cut funding that are earmarked for rural development where majority of our population live?”
Lelang said these and funding for vital services needed to be protected.
“These expenditure blow-outs have been increasing for a long time and yet Ministers responsible and their departments have failed to address them.”