Parliament passes Supplementary budget

After a weeklong debate last week, Parliament has passed the $10 million Supplementary Budget for 2014/2015.

The budget was tabled by Prime Minister and the Minister of Finance, Tuilaepa Sa’ilele Malielegaoi in Parliament during last session of Parliament for 2014.

The Supplementary Budget showed a total reduction in overall expenditure of $2.63million. The budget was not altered at all.

So what was approved by Parliament?

Well, here is another look at Minister of Finance Tuilaepa’s Supplementary Budget:

Tuilaepa’s budget statement
Mr. Speaker, following Cyclone Evan that devastated the economy in December 2012, GDP has continued to show postitive signs of recovery with real GDP growing by 1.9% in the FY2013/2014. Construction and Agriculture/Fisheries sectors are the key drivers of this positive growth reflecting the impacts of the post cyclone reconstruction and rehabilitation efforts.

Real GDP is expected to grow at around 2%-3% over the next two financial years and this growth is anticipated to be driven by developments in the tourism sector, infrastructure projects such as roads, airport upgrade, parliament building and the preparations for the Commonwealth Youth Games in 2015.

The preparations of this First Supplementary budget took into account the need to maintain fiscal sustainability. In this regards, I am pleased to announce that this supplementary budget will not affect the projected level of the budget deficit I announced in the 2014/15 Main Budget Estimate and will maintained at 4.1% of GDP.

The Supplementary
Budget I would now like to provide an overview of the first Supplementary Estimates for the current fiscal year 2014/2015:

Summary of Additional Revenues
The financing of the additional government commitments will be made possible through the following sources of additional revenues amounting to $8.31million:

• Collection of outstanding Import Duty and VAGST from Government Ministries as well as miscellaneous fees for Accounting Services & Financial Reporting amounting to $3.87million;

• Central Bank Reserves of $4.15million;

• Additional Revenues collected under the Office of the Regulator of $286,000;

Furthermore the balance of $2.58million that remained following the successful UNSIDS Meeting held in September.

Summary of Additional Expenditures
The additional expenditures requested under this supplementary budget totals $10.79million (including VAGST). These priority expenditure are considered critical to ensuring the sustainable efficient delivery of services to the people of Samoa.

These priorities include:
Ministry of Finance

• $110,859 is being allocated for counterpart costs related to the Faleolo Airport Terminal Upgrade and $500,000 demolition fee to initiate works for the proposed New Parliament House;

• $476,806 is earmarked for Ministerial support for the Minister of Finance’s office and the two Associate Ministers which was omitted during in the Main Estimates;

• Readjustment charges to E.P.C for electricity at the T.A.T.T.E building of $876, 829;

provision of $1.2million towards World Bank subscriptions for additional shareholding;

• $3.4million for the payment of import duty and VAGST for the Government of Samoa as well as $100,000 under Statutory Expenditures for payment of fees and charges;

Ministry of Agriculture

• The development of the access road to the newly established Headquarters for the Livestock Division at Vaea totaling $230, 925;

Ministry of Foreign Affairs

• $500,000 towards 40 additional scholarships for undergraduate studies for Science teachers;

• $276,960 to fund the reclassification of overseas missions allowances; • An additional $54,900 is earmarked to fund the lease and operating costs for the Samoa Office in Brussels;

Ministry of Natural Resources and Environment

• Payments for contractual services for the construction of retained walls or seawalls/rockwalls to ensure Climate Resilience amounting to $871,764; and $50,000 to fund end of contract benefits for personnel;

Ministry of Prisons
• An additional $358,922 to facilitate operational expenditures for the new Ministry;

National Kidney Foundation
• Operational expenditures to support services provided by the National kidney Foundation totaling $70,000;

Ministry for Revenue
• Additional expenditures of $387,000 for the continuing institutional strengthening of the Ministry;

Samoa Bureau of Statistics
• $84,596 to support the completion of the Demographic Health Survey Ministry of Police

• Additional Operational expenditures for the newly established Dog Management Unit totaling $136,000 as well as $500,000 to pay for the lease of STEC land;

Ministry for Justice and Courts Administration
• $95,000 allocated to the Civil Trust and readjustment charges for electricity of $300,000;

Scientific Research Organisation of Samoa
• Provision of $34,000 for Annual Director’s fees.

Land Transport Authority
• Provision of a salary for the Communications-Education officer of $30,000.

Conclusion
Mr. Speaker and Honourable members, the additional expenditures considered under this first supplementary budget are priority expenditures that are critical for delivering effective government service as well as meeting government’s commitment to its development agenda.

These were closely scrutinized to ensure fiscal sustainability and macroeconomic stability are maintained. Mr. Speaker, Honourable Members, on behalf of the government, I wish you Mr. Speaker, Honourable members and every citizen of Samoa a Merry Christmas and Prosperous 2015. Soifua