Wednesday, 23 May 2007 7:22 AM

Government records SBD$ 39-million surplus last year

Deputy Governor of Central Bank Denton Rarawa released these figures yesterday when presenting a paper on the economic performance of the country.

He said this has been achieved through governments various reforms in the recent past and government's restoration of its financial management.

He said that because of various controls and efforts in collecting taxes, revenue rose by 27 percent even though expenditure had also risen by 13 percent.

Mr Rarawa said the government had reversed its practice of being a borrower, which resulted in deficits on a yearly basis, to that of saving money which had resulted in the registered surplus.

He says the government would now need to properly plan on how best to spend the money so that its citizens feel the benefits of the surpluses.

Mr Rarawa stated that there is room for further growth as "there is considerable scope especially for fish, coconut products, cocoa, palm oil and gold which will come on stream at the middle of next year" said Rarawa. The deputy Governor has however cautioned that in the forestry sector studies have indicated that resources will run out in few years.

Mr Rarawa also said the government should now start looking at other revenue sources as the main income earner of log exports will soon decline. In the past two year and into the first five months of 2007, log has been the main income earner for Solomon Islands.