After taking a number of economic steps to keep the economy afloat during this COVID- 19 situation, the National Government has come up with a Fiscal and Macroeconomic Response Plan.
Details of the plan will be presented by the Minister of Finance and Treasury, Harry Kuma, when he will introduce the 2022 Appropriation Bill 2022.
Giving a glimpse of the plan, in his speech from the throne the Governor General His Excellency Sir David Vunagi, said that the Fiscal and Macroeconomic Response Plan is derived from various reports authored by multilateral partners and state institutions.
The plan was compiled from reports coming from “Asian Development Bank funded Solomon Islands Sustainable Transport Infrastructure Improvement Program, economic and fiscal impact of the November riots and community transmission undertaken by the Central Bank of Solomon Islands and the Economic Reform Unit, Budget and Debt Management Unit of the Ministry of Finance and Treasury”.
His Excellency Sir David said 2022 fiscal and economic outlook and implications are very challenging and uncertain with expected decline in domestic revenue, especially in tax collection and excise and export duties. Expenditures is expected to rise in 2022.
Sir David said this Fiscal and Macroeconomic Response Plan is aimed at managing these challenges and ensure that we emerge stronger from these two unfortunate events- November riots and COVID- 19 community transmission.
“It will take time, and we may sacrifice some of our development aspirations, but we must be focused and strategic. We cannot spread our meagre resources too thinly,” Sir David stated.
The Governor General added that government has come up with a number of policy recommendations under the Plan, the recommendations are related to;
- operational measures,
- review of the 2022 annual borrowing limit,
- revenue measures under inland revenue division,
- revenue measures under the customs and excise division and
- measure to support an economic recovery.
A detailed information about the plan will be made public when the Minister of Finance and Treasury bring the 2022 Appropriation Bill 2022 to the floor of parliament.