The Government’s proposed stimulus package to cushion any negative impacts on the national economy are expected to be presented to Cabinet next week.
Prime Minister Manasseh Sogavare announced this measure in his national address on COVID-19 on Friday.
While the Government is in the process of preparing and responding to the emergency phase of this pandemic, work has also been carried out with Financial Institutions, State Owned Enterprises and private sector enterprises to cushion any negative impact that the current measures and restrictions will have on the economy and public livelihood.
Incentives to minimize costs for essential services and to provide financial stimulus are progressively being implemented and the government will continue to keep the public informed on the roll out of these measures.
Officials in the Ministry of Finance and Treasury and the Office of the Prime Minister are now consolidating information after wide range of consultation with stakeholders including Development Partners, to develop a comprehensive COVID-19 Economic Stimulus Package.
A stimulus package is often seen as an economic measure put together by a government to stimulate a floundering economy. The key goal of any stimulus package is to keep the economy going, and in so doing prevent or reverse a recession.
The effects of the COVID-19 will be felt in the third and fourth quarter of 2020. It is anticipated that there will be a drastic decline in export, particularly in the agriculture and forestry sector.
Source: With SIG News Service