7 Nov 2002

More concerns about Cook Islands' economy

11:24 am on 7 November 2002

The Cook Islands financial secretary Kevin Carr is concerned that the economy may be headed for trouble because of overspending by Government ministries.

Mr Carr says the economy is in danger of overheating because government is spending too much on ministries and the public service is again being inflated.

He says there is a risk thaat the public service could get too big again.

Mr Carr says this is particularly obvious in the current Budget with the Environment Ministry employing more people in the outer islands.

Earlier this year the Chamber of Commerce voiced the same concerns saying the government was on course to rapidly expand public expenditure.

It said that expenditure had increased by 20 percent in the past two years and was projected to grow by even more in the next two.