5 May 2009

Marshalls to explore cost cutting options

12:23 pm on 5 May 2009

The Marshall Islands government has named a 14-member panel to advise it on ways to cut costs and improve fiscal management.

The Comprehensive Adjustment Program Advisory Group has given it two months to complete the job.

The Cabinet's fast-tracking move follows last month's decision by President Litokwa Tomeing to stop hiring more government workers in the face of a dramatic drop in tax collections since last October.

Coupled with the decline in tax revenue is the annual reduction by 500,000 US dollars of U.S. grant funding under the Compact, now in the sixth year of the 20-year financial package.