19 Nov 2009

Marshalls ponders spending cuts

7:51 pm on 19 November 2009

The Marshall Islands government is considering how to reduce its spending.

This comes as the Government tries to find another nine million US dollars a year to put into the national trust fund, to prevent an economic crisis when the Compact of Free Association with the US ends in 2023.

That move is based on advice from the International Monetary Fund.

Earlier this year the President commissioned a group known as the Comprehensive Adjustment Programme Advisory Committee to work out recommendations for cutting spending.

The Committee has now reported back and our correspondent Giff Johnson says there's a list of proposals.

"There are things like allowances to government leaders, housing, electrical allowances. They've got proposals to do with the government payroll which now accounts for a very large percentage of the budget."

Giff Johnson.