25 Mar 2013

New Vanuatu govermnent eyes expenditure cuts

12:47 pm on 25 March 2013

Cutting expenditure as part of moves to improve Vanuatu's vexed financial position is a priority for the new government led by Moana Carcasses Kalosil.

The Greens' leader was elected on Saturday to replace Sato Kilman, who resigned last Thursday, shortly before the opposition was to bring a vote of no confidence in him.

However, the new-look cabinet faces an unprecedented budget deficit, something the new Lands Minister Ralph Regenvanu admits is a huge problem.

"It's going to be a huge challenge to find out where we can save or cut down on spending and that'll be the main priority actually, cutting down on unnecessary spending and trying to tighten up the way the government operates so that it uses the available money much more efficiently."

Ralph Regenvanu

The new Finance Minister WIllie Jimmy says he wants to review the recently approved national budget and tomorrow he will seek assurances from heads of all public departments that they can achieve their budget targets.