30 May 2018

Lack of revenue leads to Samoa govt spending cut

5:31 pm on 30 May 2018

Revenue collection by the Samoan government in the 2017/18 financial year has been so disappointing, it is being forced to curb spending for the next fiscal year.

Finance Minister Sili Epa Tuioti said in his latest budget speech to Parliament that "the government will not be able to do as much in this budget as it hoped it would".

Samoa Cabinet 2018

Samoa Cabinet 2018 Photo: RNZI/Autagavaia Tipi Autagavaia

This year Sili proposed a budget with projected revenues of $US331.8 million and expects government to spend $US364.85 million resulting in a deficit of around $33 million.

Soft term financing of nearly $US28 million would reduce the deficit to close to $US5 million.

He told Parliament that a number of measures in revenue collecting, were introduced which would both improve government's overall revenue and ensure that the community was treated equitably and fairly.

Sili said instead of introducing new taxation measures, government will focus on "efforts to improve compliance".

Both revenue and government spending is projected to be down on the previous year.

However, Sili forecasted an outlook of economic growth driven by infrastructure works about to start as well as some coming to an end like the completion of the new airport terminal.

But the minister still warned there was a need to be vigilant at all times to minimise Samoa's exposure to a number of risks including climate change and natural disasters.