HONIARA (Pacnews) — With the Solomon Islands economy in deep trouble, the country’s parliament has passed the controversial 2002 Budget Act.
The 2002 Budget estimates of revenue seem optimistic, while the spending forecasts—if they are to be met—will require unprecedented discipline by the Solomon Islands government.
It was a budget debate that claimed one notable victim. The finance minister who introduced it, Michael Maina, was sacked for announcing a 25 percent devaluation of the Solomon Islands dollar in his budget speech.
The minister appointed to replace him, Laurie Chan, reversed the devaluation, bumping the value of the Solomon Islands dollar back up to its former level.
He is now watched over the rest of Maina’s budget being endorsed by the Parliament.
Among the measures to restrain spending is a cut in the government’s payroll from about $27 million to $21 million.
Last year, however, the payroll blew out by more than 30 percent to over $37 million, which means there will have to be huge cuts in the numbers being paid if that new target is to be achieved.
