Finance & Treasury Minister Sogavare tables the 2025 Appropriation Bill 2024 seeking Parliament approval for a total of $4,832,273,739 for state operations and services, dubs it a tight budget in light of the government’s poor fiscal situation
MINISTER of Finance and Treasury, Manasseh Sogavare has described the $4.8 billion budget for next year as ‘tight’ as he tabled it in parliament yesterday.
The 2025 Appropriation Bill 2024 seeks Parliamentary approval for a total expenditure of $4,832,273,739 to fund government operations and services for the year.
“As usual, the 2025 budget is a very tight budget and the government will need to realistically plan and prioritise its activities in order to achieve tangible outcomes within the 2025 financial year and avoid any commitments that will further derail government’s fiscal situation.
“In this regard, the government has taken a drastic decision to reduce overall SIG expenditure within the SIG revenue estimates in order to maintain fiscal stability and affordability of the government fiscal plan in 2025. This is to ensure funding is always readily available to pay all government supplies on time,” the Finance and Treasury emphasised.
On the budget outlook, Minister Sogavare said the government has planned for an overall deficit of $1.274 billion in the 2025 budget, with total consolidated revenue estimated at $3.877 billion and a total of $5.152 billion in expenditure to provide efficient and more quality services for our people.
He said of the total consolidated revenue, total domestic SIG revenue is estimated at $3.781 billion.
“The government remains confident that the balance of the $1.274 billion will be financed from both external and domestic sources to ensure the fiscal stability and credibility of the budget is maintained. “Of the $1.274 billion projected budget deficit, the government has already secured $870 million from its normal multilateral and bilateral partners,” he said.
Minister Sogavare said the government remains hopeful to fund the remaining $404 million from other donor partners and domestic sources during the year.
He said the $5.152 billion in total estimated consolidated expenditure consists of $4.099 billion in recurrent expenditures and $956.7 million in development expenditures.
“A total of $220 million is also budgeted as contingency warrant provision for 2025.
“On revenue estimates, the total revenue estimate for 2025 is $3.878 billion,” he said.
This consists of $3.782 billion in normal government revenue and $95.9 million in budget support revenue from our donor partners.
“In terms of funding sources, the total domestic revenue is expected from the following sources.
- Inland revenue division, $2.247 billion.
- Customs and Excise, $1.038 billion.
- And other ministries, $496.3 million.
Minister Sogavare said the level of revenue estimates for both IRD and Customs are relatively higher than in 2024.
He said the growth in revenue for both sources are in line with the forecasted economic growth for the year, and ongoing revenue enhancement measures planned for the year (in both divisions.
“All sources of revenue under the IRD including company tax, personal tax, withholding tax, goods tax, stamp duty, and license fees, are also forecast to increase in 2025.
“The same picture also, is foreseen for all revenue sources under the Customs division, namely import duty, export duty, excise duty, and fees, charges, and others,” he said.
Debate on the Bill will commence on Monday 9December.
By EDDIE OSIFELO
Solomon Star, Honiara
