Treasurer, Patrick Pruaitch, has supported calls by the Treasury Department for an early 2016 Supplementary Budget.
The Department’s 2016 Mid-Year Economic and Fiscal Outlook gave early warning signals on the need for urgent Government action on a sustainable budget.
Treasury Secretary, Dairi Vele, has recommended that the 2016 budget spending be reduced by K1.9 billion in expenditure to K10.8 billion to bring it in line with revenue falls.
Pruaitch agrees with Secretary Vele that an early Supplementary Budget would have an immediate positive impact on financing and cash-flow related issues.
This follows release of the Mid Year Economic and Fiscal Outlook report by the Department of Treasury which shows that economic growth this year will fall to 2.2 per cent from the earlier projection of 4.3 per cent in contrast to the high growth rates in 2014 and 2015.