Gov’t Braces For Global Economic Recession

Gov’t Braces For Global Economic Recession

The Government is proactively tightening expenditure as the nation braces for signs of the imminent global economic crisis.

Prime Minister Dr Derek Sikua said the CNURA regime is taking responsible measures, particularly, on public spending to ensure critical services such as health and education continue to operate.

Responding to concerns from Opposition Leader Manasseh Sogavare in Parliament today, Dr Sikua said the CNURA regime has commenced taking appropriate steps and actions to ensure the impacts of the downturn on the national economy are minimized.

Two immediate steps already taken in the last two months included the commitment of SBD$38 million to finance the free fee education policy and the financing of students studying in overseas institutions.

These two steps are taken without dependence on donor-support.

The implementation of the free fee education policy has already reduced the financial burden on fee payers in light of the rising cost of living, limited job and income generating opportunities in rural areas

On the other hand, the Government is also putting in place strategies to ensure that revenue generation and collection remain strong throughout the difficult period ahead.

The Government has already developed and finalized a broader Policy Strategy to help deal with the impacts on the global economic crisis.

Dr Sikua said the Government expects the impact on the economy to pinch at the end of this month and officials are examining all options to ensure the country is able to address these challenges.

“We are prioritizing public spending to make essential services our highest priority and ensure these services continue to run and operate”

“We are continuing to implement important policies that help to grow our country, including the fee free education policy and implementing the economic reforms that make Solomon Islands an easier and better place to do business and create jobs,” Dr Sikua said.

The Government is not the only entity taking actions ahead of the expected impacts as Government officials work closely with donors and Financial Institutions to seek wide ranging views and opinions on the issues.

Government officials are also collaborating with the Central Bank and other stakeholders to ensure that whatever policy the Government is taking remains appropriate and can work for Solomon Islands.

Dr Sikua said the Government is absolutely committed to handling the economic challenges our nation faces with responsibility and care.

“We are approaching the challenges responsibly to make sure the policy interventions are appropriate for us,”

ENDS

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