Government delivers balanced budget
The Minister for Finance David Adeang has
delivered a balanced budget with a small surplus, noting that
modest economic growth is expected over the next two
years.
In handing down the 2017/18 budget, Mr
Adeang told Parliament it provides for $128.7 million in revenues
and $128.6 million in expenditures.
He said Nauru's development partners are
expected to inject another $28.8 million during the year
ahead.
The minister added that despite a downturn
in the economy, the Government does not plan to introduce any new
taxes to maintain current services or to fund 50th independence
anniversary celebrations in 2018.
$3.3 million has been set aside for those
celebrations, $5.5 million has been allocated for the Nauru
Community Housing Scheme, and $1.2 million will fund the school
toilet maintenance program.
Another $500,000 will go towards
completing the Learning Village phase 2
project.
The budget has been aided by a slight
increase in fisheries revenues to $43.4 million, while customs
earnings are expected to remain the same as this year at $17.1
million.
Those earnings will help offset a forecast
$6.5 million decrease in taxation revenue from the loss of foreign
workers at the Regional Processing Centres, plus a $12.7 million
drop in government revenues caused by uncertainty surrounding the
number of refugees who will be resettled in the United
States.
Mr Adeang said the budget implements major
reforms in public financial management that are consistent with
international financial management best
practice.
"This budget maintains fiscal
responsibility in an environment of economic contraction," he
said.
"It provides for a fitting celebration of
our 50th year anniversary and manages to lock in significant
proportions of the budget for future investment in the
community.
"It is consistent with the Government's
ongoing fiscal strategy and shows continuing resolve to both the
people of Nauru and our development partners."