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Govt urged to watch spending
By
Reporter
OPPOSITION Leader Sir Mekere Morauta this week cautioned the government of a possible expenditure blow out of the 2009 Budget as a result of a substantial erosion of the revenue base coupled with reckless spending by the Somare Government. Sir Mekere urged the Government to set aside a large part of the K3 billion held in trust accounts to off set shortfalls in the 2009 budget. The Government must seriously consider establishing a budget stabilisation fund. Sir Mekere made this call after the Internal Revenue Commission estimated that the revenue for 2009 will drop by K1.5 billion due to fall in commodity prices. A global recession has reduced demand for commodities by the world's major economies, causing the prices of the raw materials we export to decline up to 40%. He said the informed commentators see the recession lasting well into 2010. "The people are increasingly concerned about the apparent recklessness in the way their money is being spent by the government. Projects funded from the Trust Accounts are those chosen by Members of Somare's cabinet. The scrutiny inherent in the budgetary process is being deliberately avoided. The Trust Fund is becoming a secret one to fund secret projects. "What are the government's priorities? They are not funding health services. We hear of hospitals and health centres closing down due to lack of drugs, or no pay for health workers. "Health Minister Sasa Zibe said Port Moresby General Hospital lacks the capacity to support the NCD population, yet the government withholds K20 million to fund upgrade of facilities at the nation's premier referral hospital. "They are doing nothing about problems affecting our schools. In one school in NCD classes are being conducted under a tree. In Grace Memorial Secondary School in Wau, teachers are forced to share a house, and classes are being held in the dining hall because of lack of classrooms. "Where is the promised K230 million for infrastructure development in schools throughout the country? Has the government diverted this elsewhere?" Sir Mekere said the government appears to be employing a band aid approach to addressing major issues in the country. "We live in tough times. The government has to be very careful with the projects they choose to fund. We cannot afford to waste our financial resources. The country does not have a bottomless river of financial resources to play around with," he said. |
NEWS
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