Solomons Finance Minister: Gov Cash Flow Crisis Is Over

More than $400M was appropriated for in the supplementary appropriation bill, skeptics believe gov’s slow response to bills from service providers does not speak of a gov with a stable cash-flow situation

By Aatai John

HONIARA, Solomon Islands (Solomon Star, September 05, 2017) – The government’s cash-flow crisis is over, Finance minister Snyder Rini says.

“The cash-flow crisis which the country experienced recently is not an issue anymore as revenue generation is back on track,” Mr Rini told parliament last week at the passage of the 2017 Supplementary Appropriation Bill.

More than $400 million was appropriated for in the supplementary appropriation bill.

With the passage of the bill, Mr Rini said the assumption of poor government cash-flow is now water under the bridge and that the government will now be able to shoulder all its financial commitments in priority areas that touch the lives of Solomon Islanders.

In addition, he said the national inflation rate is improving to a point that is good for the current state of the economy.

The Government has been experiencing cash-flow issues since early this year that resulted in the non-payments of its bills and other financial commitments.

Mr Rini attributed that to the slow start of economic activities at the beginning of the year, which he explained was normal.

He said the government responded to that by bringing forward cash from last year to fill the gap.

Despite the assurance from the finance minister, skeptics believe government’s slow response to bills from service providers does not speak of a government with a stable cash-flow situation.

Solomon Star
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