The National Government has planned for an overall deficit of $972.6 million in the 2022 Budget with total consolidated revenues estimated at $3.559 billion and total expenditures estimated at $4.531 billion.
Finance and Treasury Minister, Harry Kuma informed Parliament last week that out of the total consolidated revenue estimates, total domestic SIG revenue is projected at $3.053 billion.
The government is confident that the balance of $972 million will be externally and domestically sourced to ensure the fiscal stability and credibility of the budget is maintained.
Of the forecasted $972 million budget deficit, government has already secured $563 million from its normal multilateral and bilateral partners, as well as from savings brought forward to 2022.
In terms of expenditures, the $4.531 billion in total consolidated expenditures consists of $3.050 billion in recurrent expenditures, and $871 million in development expenditures, of which $20 million will be budget support from the Peoples Republic of China (PRC). A total of $20.0 million is also budgeted as Contingency Warrant provision for the year.
Minister Kuma said the Government is conscious that the two shocks including covid-19 and the recent riots will severely impact the economy in 2022.
At the same time, the Government is also aware that as a developing country, we also have a very young population with increasing demand for quality social services, and more infrastructure development to boost growth in order to provide more employment opportunities.