Samoa's capital Apia Photo: Government of Samoa
Samoa's new Minister of Finance Lautimu'ia Afoa Uelese Va'ai has sought approval to spend about $27.8 million tālā (about NZ$16m) extra for the remaining months of the financial year ending 31 May 2024.
Lautimu'ia was speaking as he tabled a supplementary budget saying the government has stuck to its policy of reducing borrowing.
According to Lautimu'ia, since lifting Covid-19 restrictions the country's ability to service overseas debts is up 8 percent.
Samoa's official government debt stands at $907.50 million, equivalent to 35.6 percent of GDP, as of 30 June.
He said the cost of the supplementary budget will be met by tweaking spending in areas of government that have not got urgent need for spending.
Lautimu'ia told Parliament that the government is committed to keeping spending under the targeted 3.5 percent threshold of spending (currently stands at 3.4 percent) over income.
Tourism is still being seen by the FAST Government as Samoa's main earner with expected earnings from visitors from New Zealand and Australia at an estimated $159.6million tālā.
Lautimu'ia, who is also Minister for the National Provident Fund, announced a bonus of 2.45 percent for all fund contributors at a cost of $24.71million tālā.
He said this will be made available 10 January 2024 in time to help meet back to school costs for school children.
The supplementary Budget will now be discussed in committee and will report back January 2024.
