The Solomon Islands Finance Minister says the 2012 Budget is under pressure from a lower growth in taxation revenue than was estimated in the original budget.
Delivering the Supplementary Appropriation Bill on Tuesday, Rick Hou said overall revenue, while still growing solidly from 2011, is now estimated to be 140 million dollars less than the original 2012 estimate.Mr Hou said the government, however, will manage expenditure to address this pressure while avoiding general reservations and ensuring urgent needs are met.
He said the revenue pressure will be offset largely by estimated under spending on the 2012 development budget due mainly to delays in passage of the 2012 Budget and other implementation issues.
Rick Hou said to date, approximately 50 per cent of government development funds for 2012 have been spent.