$938m to productive and resource sector

By EDDIE OSIFELO

THE Government has committed $938 million under the Development Budget to the country’s productive and resource sectors.

This is part of the government’s re direction policy to address the changing dynamics of the “new normal” environment.

Delivering his speech on the $4 billion budget tabled in Parliament on Tuesday, Minister of Finance and Treasury, Harry Kuma said the productive sector is very important for the country’s growth and recovery process.

He said this explains why a total of $209.8 million is allocated to the productive sector.

This includes:

1. $25 million for Agriculture Investments.
2. $25 million for Commerce and trade investments.
3. $24.8 million for Communication and Aviation investments.
4. Under Fisheries, the government is allocating $15 million.
5. Under Lands, the government is allocating$10 million.
6. Under Tourism, the government is allocating $10 million.

Furthermore, Kuma said under the Infrastructure Development, the government is allocating$100 million in total.

He said the Government has provided a total of $370.4 million in additional funding to develop the projects and activities in these areas:

1. Increase value added Industries and build a resilient economy
2. Push for an Innovative development model for Solomon Islands
3. Encourage strategic investment through the Public Private Partnership
4. And ensure we maximize economic benefits of our resources. The government promotes more value adding industries and encourages investments that add value from our resources.

Kuma said the budget allocation towards the resource sectors have been increased in 2021 under the following sectors:

1. Under Forestry, the government is allocating $10.6 million.
2. Under Environment, the government is allocating $6 million.

Further to that, he said the government had decided to allocate $342 million, including $90 million from the People Republic of China (PRC) to support rural development and growth initiatives through the constituency development programme to establish small business, construct infrastructures, and create employment opportunities in the rural areas.

He said under Mines, the government is allocating $11.8 million.

Kuma said the government is providing an additional amount of $10 million towards the COVID-19 vaccination programme in 2021.

He said 2021 development budget will be collectively funded by domestic revenue, external financing and direct budget support from our development partners.