BY NED GAGAHE

During the Second Reading Debate of the 2025 budget on Tuesday, MP for Central Honiara, Gordon Darcy Lilo raised concerns over the country’s escalating national debt, particularly the substantial increase in debt servicing outlined in the 2025 budget.

Lilo warned that national debt servicing has nearly doubled compared to previous years, pointing to a growing financial strain that could jeopardize the country’s long-term economic stability.

The MP for Central Honiara highlighted that the rising debt burden will likely contribute to a widening gap in the national budget, primarily driven by debt financing.

Lilo said the country continues to struggle with the fiscal impact of debt repayments, which now consume a larger portion of government revenue.

Lilo expressed worry that without careful management, the debt-driven budget deficits could undermine the government’s ability to fund essential services such as health, education, and infrastructure.

“The increasing reliance on debt financing is a significant concern. If we continue down this path, it will not only strain our budget but could also lead to economic decline,” Lilo said.

“Our budget is being driven by borrowed funds, which limits our capacity to invest in other critical areas that would help our economy grow.”

Lilo also questioned the government’s ability to manage this mounting fiscal pressure, particularly in light of the uncertainties surrounding future financing.

He pointed out that negotiations for loans from international institutions like the World Bank and the International Monetary Fund (IMF) could be lengthy and challenging, further delaying any relief from the financial gap.

Lilo urged the government to prioritize transparency and provide clear details on the sources of financing, including where the country would obtain the funds needed to cover its growing deficit.

He also recommended that the government closely monitor its discretionary spending, emphasizing the need to focus on maintaining essential services while managing debt-related expenses.

BY JOHN HOUANIHAU

The leader of the independent group and Member of Parliament for East Are’are, Peter Kenilorea Jnr, has urged government members to use appropriate language when communicating with public.

During the parliamentary debate on the 2025 Appropriation Bill 2024 this week, Kenilorea expressed his concerns regarding the messaging strategies of MPs and their implications for public understanding.

He said that it is often the case that MPs overstate their roles as government representatives through their choice of words.

“We will increase, so, so, so. Terms like ‘increasing’ are misleading. Regarding fisheries, the notion of increasing catches is not our responsibility, Mr. Speaker. That task lies with the private sector, specifically those who possess the expertise in fishing,” said the MP.

“We will be cultivating cassava. It is not our direct responsibility; rather, it will be the community that undertakes this task. It is crucial that our messaging reflects our role in supporting and facilitating the creation of a framework that allows for growth and development,” he said.

He emphasised the necessity for members of Parliament, as representatives of the government, to avoid overstating their capabilities regarding their statements and proposed actions.

“I frequently encounter this type of rhetoric. Even prior to the Public Accounts Committee meeting, we see enthusiastic ministries proclaiming their intentions, suggesting that they will achieve this or that. Such declarations create significant expectations among the public. If we are not cautious, we risk setting ourselves up for failure and disappointment due to these heightened expectations,” Kenilorea said.

“I believe it is essential for us to communicate accurately regarding our roles as policymakers and the objectives we aim to accomplish,” he added.

He said that, as a small nation, much depends on the effectiveness of government delivery, and that the language used must be refined.

“It is essential for the public to grasp the true purpose of government. Our role is not to impose increases; rather, we aim to facilitate, support, and create an environment conducive to development,” he said.

By Indy Maealasia

CHAIR of the Public Accounts Committee (PAC) Gordon Darcy Lilo has issued a strong reminder to the Ministry of Education and Human Resource Development (MEHRD) of the importance of internal audits to effectively asses the ministry’s performance.

Lilo yesterday in parliament stressed that “it is important because it will be the basis that shows whether your ministry is improving”.

As the Member of Parliament for Central Honiara, Lilo told MEHRD Minister Tozen Leokana that internal audits provide the ministry with a “clear picture” and a powerful tool that must be utilised.

The PAC Chair further called on Parliament to support the ministry in carrying out this vital activity, noting, “Although it is a small allocation in the budget, we must support it.”

In response, Mr Leokana affirmed that internal audits are a crucial yearly activity carried out by his ministry.

He stressed that this yearly audit is conducted on areas such as school grants and teacher performance among others.

By Loretta B Manele

Decentralizing development to the provinces is key and government wants to ensure that at least two or three projects are in each province.

Rexon Ramofafia, minister for National Planning and Development Coordination expressed this whilst contributing to the debate of the 2025 Appropriation Bill 2024 in parliament on Monday this week.

He voiced that the government is encouraging this and is trying to make sure that almost every province will benefit from the budget.

“So, you will know that projects like upgrading of airports, health and education are happening in our provinces.”

Ramofafia said a number of projects are now focused on improving infrastructure in Malaita province.

In this regard, he said the minister for MID (Ministry of Infrastructure Development) had recently signed an implementation of the Auki Road Tar-Sealing Project which is in Auki Langalanga constituency.

“Other projects also taking place in Malaita is the rehabilitation of Kilu’ufi hospital and the other project is the upgrading of South Road, East Road.

“I think the upgrading and tar-sealing roads in Malaita is important and it is something that we thank the GNUT government for prioritizing including the Bina Harbour Tuna Processing Project.”

Ramofafia said his role in the Bina Harbour project now is to try to find financing for the project, including the minister of finance, because assurance from the ministry responsible and project office is that the project is now ready.

“I think the key role before the government now is to secure the funding costing around US$202 million so this is not a small project.”

BY NED GAGAHE

Opposition Leader Matthew Wale has called on government to implement a cohesive, long-term strategy to eradicate poverty in the Solomon Islands,

He criticised the 2025 Appropriation Bill for its lack of meaningful solutions to address the nation’s deepening poverty crisis.

In his speech during the second reading of the 2025 budget yesterday, Wale said poverty continues to be a persistent and systemic issue in the country, with many Solomon Islanders facing daily struggles to meet their basic needs.

He argued that the government’s policies thus far have offered insufficient relief, and merely stating an intention to alleviate poverty is inadequate in the face of the urgent need for transformative change.

“The government must articulate and implement a clearly defined anti-poverty strategy that goes beyond rhetoric.

“We need a policy grounded in rigorous analysis of the root causes of poverty, one that can deliver real, transformative outcomes.”

Wale pointed out that poverty is not just an urban issue but is felt deeply in rural areas, where many communities struggle with a lack of access to basic services, education and employment opportunities.

He stressed that unless government takes bold action and reforms existing systems, poverty will continue to trap future generations in a cycle of hardship.

Citing past income surveys, Wale highlighted the growing depth and breadth of poverty across the country, with the gap between the rich and the poor continuing to widen.

He called on the government to acknowledge its role in addressing this issue.

“If the government does nothing to address poverty inside households, then it is failing the very people it is meant to serve.”

He also underlined government’s failure to adequately invest in education, healthcare, and social services has left many families without the means to escape poverty.

He argued that a lack of strategic planning and insufficient budget allocations have resulted in continued deprivation for the most vulnerable communities in the country.

“We can eradicate, totally eradicate poverty from within our population. Sir, to achieve meaningful change, government must articulate and implement a cohesive, clearly defined anti-poverty strategy, one that is grounded in rigorous analysis of the root causes and one that is capable of delivering transformative outcomes, where the transformative government is, was formed for. So, it is a very important thing.”