Include cash reserves in budget


THE government should consider the inclusion of cash reserves in the budget within the level of cash reserves the government wants to build in 2018.

This was expressed in the parliament debate on Monday by the Member of Parliament for Auki/Langalanga.

Hon Mathew Wale said that it is important that the government budget for an adequate level of cash reserves.

“Let us budget for an adequate level of cash reserves so that the government is never in the position of not paying up its contractual legal obligations and meeting its legal commitments in any particular year,” he said.

Moreover, he spoke of how balanced budget is built on assumptions.

“We must stop the nonsense of the so called balanced budget that is built on an absolutely false assumption or the pretention that everything the government has collected will be spent on exactly the same amount in that year,” he said.

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