By EDDIE OSIFELO

SOLOMON Islands needs to continue to strive to increase small scale rural productivity as part of our ‘transformative’ agenda.

Minister for National Planning and Development Coordination, Rexon Ramofafia stressed this during his debate on the $4.6 billion budget in Parliament.

“Our country’s mostly rural population is still largely predominantly subsistent and engaged only in small holder farming, which is less efficient and the least prospective productive sector.

“We need to continue to strive to increase small scale rural productivity as part of our ‘transformative’ agenda,” he said.

Ramofafia said improving connectivity is therefore vital for inclusive income growth and prosperity.

“Easier, cheaper and more efficient movement of people, goods, services and information so that our dispersed population can share in the benefits of concentrated growth.

“Improving connectivity will also support small scale agricultural efficiencies,” he said.

Ramofafia said agriculture, fisheries, tourism, mining, forestry hold a lot of potential.

“But we also need to create the enabling environment for these sectors to thrive and to contribute at scale.

“Solomon Islands’ economic drivers will continue to concentrate activity, employment and income in high growth centres or nodes,” he said.

Ramofafia said these nodes currently are around major towns and centres, where services are concentrated.

“Other nodes with potential to expand exist around largescale processing and industrial centres, such as around mining, onshore fish processing plants and agro industry operations such as the palm oil productions and as well as around forestry and logging.

“The tourism sector also holds great potential although relatively it currently contributes minimally to GDP,” he said.

Further to that, Ramofafia said our country’s mostly rural population is still largely predominantly subsistent and engaged only in small holder farming, which is less efficient and the least prospective productive sector.

In addition, Ramofafia said energy remains critical to transformation and to empowering our people.

He said investments in renewable energy can help to lower the cost of electricity and drive economic productivity as well as contribute to general improvements in people’s wellbeing and livelihoods.

“It also supports the ability to provide and to access social services,” he added.

Moreover, Ramofafia said urbanisation is a growing issue that could also trigger other negative social impacts.

He said it is also an issue that will create additional pressures on urban services and one that we need to seriously address in order to avoid our cities and towns becoming unhealthy, inefficient and unpleasant places to live and do business in.

“Increasing climate and natural disasters will worsen the health, sanitary and safety conditions of our towns and cities and especially those of informal settlements in the peri urban areas,” he added.

By EDDIE OSIFELO

MINISTRY of National Planning and Development Coordination will be undertaking a review of the National Development Strategy, the NDS 2016 – 2035 in early 2023.

Rexon Ramofafia confirmed this during his debate on the 2023 Appropriation Bill 2022 in Parliament on Thursday December 8.

“This review is important sir, as we have now reached a midpoint in the timeframe of implementation and it is important to take stock of how we have progressed implementation and advanced national development objectives,” he said.

More so, Ramofafia said covid 19 and the recent domestic and global disruptions have affected our context and greatly changed the environment and dynamics for national sustainable development.

“It is therefore necessary for us to take stock and recalibrate.

“I wish to thank UNDP through the Governance for Resilience Project and New Zealand for committing to support us in this important activity,” he added.

Apart from the, Solomon Islands has delayed its graduation out of Least Developed Countries category earmarked for 2024.

Ramofafia said “given the shocks that we have experienced and their implications on our ability to ensure a smooth transition and preparations to put us on a sustainable footing as we progress out of LDC category, the government has invoked with the relevant UN agency, the crisis response mechanism and requested for an assessment of the impacts of the covid pandemic, the recent riots and the flow through impacts of the Russia/Ukraine war on our ability to sustainably graduate.”

He said a United Nations Inter Agency Task Force is on the ground undertaking consultations as part of this assessment with a view to providing government with key evidence to inform how we proceed with the important issue of LDC graduation.

By EDDIE OSIFELO

PARLIAMENT started scrutinising the $4.6 billion budget for 2023 in the Committee of Supply.

This after members of both the Opposition and Government completed their debates from Monday to Thursday on December 5 to 8.

All have pledged their support behind the 2023 Appropriation Bill 2022 in their debates even though some members of the Opposition have questioned its credibility.

The theme of the 2023 Budget, “Iumi Together moving Solomon Islands forward”.

Minister of Finance and Treasury, Harry Kuma reiterated the need for unity, in order to the overcome the development challenges faced by the country.

The development challenges were further exacerbated by the Covid-19 pandemic, November 2021 riots and the Ukraine war.

Kuma said the number-one priority now is to rebuild the economy.

He said this is why the 2023 budget is not a ‘business as usual budget’ but a historical budget with a deficit to accommodate once in a lifetime Pacific Games next year.

Kuma said a deficit budget is not a bad thing but how you channel the funds is important in order to finance the deficit.

He said the Government will fund the deficits from:

1. general supports from Development partners for an amount of $320 million;
2. issue of SIG Development bonds and expects to raise $400 million from that;
3. arrange for external borrowings,
4. rolling over unspent development funds to next year and
5. additional revenue policy measures.

In addition, Minister of Minister of National Planning and Development Coordination, Rexson Ramofafia said as Minister Kuma alluded to in his speech, whilst delivering the 2023 budget, the economy contracted by 4.5% in 2022.

He said inflation rose to 2.7%, in large part owing to high global fuel prices as a result of the Russia Ukraine war.

“Production and international trade have been affected as indicated by declines in exports and resultantly declines in our trade balance.

“These are but general economic indicators,” he said.

Ramofafia said the flow through impacts on people’s wellbeing and livelihoods have also been felt.

“It is very important for us to respond accordingly and implement measures that ensure that our country recovers and continues to grow, and that our people people’s wellbeing and livelihoods is protected. “Despite a challenging global and domestic environment and context, we must continue to maintain the focus on advancing our country and moving our people forward,” he added.