Resource and productive sector budget maintained

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Hurry Kuma Minister of Finance and Tresury
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By EDDIE OSIFELO

THE Government has maintained the $580.2 million for the resource and productive sector in the 2022 Budget.

This is the same estimate made in the 2021 budget where $370.4 million was allocated to Resource sector and $209.8 million allocated to the Productive sector.

However, in the 2022 Budget analysis, it increased the social sector to $130.6 million and $220.8 million to Fundamental.

These estimates are part of the $950 million Development Budget, up by 1.1% from $939.8 million in 2021 Revised Budget.

A total of $4.16 billion budget by the Minister of Finance and Treasury, Harry Kuma is expected to be tabled in Parliament next month.

When he tabled the 2021 budget, Kuma said government had decided to redirect its policy after thoroughly reflecting  on our past drawbacks and using this experience to set the basis for future  growth and further development in our country.

He said the actual government spending on investment projects in both the  productive and resource sectors had drastically declined over the last three years.

“For example, in 2018, government spent $557.5 million on investment  projects in both the productive and resource sectors.

“This further declined  to $412.5 million in 2019 and to $355.5 million in 2020,” he stated.

Kuma said this downward trend is a concern to the government.

“Both the productive and resource sectors are important pillars of the economy.

“If Solomon Islands economy is to grow and provide jobs for the growing population, then adequate financial resources must be allocated to both the productive and resource sectors.

“This explains why government has redirected resources  and increase budget allocations to both sectors to $580.2 million in 2021,” he said.

Kuma said in this trying time, it is very important that our limited financial resources be prioritised and only focus on economic activities that would provide the highest socio-economic benefits to our people.

Under the productive sector:

  1. $25 million for Agriculture Investments.
  2. $100 million for Ministry of Infrastructure Development
  3. $24.8 million for Communication and Aviation investments.
  4. $15 million for Fisheries
  5. $10 million under Lands, Housing and Survey
  6. $10 million for Ministry of Culture and Tourism
  7. $25 million for Commerce

Resource Sector:

  1. $11.8 million for Mines and Energy
  2. $342 million for Rural Development
  3. $6 million for Environment

Social Services Sector:

  1. $90 m for Education
  2. $202.5 m for Health
  3. $10 m for Police
  4. $31.5 m for Provincial Government
  5. $5.5 m for Home Affairs
  6. $3 m for Women and Youth

Fundamental:

  1. $10m for Finance and Treasury
  2. $201.4m for Office of Prime Minister and Cabinet
  3. $8.4 m for Development and Planning
  4. $1m for Justice and Legal Affairs

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