Congress passes $1.1 billion budget without amendments

Our reporter/

Apia, Samoa – March 13, 2024 – Parliament last night passed the 2024/2024 Budget Estimates which included no changes to the 1.1 billion tala budget which contains funding for two new ministries and the Samoa Export Board.

The new Land Survey Department will be responsible for the management of all government owned land currently managed by the Samoa Land Corporation, MNRE, STEC and the Land Commission and has a budget allocation of $8,538,886.

The new Department of Sports and Recreation, which will also oversee sports facilities, has a budget allocation of $8,218,889.

The Samoa Export Authority, under the Ministry of Public Enterprises, has been allocated $1,213,804 in the new budget.

Civil servants also receive the final stage of the cost-of-living adjustment (COLA), which is designed to increase the purchasing power of civil servants.

During this phase, all employees up to the C-level will receive a 3.0% salary increase. Employees above the C-level to below the CEO level will receive a 2.0% salary increase, while CEO-level employees will receive only a 1.0% salary increase.

Deputy Opposition Leader Fonotoe Lauofo speaks on the budget.

In his budget speech, Finance Minister Lautimuia Uelese Vaai said the government would not introduce or increase any taxes in the 2024/2025 financial year, but would focus on improving tax compliance given the high level of economic activity forecast.

Total revenue is expected to increase by 7%, with external grants increasing by 18%, equivalent to 30.4 million tala in nominal terms, and general revenue increasing by 4%, equivalent to 33.3 million tala in nominal terms.

Economic dynamics:
* Strong economic activity since the border reopened in August 2022, including the steady return of tourists and family visitors, has driven a stronger-than-expected economic rebound.

• The annual growth rate to the end of December 2023 is 10.2% higher than in December 2022.

The minister forecast a stable economic outlook, predicting growth of about 6.6% this year, and further increasing to 5.8% in 2024/25 compared to the initial forecast of 3.9% in the previous fiscal year.

• Annual inflation Inflation remains elevated but has gradually declined from a peak of 12.0% in June 2023 to 5.9% in March 2024. This largely reflects a sharp decline in imported inflation from 14.5% to 5.1% and a sharp decline in domestic inflation from 9.2% to 6.0% over the same period.
• Total official foreign exchange reserves It reached an all-time high of 1.3 billion tala in February 2024, equivalent to 13.1 months of imports.
• Public Debt The debt-to-GDP ratio continued to decline to 30.6% at the end of December 2023, reflecting a reduction in the debt stock of Tk865 million and improving GDP growth.
• Tourist Arrivals In the first eight months of this fiscal year, the number of tourists increased by 81.2% to 121,521 compared with the previous fiscal year. As a result, tourist revenue soared by 91.8% to about 419.8 million tala from 218.8 million tala.
• money transfer Inflows in the first eight months of the current fiscal year increased by 2.2 per cent to Tk580.3 million.

Jom: The new budget will allocate an additional Tk20 million for hosting the event, which will be used for catering, accommodation, accreditation, reception, security, health and emergency services, communication and IT services, transportation and venues.

Parliament is in session.

Budget breakdown for each ministry and office for the 2024/2025 fiscal year:

1. Department of Agriculture and Fisheries – $20,434,017
   * Includes a Government grant to the Samoa Scientific Research Organisation – $5,169,426
   * Donated $100,000 to the Humane Society

2. Department of Commerce, Industry, and Labor – $20,787,951
   * Includes a Government grant to the Samoa Tourism Authority – $9,572,575
   * Donated US$350,000 to the Samoa Chamber of Commerce
   * Donated US$350,000 to the Samoa Business Center
   * $3 million to the Micro, Small and Medium Enterprises Fund through the Samoa Business Centre.

3. Ministry of Communications and Information Technology – $10,432,093
   * Includes $2,657,513 in government grants to the Office of Regulation

4. Department of Education and Culture – $135,466,017
   * Includes a Government grant to the Samoa Qualifications Authority – $6,600,317
   * National University of Samoa – $18,074,138
   * One government school grant – $18 million
   * Samoa Arts Council – $50,000

5. Department of Sports and Recreation – $8,218,889
   * Third-party output – $3,288,304, a Government grant to the Samoa Sports Facilities Authority

6. Treasury – $117,790,778
   * Includes $37,500,000 in Old Age Pension and Disability Benefits, administered by the Samoa National Provident Fund
   * Provided a highly concessional loan of US$3 million to the Development Bank of Samoa

7. Department of Foreign Affairs and Trade – $30,191,493
8. Department of Health – $156,664,219
   * Includes government grant to National Kidney Foundation – $10,996,100
   * $200,000 for non-communicable disease clinics
   * Donated US$100,000 to the Samoa Red Cross
   * Donated $100,000 to the Samoa Cancer Society
   * Donated $100,000 to the Goshen Trust
   * Donated $100,000 to the Matuaileoo Environmental Trust (METI)
   * Donated US$50,000 to the Samoa Family Health Association

9. Department of Justice and Courts Administration – $22,632,720
   * Includes $450,000 for legal aid services
   * $5 million for the construction of the Savaii Courthouse
   * Ministry of Natural Resources and Environment – ​​$22,722,736
   * Includes $4,486,273 in waste management services contracts

11. Land Survey Department – ​​$8,538,886
12. Department of Police, Prisons and Corrections – $58,333,194
    * Third-party output – $14,261,102, a government grant to the Fire and Emergency Services Administration

13. Department of the Prime Minister and Cabinet – $11,008,147
14. Department of Customs and Excise – $14,436,486
15. Department of Women, Community and Social Development – ​​$65,665,347
    * Includes $51,000,000 for regional development initiatives.

16. Department of Works, Transport and Infrastructure – $50,762,039
    Third-party output – $43,238,426, including:
    * $3 million in community services funding to the Samoa Water Authority
    * The power company pledged $3 million in community service obligations
    * EU provides $5,050,000 in budget support to Samoa Water Authority
    * Government grants $32,188,426 to Land Transport Authority

17. Office of the Attorney General – $5,642,267
18. Samoa Audit Office – US$4,431,763
19. Office of the Commissioner of Elections – $3,392,353
20. Office of the Legislative Clerk – $8,402,796
21. Office of the Ombudsman – $1,727,923
22. Public Service Commission – $13,372,015
23. Samoa Statistics Bureau – $5,567,770
24. Law Reform Commission – $1,522,256
25. Department of Public Enterprises – $4,788,468
    * Includes US$1,213,804 for the establishment of the Samoa Export Authority