THE government recorded a large fiscal deficit of $112 Million in February as opposed to a surplus of $26 Million in January this year.

Chairman of the Public Accounts Committee (PAC) and Member of Parliament for Small Malaita, Hon Rick Hou, made the statement on the floor of Parliament this week on the 2017 Supplementary Appropriation Bill.

This is the result from a 48 percent surge in total expenditure to $295 million while total revenue dropped by 19 percent to $183 million.

According to Central Bank Solomon Islands (CBSI) information, the fall in Government revenue was driven largely by a 17 percent decline in tax receipts to $172 million.

Similarly, non-tax revenue fell to $11 million in February from $18 million in the previous month, following lower collections from fishing licences.

At the same time, there was a sharp increase of 26% in recurrent spending to $242 million and a $46 million increase in development expenditure to $53 million.

“On a brighter note, total Government debt stock continued the downward trajectory since December 2016, to $675 million at the end of February 2017.

“This represents 8 percent to GDP – one of the best by all standards,” said Hon Rick Hou.

When touching on the 2017 Supplementary, Hon Rick Hou said the Bill seeks Parliamentary approval for a total supplementation of $13,746,052 comprising of Recurrent Expenditures of $8,000,000 by Contingencies Warrants (CW); Recurrent Expenditures of $1,046,052 by Advance Warrants (AW); and Development Expenditures of $4,700,000 by Variation.

“As the Minister of Finance pointed out when he moved the motion last week, there is no new supplementation under this supplementary bill.

“And as well, it is not a very big sum of money, comparatively speaking,” Hou added.