Gov’t cash reserves drying up
THE country’s cash reserves have continued to plunge for at least two months, ADB 2017 Report reveals.
The report highlights the 2017 cash balance decreasing and that cash reserve to balance cash deficit will continue unless tough measures are taken.
This year’s financial break down is recorded as very critical compared to 2014 when the country’s cash reserve made a huge turn around.
In its recommendation, ADB suggested that rebuilding the cash reserves by prioritising expenditure, increasing infrastructure investment and also strong fiscal rules to protect debt sustainability is a vital step to consider.
ADB is putting strong emphasis on rebuilding building cash reserves and at the same time taking into account expenditure prioritisation.
The report says the country’s Gross Domestic Product (GDP) is growing, but there is no sustainable footing to drive new economic developments.
The report also says that reliance on logging is a growing risk and that the country needs to find other sectors to drive the economy.
ADB highly recommends that the country needs to develop new growth drivers in effort to improve the economy.