Samoa S Cloudy Sky

... A Silver Lining In

From Felise Va’a in Apia

Under fire for most of his term as Western Samoa’s Minister of Finance, Sam Saili bounced back to present a picture of a healthy economic situation for Western Samoa during his Budget speech to the Legislative Assembly in November.

Saili reported that government expenditure for 1975 will be SWSIS.I million. When capital project aid and soft-term loans are taken into consideration, this will be increased to SWS2O.6 million.

“This total includes just over $8.9 million of expenditure which is related solely to development projects, and thus approximately 43 per cent of next year’s total government expenditure will be used for developng our country”, said Saili.

The large proportion given to development is mainly due to a 16.1 per cent increase in government revenue expected in 1975. Of the

total estimated revenue of $13.58 million in 1975, only $10.57 million has been allocated to government current expenditure representing only an 8i per cent increase over 1974.

Statutory expenditure of $989,000 has risen by 21.8 per cent over 1974 due mainly to increases in MPs’ salaries and higher debt-servicing requirements.

Present total debt servicing costs represent only 5.67 per cent of the total ordinary revenue. “This figure is still very low by international standards as international lending institutions conservatively regard 11 per cent-12 per cent as approaching a reasonable limit”, admitted Saili, thereby confirming what the Opposi tion had argued all along.

Government’s current expenditure is geared mainly towards the pro vision of more efficient social ser vices. Thus Education gets the most