Budget

Cook Islands

deficit

Fhe Cook Islands government revealed the biggest budget ieficit in 20 years when it tabled its budget for the year to July 1993 in Rarotonga on December 3. The deficit of $US3 million :omes mostly from the October Festival of Pacific Arts.

Prime Minister Sir Geoffrey Henry has told parliament extraordinary expenses were incurred by the festival, but he lays the cost has been well under the SUS2.3 million mark ivhich had been predicted for the event.

He promised the deficit will be wiped out by the time of the lext budget and replaced by a surplus. Sir Geoffrey says the 2ook Islands is likely to increase its revenues from tourism and ts gross domestic product should continue to rise by five per :ent a year despite worldwide recession.

The leader of the opposition Democratic Party, Terepai Vlaoate, has accused the government of creating an artificial iconomy. Maoate says the budget is what he calls a patch-up ob based 90 per cent on loans.

Costs for the arts festival included beautifying the entire sland with $500,000 worth of trees and plants and building a &NZ11.6 million cultural centre — the main venue for the estivities.