BY JOY OFASIA
Finance and Treasury Minister Hon. Rexon Ramofafia is asking Parliament to approve a temporary spending arrangement for the start of the 2027 financial year, after political instability delayed work on the 2027 Budget Strategy Paper.
Speaking in Parliament, Minister Ramofafia said the Government needs more time to prepare a credible budget based on the country’s realistic revenue position.
“The unprecedented political instability has also contributed to disruption and the delay of approval of the 2027 Budget Strategy Paper over the past few days,” he told Parliament.
The Minister said preparing a realistic 2027 Budget is one of the first important tasks of the GREAT Coalition Government. He said the Government must ensure that planned spending matches the revenue it can realistically collect.
He said the process is aimed at helping stabilise the country’s financial position and putting government finances on a more sustainable and responsible path.
“This exercise, sir, I mean, we need time,” Mr Ramofafia said.
With the 2027 Appropriation Act expected to be delayed, the Minister said the Constitution and the Public Financial Management Act 2013 allow Parliament to approve temporary spending before the new budget law takes effect.
Under the proposed arrangement, the Finance and Treasury Minister would be able to authorise money from the Consolidated Fund to keep essential government services running.
The temporary funding would cover normal recurring expenses and ongoing development contracts that were previously approved by Parliament.
However, the Government would not be allowed to increase spending beyond the level of services provided during the previous financial year.
The temporary authority would remain in place for up to four months from the beginning of the 2027 financial year. It would end earlier if the 2027 Appropriation Act comes into force.
The Government is therefore seeking Parliament’s approval for the interim arrangement while it continues consultations, reviews expected revenue and completes the 2027 Budget.
The move is intended to prevent disruption to public services while giving the Government enough time to prepare a budget that better reflects the country’s financial situation.
