Government spending is set to become tighter

By The Editorial Board 02 July 2025, 6:00PM

Critical. That is how the state of the nation is, beginning this new financial year. It is comparable to the country being a patient in a hospital ward who has been transferred to the intensive care unit.

No other analogy best describes the situation. How did we get here? The country’s situation has gone from bad to worse because a few people could not wait to get into power. The Human Rights Protection Party (HRPP) and the Faʻatuatua i le Atua Samoa ua Tasi (FAST) failed in all other means to remove Fiame Naomi Mataafa. The two votes of no confidence were unsuccessful, and the law did not allow for her removal. The next step was to vote against the budget. Here we are. Rushing towards an election with close to 20,000 eligible voters not yet registered, and finances for the government in a critical state because the budget had not passed.

The government announced on Tuesday, 1 July, the approval of a quarter of the budget passed in the 2024/2025 national budget for the first three months of the new financial year. This means July, August and September. Is that sufficient? Not nearly. The budget that failed was almost $200 million higher than last year’s budget, which in itself is the first indicator that the money for the first three months is not sufficient.

It has to be realised that many of the government departments, such as the Samoa Police, the medical fraternity and other government departments, have hired more staff between the last financial year and the new one. The government is the largest employer in the country and, therefore, the biggest driver of the economy. This means that spending will be tight to the extent that some services are likely to be affected.

Combined, all government offices have access to approximately $290 million. The limited allocation will prioritise critical expenditures such as public servants’ salaries and overtime for frontline and essential workers, operations of ministries and statutory bodies, pensions for the elderly, persons with disabilities, scholarships, overseas medical treatment schemes, and hospital supplies. Contracts for the importation of fuel and preparations for the upcoming general elections are also included, alongside the completion of infrastructure projects under the Ministry of Agriculture and Fisheries, such as the Atele pack house and the Savaii office.

From this month, we should see a clamp on all activities that would be regarded as unnecessary. This should include all government-related celebrations, use of vehicles, maybe shortened working hours for some, there will be no new intakes into the government, and some positions may be put on hold. The government will think twice before issuing paid notices. Caretaker ministers and other public servants need not take any overseas trips during this period.

There are also concerns for essential service workers such as nurses, police, firefighters, and doctors who, on any given day, are pulling shifts and working extra hours due to staff shortages. Will they be fully compensated for the hours they would be putting on or would overtime be held back? Will we see services in the health and security sector being held back? Will the hospital start closing early, or will the police cut back on patrolling?

The Ministry of Finance will have to juggle figures to see if some money can be moved between ministries. In the last budget, the Ministry of Women, Social and Community Development was allocated $65.6 million. Of which, $51 million was for the district grants. This means if 25 per cent is given to the MWSCD, $12.75 million would have been for the district grants. Does this money still go to the ministry, or will it be used elsewhere?

The Office of the Electoral Commission could do with a few million from there. The OEC has access to close to $850,000, not enough to hold the elections. People also need to realise that foreign aid during the caretaker period would have been put on hold as well, making things even tighter. Foreign governments prefer to deal with elected governments.

At the end of the day, one cannot enjoy champagne on a beer budget.

By The Editorial Board 02 July 2025, 6:00PM
Samoa Observer

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