The Government tabled the 2017 National Budget at Parliament house on Tuesday.
The total budget for next year is set at K12.9 billion with the Government focusing on cutting spending and introducing new revenue streams to weather down the current economic downturn.
So here are the key points to take out from the tabling of the 2017 budget:
- revenue falling by 2 per cent
- spending cut of 3.5 per cent
- major spending cuts were to capital investment, by 21 per cent
- 2017 elections, allocating 400 million kina
- 250 million for the hosting of the 2018 APEC meeting
- Government is hoping to raise an extra K620 million through new taxation measures. These taxation measures include:
- increasing duties on alcohol and tobacco
- increasing the tax on bookmakers’ turnover
- Government is also taking a bigger share of taxes from gaming machines,
- increasing its levy on diesel
- almost quadrupling the passenger departure tax from the current K30 to K114
- Interestingly, the tougher tax approach does not extend to petroleum companies, which will benefit from a cut in their tax rate from 45 or 50 per cent, to 30%
- Education K1.16 billion
- Health K1.22 billion
- Law and Order K1.12 billion
- Provinces K3.6billio
- SME K30 million
From the above, it can clearly be seen that the Government has given priority to the 2017 elections and the APEC meeting the following year.