06 Feb 2024

Ministries recurrent expenditure shows an overall increase of 5.7 per cent over the approved recurrent budget for the current year, says Minister of Finance, Ms Peggy Serame.

Delivering the 2024/25 proposed budget on Monday, Ms Serame said the total proposed budget expenditure was estimated at P63. 740 billion.

She said the major contributors of the increase were the obligation to pay five per cent adjustment of salaries and allowances for public servants as well as  adjustment of social welfare benefits, terminal benefits of councillors, provision for vehicle replacement and the re-sponsorship of government funded tertiary education students.

She noted that the provision for increasing the number of council wards, councillors andMembers of Parliament as well as the maintenance of facilities also contributed to the growth of the budget.

Ms Serame said the third largest share of the proposed budget amounting to P9 480 billion was allocated to the Ministry of Local Government and Rural Development to support initiatives aimed at improving local governance and strengthening social and community driven economic development at the local level.

“This budget represents an increase of P1.226 billion or 15.3 per cent compared to the approved budget of the 2023/24 financial year. 

P924 million of this budget is allocated for councillors termination benefits, and the operational expenses of upgrading sub-districts,” she said.

Minister Serame also said it would enable the operational expenses of upgrading sub-districts into fully fledged districts and the projected growth in the number of council members and council wards as well as an increase of the allowance for Village Development Committees. 

She said revenue support grants to district and urban councils constituted the largest portion of the ministry's projected recurrent budget at P5.190 billion or 55.5 per cent of the total budget.

The minister added that the provision of food supplies to primary schools and health facilities was included in the proposed budget and that procurement would be done at the local level to support farmers and the Reset Agenda priority of value-chain development

“The proposed budget allocation also includes an increase of P100 per month, per beneficiary for each of the social protection allowances that includes old age pension, destitute cash and World War II veteran allowances among other,” she said.

Ms Serame further said funds had been allocated for the maintenance of customary courts, replacement of vehicles and for the procurement of necessary equipment and furniture for the Tribal Administration, adding that Village Development Committee members world earn P130 per sitting. ENDS