Photo: Sol2023 XVII Pacific Games
The International Monetary Fund has urged the Solomon Islands to ensure spending on this year's Pacific Games and the delayed general election is well controlled.
Inside the Games reports Masafumi Yabara led the IMF team to the Solomon Islands, and he said the Pacific Games is likely to contribute to an increased fiscal deficit for 2023.
Yabara said expenditure related to the Games and the election needs to be controlled to minimise the crowding out of other essential spending.
The IMF staff has recommended that an audit of expenditures related to the Pacific Games be published after it has concluded.
Yabara said projects related to the Pacific Games had helped with an economic recovery, although challenges including the war in Ukraine and high inflation remained.
"The economy is recovering from a series of shocks, including civil unrest and a local outbreak of covid-19," Yabara said.
"The reopening of the border and infrastructure spending ahead of the 2023 Pacific Games have boosted growth but the recovery has been fragile, as Russia's war in Ukraine has led to higher inflation and a worsening of the terms of trade."
A growth rate of 2.5 percent is estimated by Yabara for 2023, with inflation projected to be 4.7 percent at the end of the current year, in comparison to 8.5 percent at the end of 2022.
Yabara added that the Pacific Games is likely to contribute to an increased fiscal deficit for 2023, meaning that careful control of spending is required.
"The fiscal deficit is projected to widen to 6.3 percent of GDP in 2023, mainly driven by exceptional expenditures for the hosting of the Pacific Games and preparation for the general elections (summing up to 5.3 percent of GDP)," he said.
"Expenditures related to these two events need to be well controlled to minimise the crowding out of other essential spending, including targeted support for the vulnerable and investment for future growth.
"Once the recovery is secured, rebuilding the government's broad cash balance to at least two months of total spending should be prioritised."
The IMF staff has recommended that an audit of expenditures related to the Pacific Games are published after it has concluded.
The Solomon Islands is due to stage this year's Pacific Games between November 19 and December 2, following a four-month delay.
Prime Minister Manasseh Sogavare said hosting the multi-sport event means the country cannot hold a general election in 2023 and has had his term extended beyond the constitutional limit of four years in a move critics say is a power grab and undemocratic.
New channel for Games
The national broadcaster for Solomon Islands SIBC will be launching a television station ahead of the Pacific Games.
This was revealed by its chief executive Johnson Honimae after signing a broadcasting agreement with Solomon Telekom Company that would see games coverage aired nationally and internationally on TTV's transmitters and online platforms.
The MoU is conditional on the national broadcaster securing intellectual property rights for the tournament from the Pacific games organising committee.
Honimae said he is thrilled with the signing as it shows a real commitment to ensuring the Pacific Games and the future SIBC TV channel is shown nationwide.
SIBC have tabled a joint bid with its New Zealand partner MMG Communications to be the host broadcaster of the 2023 Pacific Games and the national rights holder in the Solomon Islands.
Honimae said it has been decided that the SIBC television service will be launched in time for the Games opening ceremony on November 19.
The undertaking will require 100 staff and 60 cameras to simulcast the majority of events at the nine games venues.
Action in the va'a canoe competition Photo: Pacific Mini Games