Photo: RNZ
The Niue Government is set for a deficit of $NZ8.7 million for the 2023-24 financial year.
Television Niue reports that the government estimates spending $53.9 million and generating $45.1 million in the new financial year.
In his budget speech, Minister of Finance Crossley Tatui said this budget shows the economic vulnerability confronting the government.
"There should be no surprise with the current risky position we are facing due to the historic policies and decisions being implemented, aid dependence, our remoteness, high cost structure, small population base, the covid-19 pandemic impacts, and the external economic shocks caused by geopolitical conflicts," he said.
Tatui explained that the reforms of the public finance legal framework, which was recommended by a peer review of 2011 and finally initiated in the last Assembly, will soon be tabled in Cabinet before presenting the bill to the Fono Ekepule later this year.
Niue Finance Minister, Crossley Tatui Photo: Niue Govt
"The bill provides for fiscal responsibility, the annual budget-estimates and appropriation, the control and management of public finances, including the use of government account, borrowing, lending and investment, accounting, reporting for the government entities, sanctions and other matters," said Tatui.
"The budget deficit reminds us that some of our policies are not sustainable.
"The deficit position summons us to rethink and revisit the way we do things. How hard it is to to set and keep policies, spend more than the cash available to us."
The broadcaster reports that most members of the Fono responded positively to the budget, recognising the challenges facing the government with a large deficit but also appreciating the commitment of the government not to impose austerity measures.
Tutuli Heka said that despite the large deficit, he is grateful to the Minister and Cabinet for not imposing austerity measures to reduce government spending on salaries and welfare payments.
Sinahemana Hekau supported the budget but she also spoke about the need to review and update the laws that guide the financial management of public funds, an exercise that was started in the 17th Assembly.
Hekau also pushed for a boost in the population and supported the move by the government to bring in more workers from overseas.