Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ADB Helps Marshall Islands Improve Public Service Delivery


ADB Helps Marshall Islands Improve Public Service Delivery And Fiscal Sustainability

MANILA, PHILIPPINES (27 November 2012) – The Asian Development Bank (ADB) has approved a $5 million loan to boost public service delivery and help the Government of the Republic of the Marshall Islands (RMI) achieve fiscal sustainability through improving government finances.

The second subprogram under the RMI Public Sector Program supports the implementation of the government’s reform initiatives and initiates adjustments required to achieve long-term fiscal sustainability. Through the $9.5 million subprogram, approved in August 2010, policy actions were designed and the implementation of immediate reform priority reforms began. Subprogram 2 will complete the implementation of the policy actions. The Ministry of Finance is the executing agency for the program, and will oversee all policy, legal, and regulatory actions to be undertaken in connection with the program.

“Fiscal and structural reforms are needed to achieve fiscal sustainability and generate medium-term economic growth in Marshall Islands,” said Hayden Everett, Financial Sector Specialist in ADB’s Pacific Department.

The RMI economy relies heavily on government expenditure and on foreign grants which fund more than two-thirds of government expenditure. Economic growth over the medium term in the RMI is expected to stay low at around 1.5% and revenues are projected to decline. Because of this low-growth scenario, the RMI needs to adjust to the annual decline of the grants it receives from the United States under the Compact of Free Association, which will expire in 2023.

Structural reforms implemented by the program include the introduction of new legislation covering state-owned enterprises, tax, and fiscal responsibility and debt management; the adoption and implementation of reform plans for selected state-owned enterprises to improve their performance; and the completion of a public sector workforce audit and planning exercise. The tax reforms will boost domestic revenue collection, while implementing state-owned enterprise reforms and reducing public expenditures will contribute to improving the fiscal balance.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2011, ADB approvals including co-financing totaled $21.7 billion.

*****

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news