24 May 2004

Solomons Central Bank upbeat about economy despite budget blowout

3:55 pm on 24 May 2004

The governor of the Solomon Islands Central Bank, says he's optimistic about the government's finances despite a budget blowout of around 40-million US dollars last year.

Rick Hou says the deficit was due to factors beyond the control of the government.

He says it wasn't poor decision making but a inflated police force and the law and order problem which led to the blowout.

Mr Hou says last year was actually a dramatic improvement.

"The situation in terms of the fourth quarter last year compared to the the previous quarter was a drastic, well a very significant improvement. Since then there have been surpluses on a quarterly basis and the government finance are looking very good at the moment in terms of their cash balances and controls are very optimistic but the government's finances are under sound and firm control at the moment."

The Governor of the Solomons Central Bank, Rick Hou.