18 Aug 2005

Marshall Islands Government puts the clamps on spending

8:57 pm on 18 August 2005

The Marshall Islands government has put a stop on all non-payroll spending.

The order comes seven weeks before the end of the financial year.

President Kessai Note declared earlier this month that the Marshall Islands would end its fiscal year on September 30th with a surplus of half a million dollars.

But the Ministry of Finance has now put a freeze on all General Fund spending last saying revenue is falling short of spending.

The General Fund is the government's main financial account.

Finance Secretary Jefferson Barton says reports indicate they will not realise all of the revenue projected at the beginning of the year.

Mr Barton and Finance Minister Brenson Wase last Friday announced that, effective the same day, except for payroll and emergencies, no further expenditures will be made until the new fiscal year.