SAMOA, May 26 - “Weaving a prosperous and secure future for Samoa together”

Hon. Sili Epa Tuioti MINISTER OF FINANCE 26 May 2020

TABLE OF CONTENTS

I. BUDGET SETTING 1 II. OUTLOOK 5 III. BUDGET STRATEGY 6 IV. BUDGET AGGREGATES 10 V. REVENUES 12 VI. EXPENDITURE PRIORITIES 12 VII. UNFORESEEEN EXPENDITURES 21 VIII. DEVELOPMENT EXPENDITURES 21 IX. THIRD SUPPLEMENTARY 2020/21 21 X. CONCLUSION 22

2020/21 BUDGET ADDRESS “Weaving a prosperous and secure future of Samoa together”

Mr. Speaker,

As required under Standing Order 131, it is my pleasure to present on behalf of the Government, the Statement on the Estimates for the fiscal year 2020/21.

I. BUDGET SETTING

Mr. Speaker,

As we stand together at the precipice to the final year of the XVI sitting of the Parliament of Samoa, we give thanks and praise to God Almighty for his guidance and his protection upon us all throughout the course of the past years.

Mr. Speaker, The budget presented today before Parliament has been prepared while Samoa and the world faces economic duress due to the rapid spread of the COVID19 Pandemic which has affected many countries across the globe and has claimed countless lives. Even though Samoa remains safe and free from this pandemic, we must remain vigilant and continue to enforce protection measures to ensure that the virus does not reach our shores. Implementing these measures will not be an easy feat but must be done nevertheless if we are to ensure the secured health of our nation and its people.

Mr. Speaker, I would like to take this opportunity on behalf of Government to thank all our partners who continue to offer assistance to Samoa through monetary grants, much needed medical equipment, consumables and medicines as well as the technical assistance extended. We also acknowledge our continued partnership and the assistance of the private sector as well as the continued prayers from all for a safe and secure Samoa. Faafetai tele lava.

A special word of thanks also to all the public servants who are at the frontline for the National Emergency Operations, tasked with ensuring that our borders remain unbreached by the COVID19. Either through their work at all our healthcare facilities or at our international borders where all returning residents, our imported food and medical supplies are being received and cleared we thank you for your dedication and commitment. We also acknowledge the operational and logistics teams who support the frontline workers. Thank you for your service to Samoa.

Mr. Speaker,

There is an overwhelming sense of pride in glancing back over the course of the past five years and seeing the many challenges that we have been able to overcome through quick and efficient facilitation of prudent fiscal policies that currently oversees Government’s finances.

Following high growths in previous years, the fiscal year 2016/17 registered a low growth rate of only 1% which was followed by a negative growth of 2.2% for the year 2017/18. Affecting these extremely low performances were the Yazaki Samoa closure in 2017; the decline in the fishing industry due to market issues in 2017 as well as the effects of Climate Change including Cyclone Gita which brought damage to the Apia township due to strong winds and flooding in 2018.

The fiscal year 2018/19 however registered a high growth rate of 3.5% for the Samoan economy. The country’s preparations for the hosting of the Pacific Games which occurred in July 2019 contributed greatly to this growth along with the many regional meetings that Samoa hosted during the period under review.

Earlier this year in February 2020 before the COVID19 Pandemic reached the Pacific, the International Monetary Fund (IMF) conducted its usual annual review on Samoa’s financial and economic performance. These comprehensive annual reviews were done based on international standards which are used to measure performances across all other member countries of the IMF under the Article IV. At the conclusion of this review, the IMF in their final report concluded that they were confident that Samoa should be able to achieve a 3% growth in the current fiscal year 2019/20. Their projections were based on their assessment of the well developed mix of macro economic policies implemented for the development of the economy. The review’s recommendation also supported the Government of Samoa’s continuation of many of its development works to ensure that the economy continues to grow in light of the uncertain global economic conditions. This assessment following a period when Samoa’s economy was struggling in the aftermaths of the many challenges it faced is an achievement in itself and is evidence that Samoa’s economy has the ability to quickly recover.

Mr. Speaker, It has been 3 months since our side of the globe has been affected by the COVID19 pandemic. It is without a doubt that at this point, we do not know how long it will take for a cure to be developed by those nations with the resources to do so. Millions of people have been left without work, many companies and industries worldwide that drove economic development have been forced to shut down further worsening global economic projections which at current is expected to contract by no less than 5% in the current fiscal year. For Samoa alone, it is anticipated that the economy will contract by -3.3% in the current 2019/20 fiscal year.

The Budget laid before Parliament has been compiled with the objective of ensuring the following: 1) That a Phase II of the Government’s Stimulus Package is prepared and released to those most affected; 2) Priority shall remain with and for the Health and Education Sectors; 3) Government will continue to implement its planned large developments not only to assist ongoing works but also to ensure economic activity; 4) Ensure sufficient fiscal space to sustain the priorities as outlined within the Main Estimates 2020/21; 5) Ensure prudence and continued compliance with existing mandates and policies that govern the use of public funds.

Mr. Speaker, Samoa has long been considered one of the most advanced economies within the Pacific in terms of developments and strategic direction. It is therefore relevant that I should take the opportunity to outline some of the key achievements and development made since 2016 under the leadership of the HRPP Government as follows: 1. Increased Recognized Seasonal Employer Scheme opportunities for our citizens in New Zealand as well as the Pacific Labour Scheme in Australia; 2. Improved information technology infrastructural development through the Submarine Cable Project along with the relocation of the 2AP broadcasting mast and equipment; 3. Hosting of regional and international events that included various sports events, conferences and meetings which contributed largely to the development of the hospitality and business community; 4. Refurbishment and reconstruction of the Faleolo International Airport to support international travel as well as the Apia Port development at Matautu to support international trade; 5. Improvements to education services that include refurbishment of district school buildings as well as the increase in Government’s assistance to schools including Early Childhood Education through the One Government Grant which will now be increased to $18million in the new fiscal year to commence in July; 6. Health services have also seen improvement in the past years with the construction of the new hospital and refurbishments to district clinics along with raised support for public health in communities as well as new equipment and medical consumable supplies to support service provision; 7. New road construction has also accelerated in the past years built to more resilient standards in order to withstand the effects of climate change. Construction of fords and bridges to raise road safety and transport has also progressed over the years including the new Vaisigano Bridge in Apia, the Maliolio Bridge in Samalaelulu as well as the bailey bridge at Lotosamasoni. Access roads have also been built and developed to support community developments; 8. The development of the West Coast Road or Samoa’s Economic Corridor to the Faleolo Airport has also progressed and continues in the new fiscal year; 9. The construction of the new prisons at Tanumalala to raise the security for the country as well as support the rehabilitation of prisoners; 10. Construction of the new Parliamentary Complex; 11. Increased coverage for both electricity and water services to the country; 12. Improved foreign investment through attracting large entreprises including new hotel developments into the country to drive tourism industry and agricultural development as well as to raise employment opportunities; 13. Improved Tourism investment developments through the Waterfront Development Project as well as the launching of the Samoa Airways to service the New Zealand and Australian markets. 14. Continuation of Agricultural Development projects through the SAFPROM Project and Agribusiness to support the sector as well as ensure food security and raised export opportunities.

II. OUTLOOK

Mr. Speaker,

The Main Estimates laid before the house today clearly highlights the effects of the pandemic on our economy and has taken into account the projections of the leading developed countries of the world which anticipate contractions for the current fiscal year as production and trade decrease due to the COVID19. In light of these effects and given the reliance of our country’s tourism and businesses on these countries’ developments it is expected that our country’s developments will also be affected.

The projections therefore for Samoa’s economy in the new fiscal year anticipates a negative growth of -2% due to the uncertain economic conditions faced not only by Samoa but also the countries of the world. At current, no one can predict how long it will take to find a cure or vaccine for the COVID19 which is the only condition that will satisfy the reopening of our international borders to service our tourism industry as well as support usual business trade which have borne the weight of the detrimental effects of the pandemic.

Mr. Speaker, in light of the effects highlighted, the Government has committed to the development and release of a Phase II to its first Stimulus Package. This second phase endeavours to cover as much of the country as possible particular the priority sectors considered most affected or most vulnerable. It is the Government’s intention that this second phase should contribute greatly to ensuring the continued turning of Samoa’s economy during these trialling times.

The Ministry of Finance will continue to collaborate with Government’s key development partners to ensure continued implementation of its pipeline projects under grants assistance for the next five years to secure employment opportunities for our youth as well as to raise direct injections into the economy.

III. BUDGET STRATEGY

Mr. Speaker,

It is the Government’s belief that Samoa’s economy can quickly recover from the effects of this pandemic if we work together to action the priorities and policies laid out for the future development of our nation. It is in this regard that the current budget has been built around the theme of “Weaving a Prosperous and Secure future for Samoa together”. The theme of the Budget clearly highlights the message that the future of Samoa is the responsibility of many and reflects the commitment of the Government for a better tomorrow for all of Samoa and its people.

Mr. Speaker,

The new fiscal year will kickstart with the release of the Phase II of the Government’s Assistance or Stimulus in response to the effects of COVID19 and the key features of this assistance are as follows:

1. NPF Dividend payout The National Provident fund will be implementing a dividend payout for all its contributors to the total value of $35million tala in July;

2. Additional One-Off Pension ($100 tala per pensioner in July) A one-off $100 top-up will be added to the July pension. In addition, the monthly pension will also be raised from $145 to $160 beginning July.

3. $50 per citizen during the 2020 Census and National ID Registration Roll Out The Government intends to merge the 2020 Census with the registration for the National ID project and each citizen to come in for registration will be given $50 tala;

4. Agriculture Stimulus This programme will be done in collaboration between the Ministry of Agriculture and its key stakeholders to revitalize the coconut, cocoa, taro and vegetable industry which will make use of those who have been made unemployed by the COVID19 to ensure food security within the country.

5. Unemployment Subsidy The Ministry of Finance will work in collaboration with the Samoa Chamber of Commerce to distribute monetary compensation for all workers who have been laid off, been put on leave without pay or have had their working hours reduced due to the COVID19.

6. 3month extension on free rent for all vendors at Samoa Land Corporation and Accident Compensation Corporation Markets Vendors who are operating in the markets owned by the Samoa Land Corporation and the Accident Compensation Corporation will have their free rent periods extended by another 3months to the end of August.

7. Short Term Paid Training for the Hospitality Sector The Government will work in close collaboration through the Samoa Tourism Authority with the Australian Pacific Training Coalition (APTC) to provide a 4 week training program on soft and minor skills for the service sector targeting workers in the hospitality sector who have been laid off due to the COVID19. To compensate for travel, food and other expenses each participant will be paid $100 per week of attendance.

8. Assistance to Talofa Airways; Government’s assistance to Talofa Airways will be in the way of debt forgiveness relating to 3months of operations at Fagalii Airport since December 2019.

9. Partial insurance compensation for Samoa Primary Exporters Government will compensate 5% of the value of primary agricultural exports and 1% of value of fishing exports lost between the month of February and May 2020. The compensation will be based on invoices provided by each exporter.

10. Licensing fees for all domestic fishing vessels waived for 2020 (beginning May 2020) All fishing vessels in Class A (≤ 11m), Class B (11–12.5m) and Class C (12.5-15m) will have licensing fees for 2020 starting from May 2020 waived. 11. 2% Interest Relief for all Business Loans with Commercial Banks for 3 months The Government of Samoa will carry 2% of all interest charged on loan repayments for all business loans with Commercial Banks.

Mr. Speaker, this assistance by the Government is put forth on the condition that all 4 Commercial Banks operating within the country would match Government’s assistance as their contribution to the country’s recovery.

12. Credit Facility at the DBS for Specific Sectors focused primarily on COVID19 recovery Capital Injection from the Government to DBS to extend to specific sectors who were impacted from COVID19.

13. Assistance to Vulnerable Groups Assistance for our social welfare NGOs who are currently caring for our most vulnerable citizens. This includes; a. Mapuifagalele – Home for the Elderly b. Samoa Victim Support Group c. Goshen Trust d. Faataua le Ola e. Nuanua o le Alofa f. Loto Taumafai g. Senese h. Divine Mercy Moamoa and others

It is the Government’s belief that there are also other organisations providing social welfare services to our citizens and therefore have set aside sufficient funds should these organisations come forward seeking assistance.

14. Interest Relief for Clients with loans under the South Pacific Business Development (SPBD); Government to provide interest relief to all the clients under SPBD.

15. Community Outreach; This assistance is targeted at raising the roles of committees within the villages to take charge of ensuring improved sanitation practices and healthy living as well as education at the grassroots. To kick start the revitalization of these committees the Government will distribute $3,600 per village committee as verified by the Ministry for Women into established bank accounts to assist with their initial activities.

16. Shelter Improvement Financing; To promote hygience and security, the Government will partner with ADRA who has an existing framework of this type to provide concessional financing to vulnerable families who are in need of secured shelter or shelter maintainance.

17. Samoa Housing Corporation Assistance to cover operating cost of the Corportaion throughout the duration of the assistance extended to the public in the Phase 1 Stimulus Package.

18. Electricity Rate Reduction extended until December This assistance from Phase I which is meant to last until August 2020 will now be extended until December and entails a 10sene reduction in electricity unit rates and a 50% reduction in the daily fixed rates extended to hotels.

19. Water Rate reduction extended until December and to include commercial clients This is also an assistance from Phase I meant to expire in August 2020 but will be extended until December and will now include commercial users.

20. Free Trade Concessions for Specific Food items under Phase I extended to August This is also a Phase I initiative meant to last until the end of June 2020 but has now been extended until the end of September.

21. Increase provision for the Ie Samoa Show (Faalelegapepe) The Government continues to acknowledge the role of the women and in particular mothers as providers of families and will therefore raise the annual provision for the Ie Samoa showcase to $1million so that more monies are distributed to women’s committees of each village to assist their families.

22. One Government Grant provision increased Government’s annual assistance to schools has also been increased up to $18million to assist schools in continuing to provide remote education services to the children of Samoa.

23. Monthly Pension increased by $15; As previously mentioned, the monthly pension for the country’s senior citizens will now be increased by $15 from $145 a month to $160.

24. Frontline Workers’ Risk Benefits All frontline workers’ of Government will have access to this benefit should they become infected with the COVID19 in the line of duty. This benefit will provide a year’s worth of salaries to the family of the frontline worker should they be affected;

25. Construction and upgrade of Rural Hospitals including Physican Quarters. In line with the Government’s assistance to revive the relocation of medical personnel to district hospitals, the Government will endeavor to refurbish clinics and staff quarters.

IV. BUDGET AGGREGATES

Mr. Speaker,

I would now like to highlight the key components of the 2020/21 budget as follows:

The 2020/21 financial year Main Estimates is expected to record an overall fiscal deficit of approximately $116.2million tala. When reclassified under the Government Finance Statistics format (GFS) , this is reduced to $82.4million tala or 2.3% of GDP.

Mr. Speaker, the fiscal expansion presented herewith should not be cause for concern. In that regard, I refer to Government finances appropriated for key development programmes and in particular those that are crucial to the country’s economic development. There have been concerns circulating within the country around the possibility that the Government is bankrupt and no longer able to pay its debts.

Mr. Speaker, at current the Government’s financial position remains sound and the appropriation of its revenues remain sufficient to sustain its operations. A total of $89million is included under the total Statutory Payments of $137million allocated specifically for the Government’s debt servicing taken from total Government Revenues of $838.2million. This means that after paying our debt servicing, a total of $749.2million is left to be appropriated towards remunerations for public servants, payment of operations as well as other development programmes of the Government. In terms of percentage, only 11% of Government revenues go towards our debt servicing while 89% remains for other operations of Government and its key developments. Despite current circumstances the Government remains confident that we can work together to ensure strong economic growth for a better future for all.

V. REVENUES

Mr. Speaker,

Overall Total Revenues of Government is expected to drop 5% in the new fiscal year 2020/21 attributed primarily to the expectation for a decline in taxation as a result of trade interruptions due to the COVID19.

Total Ordinary Receipts are expected to decline 10% attributed to the aforementioned decline in Taxation Revenues which will fall by 12% while Non Tax Revenues will increase by 12% to reflect the inclusion of fees and charges of the Land Transport Authority now transferred to the Ministry of Police.

Total Grants are expected to increase 9% to reflect the increased assistance from our development partners in response to the effects of the COVID19.

VI. EXPENDITURE PRIORITIES

Mr. Speaker and Distinguished Members of Parliament,

Total expenditures of Government for the fiscal year 2020/21 is estimated at $965.8million including development project payments and will be 1.5% lower than the provisions for the current fiscal year 2019/20.

The decline anticipated for total expenditures in the new fiscal year is attributed largely to the reduction in development programmes provisions reflecting the completion of many of the Government’s developments within the current fiscal year 2019/20. In addition, many of the pipeline projects planned with our development partners have been restructured and reprioritized so that priority is given to COVID19 response and assistance.

Current Payments are anticipated to increase by 5% or $42.7million attributed largely to the Phase II of the Government’s Response Plan for the COVID19.

Mr. Speaker,

I will now summarize the individual appropriations allocated to Ministries for the new financial year 2020/21:

1. Ministry of Agriculture and Fisheries – $15.5 million tala; • $11.9 million tala for the Ministry’s normal operations; • $3.49 million for Transactions on Behalf of the State;

Major initiatives planned by the Ministry for the new fiscal year includes: • $500,000 for the annual Agriculture Show; • $500,000 for the Rhinocerous Beetle elimination program; • $300,000 for the Women in Business Development Inc (WIBDI); • $200,000 for the WCPFC Scientific Committee Meeting; • $150,000 for the ICC Ministerial Meeting.

The Ministry is also working in close collaboration with our development partners on various projects of which the largest is: • $12.2 million tala for the Samoa Agriculture and Fisheries Productivity and Marketing Project (SAFPROM) under the auspices of the World Bank and the IFAD;

2. Ministry of Commerce, Industry and Labour – $7.5million tala; • $5.2million for the Ministry’s normal operations; • $2.3million for Transactions on Behalf of the State.

Large intiatives planned by the Ministry include: • $200,000 usual Government assistance to the private sector; • $178,000 to continue the Government’s annual Apprenticeship Scheme intake;

3. Ministry of Communications and Information Technology – $5.7 million tala; • $2.6million for the Ministry’s operations; • $3.1million for Transactions on Behalf of State.

Significant expenditure programs of the Ministry for the new fiscal year includes: • $1.7 million for the co-location lease as well as associated utility costs for the SNBH infrastructures;

The Ministry is also working in close collaboration with our development partners in the implementation of key projects for the sector of the which the largest is: • $6.4 million for the Samoa Connectivity Project under the auspices of the World Bank and the Government of Australia;

4. Ministry of Education, Sports and Culture – $103.4million tala • $72.6 million tala for the Ministry’s planned operations; • $30.7 million for Transactions on Behalf of State.

The planned initiatives of the Ministry include the following major developments; • $18 million for the One Government Grant to schools; • $6.5 million for the Education Sector Support Program under the auspices of the New Zealand and Australian Government; • $1.5 million for Teachers’ Scholarship program; • $350,000 for the Samoa Rugby Union; • $200,000 for Sports Development; • $150,000 for the Samoa Netball Association;

The Ministry is also working in collaboration with its major development partners in the implementation of key projects of which the largest are: • $2 million for Inclusive Education; • $1.2 miliona for the Nursing Workforce Development Program;

5. Ministry of Finance – $133.3 million tala; • $16.5 million for the Ministry’s planned operations; • $116.8 million for Transactions on Behalf of State;

Some of the larger initiatives being led by the Ministry of Finance include: • $32 million for the Phase II of the Government’s COVID19 Response Plan; • $27.1 million for the usual annual Senior Citizens’ Pension; • $13.5 million allocated to cover VAGST and duties for development project related expenditures including imports; • $5 million to cover land compensation associated with the planned Cross Island Road development; • $5 million to be paid to the Samoa Airways as compensation for Government’s takeover of the Fagalii Airport properties; • $4.7 million for Government assets insurance; • $1.5 million Government counterpart for the West Coast Road development; • $1 million tala for the rehabilitation of the Government’s Vaimea Warehouse; • $1 million tala for the relocation of the Government bowser to Tuanaimato;

$126.3million has been committed by our development partners in terms of direct budget support not only to help fill the fiscal gap due to the effects of the COVID19 but also to finance the Government’s assistance to the country.

6. Ministry of Foreign Affairs and Trade – $26.7million tala; • $19.1 million tala for the Ministry’s operations; • $7.6 million tala for Transactions on Behalf of the State.

Large planned initiatives of the Ministry include: • $473,440 for the relocation of the embassy in Japan into Tokyo; • $200,000 for the Summit on the Signing of the EU-ACP Samoa Agreement (Post Cotonou); • $150,000 Pacific Labour Mobility Annual Meeting; • $100,000 Meeting of the Pacific ACP-EU IEPA Trade Committee; • $100,000 Preparations for the CHOGM 2022;

7. Ministry of Health – $120.6 million tala; • $76.3 million to support the usual operations of the Ministry; • $44.3 million for Transactions on Behalf of the State.

Some of the larger provisions for the Ministry include: • $8 million allocated for the Government’s Overseas Medical Treatment Scheme; • $5.7 million tala for the NCD’s Program for Results under the auspices of the World Bank; • $3 million tala for the reconstruction and refurbishment of district clinics and staff quarters.

Larger development projects implemented by the Ministry in collaboration with development partners include: • $2.5 million under the World Bank particular to COVID19 response; • $1.8 million for a Digital Radiography System General X-Ray Machine through the Government of Australia; • $1.5 million for the Samoa Nursing Community Training Centre under the auspices of the Government of New Zealand.

8. Ministry for Justice and Courts Administration – $13.8 million tala; • $12 million allocated to support normal operations of the Ministry; • $1.8 million for Transactions on Behalf of the State;

Larger initiatives planned by the Ministry include: • $500,000 for preparatory works required for the new Ministry headquarters in Salelologa; • $200,000 for the re-roofing of the Ministry’s building at Mulinu’u.

9. Ministry of Natural Resources and Environment – $26.8 million tala; • $13.2 million for the Ministry’s planned operations; • $13.6 million for Transactions on Behalf of the State;

Larger initiatives of the Ministry as part of its annual operations include: • $4 million for compensation of land to be taken for Government developments and reserves; • $3.9 million for waste management contract services; • $500,000 for water resource land compensation; • $500,000 for Roads for Land Board leased Lands.

The Ministry is also leading the implementation of key development projects of which the larger ones are: • $11.2 million for the Enhancing Climate Resilience of Coastal Resources and Communities programme; • $3.5 million for the Economy wide integration of Climate Change Adaptation and Disaster Risk Management programme; • $2million tala for the Pacific Resilience Programme;

10. Ministry of Police – $26.4 million tala; • $24.4 million to support the normal operations of the Ministry; • $2 million for Transactions on Behalf of the State.

11. Ministry of the Prime Minister and Cabinet – $8.4million tala; • $6 million for the Ministry’s planned operations for the year; • $2.4 million for Transactions of Behalf of the State.

12. Ministry for Customs and Revenues – $13.2 million tala; • $10.6 million to support the Ministry’s normal operations; • $2.6 million for Transactions on Behalf of the State.

The largest expenditure initiative of the Ministry planned for the new fiscal year is: • $676,750 as final payment for the Taxation Information Management System;

13. Ministry for Women, Community and Socail Development – $10.8 million tala; • $9 million for the planned operations of the Ministry; • $1.8 million for Transactions on Behalf of the State;

The largest provision for the Ministry is the $1million for the Ie Samoa Annual Showcase.

14. Ministry for Works, Transport and Infrastructure – $25.2million tala; • $4.9 million for the Ministry’s operations; • $4 million for the EPC’s Community Service Obligations; • $4 million for the SWA’s Community Service Obligations; • $11.2 million for planned investment projects of the SWA; • $1.1 million for Transactions on Behalf of the State;

Other than their usual planned infrastructural works, the Ministry will also lead the implementation of some of Government’s larger development projects in the new fiscal year 2020/21 which include: • $13.6 million for the Samoa Climate Resilient Transport Project under the auspices of the World Bank; • $1 million for remaining works associated with the Apia Waterfront Development through the assistance of the New Zealand Government;

15. Office of the Attorney General – $5.3 million tala; • $4.6 million for the operations of the Ministry; • $725,702 for Transactions on Behalf of the State;

16. Office of the Auditor General – $3.9 million tala; • $3.4 million for the Office’s normal operations; • $568,037 for Transactions on Behalf of the State;

17. Office of the Electoral Commissioner – $8.3 million tala; • $2.2 million for the normal operations of the Ministry; • $6.1 million for Transactions on Behalf of the State;

Large planned initiatives of the Ministry include: • $2.6 million allocated for the construction of the new office building for the Ministry planned for Mulinuu; • $2.2 million allocated for the administration of the general elections in April 2021. These provisions include monies allocated for additional personnel required for the elections as well as allocations for hire of facilities in the communities as well as payment for catering provided by villages to support polling booths and officials.

18. Office of the Legislative Assembly – $6.9 million tala; • $5.7 million for the normal operations of the Ministry; • $1.2 million for Transactions of Behalf of the State.

19. Office of the Ombudsman – $1.6 million tala; • $1.4 million for the planned operations of the Office; • $195,399 for Transactions on Behalf of the State.

20. Public Service Commission – $5.1 million tala; • $4.3 million to support the operations of the Ministry; • $891,248 Transactions on Behalf of the State.

In line with the functional restructuring as directed by Cabinet, included under the provisions for the PSC is $27.6million in total assistance from the Governments of Japan, Australia and New Zealand for scholarships.

21. Fire and Emergency Services Authority – $8.8 million tala; • $8.5 million to support the normal operations of the Authority; • $375,195 for Transactions on Behalf of the State;

22. Samoa National Kidney Foundation – $8.3million tala; • $4.99 million tala to support the normal operations of the Foundation; • $3.3 million for Transactions on Behalf of the State;

23. Public Trust Office – $2.9 million tala; • $1.2 million to support the Office’s normal operations; • $1.7 million for Transactions on Behalf of the State;

24. Samoa Qualifications Authority – $4.4 million tala; • $2.9 million to support the planned operations of the Authority; • $1.5 million for Transactions on Behalf of the State;

25. Samoa Tourism Authority – $12.7 million tala; • $10.5 million for the planned operations of the Authority; • $2.2 million for Transactions on Behalf of the State.

The STA will also lead the implementation of key development programmes of which the largest is the $1.7million allocated under the assistance of the Government of New Zeland for the Tourism Growth Development Project.

26. Office of the Regulator – $2.01 million tala; • $1.9 million to suppor the operations of the office; • $94,167 for Transactions on Behalf of the State.

27. Scientific Research Organisation of Samoa – $4.3 million tala; • $4.2 million for the normal operations of the organisation; • $224,571 for Transactions on Behalf of the State.

28. National University of Samoa – $24.7 million tala; • $22.1 million to support the services of the University; • $2.6 million for Transactions on Behalf of the State.

29. Samoa Sports Facility Authority – $2.2 million tala; • $2.1 million to suppor the operations of the authority; • $98,42 for Transactions on Behalf of the State;

30. Ministry for Public Entreprises – $2.9 million tala; • $2.3 million for the Ministry’s operations; • $581,833 for Transactions on Behalf of the State;

31. Samoa Bureau of Statistics – $5.7 million tala; • $3.8 million to support the planned operations of the Ministry; • $1.8 million for Transactions on Behalf of the State;

Large planned expenditures for the Bureau include: • $441,835 for preparations for the Population Census; • $527,625 to continue the suspended Agriculture Census; • $115,000 to complete the Demographic Health Study

32. Land Transport Authority – $45.8 million tala; • $40.5 million to support all the planned activities and operations of the Authority; • $5.3 million for Transactions on Behalf of the State.

The Land Transport Authority – Samoa is also leading the implementation of many development projects the largest of which include: • $7.2 million for the West Coast Road Project; • $14.5 million in total for the Samoa Enhanced Roads project under the auspices of the World Bank and the Government of Australia;

33. Law Reform Commission – $1.4 million tala; • $1.2 million to support the planned operations of the office; • $255,519 for Transactions on Behalf of the State;

34. Ministry for Prisons – $8.1 million tala; • $6.6 to support the operations of the Ministry; • $1.5 million for Transactions on Behalf of the State.

VII. UNFORESEEEN EXPENDITURES Total estimated appropriation for the Unforeseen vote for the fiscal year 2020/21 stands at $20.6million based on the overall total for Ministry Expenditure Programs.

VIII. DEVELOPMENT EXPENDITURES

Mr. Speaker, much of the Government’s planned development programs for the new fiscal year 2020/21 will be supported through grants and loans assistance from all our development partners. These developments will continue regardless of the uncertainties and effects in lieu of the spread of the COVID19 virus which is a significant commitment from our partners in ensuring continued economic growth for our country.

Mr. Speaker, the Government continues to collaborate with all our development partners regarding planned programmes for the next 3 – 5 years.

IX. THIRD SUPPLEMENTARY 2020/21

Mr. Speaker, submitted also herewith is the Third Supplementary Budget for the current fiscal year 2020/21. The Third Supplementary laid before Parliament is expected to expand the current deficit by $3.5million but will not have a significant impact on the projected fiscal deficit of 1.6% of GDP.

X. CONCLUSION

Mr. Speaker, I have consistently reiterated the detrimental effects of the COVID19 on the economy of Samoa which is the same across other nations of the world at current. Tourism development itself, one of the biggest contributor’s to the country’s economy has been affected the most and despite aspirations to try and respond to the cry from the industry for large compensations, the Government’s response is limited to its available resources.

Our prayers remain that God will continue to bless the fruits of our lands to ensure sustainable supply of provisions for our nation and may His everlasting protection remain constant over Samoa. Let us continue to pray with all our Spiritual leaders that Samoa remains free and our children remain safe from the COVID19 and may all that we aspire to do be founded on God the Father, God the Son and God the Holy Spirit.

On behalf of the Government I wish you all a happy and safe 58th Independence Day Celebrations.

Mr. Speaker, I now commend the 2020/21 Budget to the House.

Soifua ma ia Manuia.

May 26, 2020