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2015 National Budget

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2015 National Budget Government of Tuvalu 2015 National Budget Presented on 16 December 2014 By the Hon Maatia Toafa Minister for Finance and Economic Development Prepared by: Planning and Budget Department Ministry of Finance and Economic Development Table of Contents I. Foreword by Minister for Finance and Economic Development....................................................................................................... 3 II. Explanatory Notes ............................................................................................... 5 III. 2015 Budget Highlights ........................................................................................ 6 IV. 2015 Economic Outlook ....................................................................................... 9 V. Medium Term Fiscal Framework 2015 – 2017 .................................................... 14 MTFF Aggregates ........................................................................................................................... 14 Revenue ......................................................................................................................................................... 15 Expenditure ................................................................................................................................................... 17 Financial Assets .............................................................................................................................. 20 Public Debt ..................................................................................................................................... 21 VI. Progress on National Development Priorities .................................................... 23 Te Kakeega II .................................................................................................................................. 23 Roadmap ........................................................................................................................................ 24 Policy Reform Matrix (PRM) .......................................................................................................... 24 VII. 2015 Ministry Program Budget Estimates .......................................................... 26 Head A: Office of the Governor General ........................................................................................ 27 Head B: Office of the Prime Minister ............................................................................................ 29 Head C: Legal Services.................................................................................................................... 37 Head D: Parliament ....................................................................................................................... 42 Head E: Office of the Auditor General ........................................................................................... 45 Head F: Ministry of Finance and Economic Development ............................................................. 48 Head G: Ministry of Public Utilities and Infrastructure ................................................................. 60 Head H: Ministry of Health ............................................................................................................ 68 Head I: Ministry of Natural Resources .......................................................................................... 77 Head J: Ministry of Home Affairs and Rural Development ............................................................ 86 Head K: Tuvalu Police Service ........................................................................................................ 95 Head L: Ministry of Communication and Transport ................................................................... 100 Head M: Ministry of Education Youth and Sports ...................................................................... 108 Head N: Judiciary ......................................................................................................................... 120 1 | PAGE Head O: Ministry of Foreign Affairs, Environment, Trade, Tourism and Labour ..................................................................................................................... 124 VIII. Annexures ....................................................................................................... 135 Annexure 1: Medium Term Fiscal Framework 2015 – 2017 ........................................................ 136 Annexure 2: 2015 Tuvalu Development Fund Estimates ............................................................. 139 Annexure 3: 2015 External Budget Assistance ........................................................................... 150 Annexure 4: 2015 Special Development Expenditure ................................................................. 154 Annexure 5: 2015 Civil Service Establishment and Salary Scales............................................................................................................................................ 158 2 | PAGE Foreword by Minister for Finance and Economic Development I am honored to present to the citizens of Tuvalu the National Budget for the 2015 fiscal year. This is a decisive and a responsible budget that provides for the livelihood of our people. This Budget is about growing our future by making investment in the sustainable development of our Nation. The Government has targeted investment in policy priorities of the Te Kakeega II, Policy Reform Matrix and Government Roadmap, which reflects this Government’s commitment to improving the lives of the people, strengthening education, enhancing health services, outer islands development, providing appropriate infrastructure and improving basic and essential services to all Tuvaluans. The strong fiscal position for 2015 is driven by the continued strength of our major revenue sources such as fishing licenses, automatic distributions from the Tuvalu Trust Fund (TTF) and direct budget support received from our development partners - Republic of China (Taiwan), Australia and the World Bank. In addition, prudent fiscal management has seen significant savings built up in the Consolidated Investment Fund (CIF), which will provide a sound fiscal buffer for future years should the need arise. For 2015, total domestic revenue is estimated at $44.2 million. This includes an $8.7 million distribution from the TTF, $8.9 million from taxation, $17.0 million from fisheries licenses and $5.4 million from dotTV. In addition, development partner assistance for general budget support is estimated to be $11.5 million. Total expenditure for 2015 is projected at $56.2 million. Of this, $39.3 million will finance the recurrent budget (which also includes the $693,773 for CSOs) an increase of 14% over the 2014 Budget. In addition $13.8 million will be directed to Special Development Expenditures (SDEs) that will fund one off investment projects of priority for our Nation. Further, a contribution of $3 million will be made to the Tuvalu Trust Fund. The 2015 Budget will have a deficit of $346,961, which will be funded by a sustainable drawdown from the savings in the CIF. The 2015 Budget is for the citizens of Tuvalu. Their empathetic voices are strongly supported by the Government. Thus, the future is ours to make in empowering our people for inclusive and sustainable growth. The challenge is now on effective implementation of this Budget. In this regard, I would like all Government Ministries to ensure an effective and efficient implementation of the new policy supported in this Budget. 3 | PAGE I strongly urge all Public Enterprises and Island Kaupule leaders to provide strong, honest and prudent leadership to support the Government endeavors to develop our small nation of Tuvalu. Allow me to take this opportunity to convey my sincere thanks to everyone involved in the preparation of this important national policy document, especially my fellow Cabinet colleagues, Development Coordination Committee members, and line Ministries. In addition, I would like to express my special thanks to staff of the Planning and Budget Department who as usual, have worked tirelessly on the preparation of this document for months to ensure that the Budget is ready on time. The commitment, professionalism and efforts that you all put in to ensure we have a Budget that is fair for the people of Tuvalu deserves a big “Fakafetai Lasi”. TUVALU MO TE ATUA Hon. Maatia Toafa Minister of Finance and Economic Development 4 | PAGE Explanatory Notes As part of the Government’s commitment to improved public financial management, the format for the Budget Papers has been changed. The new format is intended to provide users with a greater understanding of the fiscal environment in which the Budget has been framed, explanation of the new funding that has been supported in the 2015 Budget and greater clarity on the extent of funding that is provided for the programs and activities Government delivers to the community. For 2015, Ministry budgets are being reflected at the program and activity level. The movement away from presenting the Budget on a line item basis reflects Government’s intention to adopt program budgeting. Full details of the programs and associated activities that are funded within those programs are provided in the Ministry Program Budget sections. Funding decisions for the 2015 Budget have been guided by the Medium Term Fiscal Framework (MTFF). The MTFF provides a forecast
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