He explained that the current financial situation facing the country is bad and cannot be addressed in full by short term financing solutions, adding that it calls for an urgent fiscal adjustment programme. ''But the success of such a programme will depend on strong ownership, political commitment and candid communication by government,'' he said. He pointed out that the government is currently in negotiations with the International Monetary Fund (IMF) to provide a balance of payments support and to stimulate contributions from other partners, adding that the government is also in talks with the World Bank, European Union and the African Development Bank on additional support.

''A successful adjustment will entail very painful, but unavoidable measures to ensure that government spends only the money it has. This means that serious consideration should be given to achieving a budget balance (no deficit) for financial year 2019 budget,'' he said.
Dr. Majoro stated that the expenditure cutting measures that the government is considering to implement include reduction of spending on international travel by eliminating international training, ministers should be accompanied by one official or where there is an Embassy the Ambassador will attend on behalf of the minister. No per diem will be issued for any fully funded programmes by the host while attendance will be limited to only statutory meetings, he clarified.He mentioned also that reduction of government fleet costs will also be considered.He promised that the government will in the coming weeks announce additional revenue enhancement and expenditure cutting measures.

LenaHe said the prolonged accumulation of payment of arrears could have a devastating impact on businesses and bank sheets as suppliers fail to serve their loans, retain employees or maintain their businesses. Dr. Majoro said as an interim measure, the treasury has been authorised by cabinet to raise additional loan financing. “In anticipation of this additional financing we have begun to pay suppliers from Thursday last week and should pay off all arrears by the end of next week.” He explained that the current financial situation facing the country is bad and cannot be addressed in full by short term financing solutions, adding that it calls for an urgent fiscal adjustment programme. ''But the success of such a programme will depend on strong ownership, political commitment and candid communication by government,'' he said.

He pointed out that the government is currently in negotiations with the International Monetary Fund (IMF) to provide a balance of payments support and to stimulate contributions from other partners, adding that the government is also in talks with the World Bank, European Union and the African Development Bank on additional support. ''A successful adjustment will entail very painful, but unavoidable measures to ensure that government spends only the money it has. This means that serious consideration should be given to achieving a budget balance (no deficit) for financial year 2019 budget,'' he said.

Dr. Majoro stated that the expenditure cutting measures that the government is considering to implement include reduction of spending on international travel by eliminating international training, ministers should be accompanied by one official or where there is an Embassy the Ambassador will attend on behalf of the minister. No per diem will be issued for any fully funded programmes by the host while attendance will be limited to only statutory meetings, he clarified.

He mentioned also that reduction of government fleet costs will also be considered. He promised that the government will in the coming weeks announce additional revenue enhancement and expenditure cutting measures.
Lena