‘Cash flow problem is only temporary’ says McKinnie

The current government’s cash flow problem is only temporary, says Permanent Secretary for the Ministry of Finance and Treasury McKinnie Dentana.

Mr. Dentana made the clarification in a media conference yesterday.

He describes the situation as a ‘miss alliance’ due to the government’s quick action to implement the development budget.

“Because the government desired to quickly implement the development, there we can see there’s a miss alliance or mismatch which won’t last long.”

I am happy to inform the Press that from this week we will start to mobilize some of the domestic raised resources, ‘  he says.

Mr. Dentanna adds the cash flow problem is also due to a mismatch in the government’s spending and revenue collection over the past two months.

He said this happened as the government wants to implement its development budget.

The government has $2.7 billion in the Recurrent Budget, $938 million in the Development Expenditure, and $258.5 million in the Budget Support Expenditure.

by Sharon Nanau