Samoa declares ‘economic emergency’ over Budget crisis

Samoa's financial crisis was triggered by the failure to pass an Appropriation Bill to keep funds available. Photo / RNZ, Mark Papalii

By RNZ

Samoa’s head of state has declared a 30-day state of emergency because of a financial crisis triggered by the failure to pass an Appropriation Bill, as outlined under the country’s constitution.

Tuimaleali’ifano Va’aleto’a Eti Sualauvi II has issued a Proclamation of Emergency – dated September 26 – under Article 105 of Samoa’s Constitution.

The Emergency Budget, effective from September 30 to October 29, will allow the Government to access funds from the Treasury to ensure Government operations continue.

According to the Government’s Savali newspaper, the failure to pass Appropriation Bill earlier this year led to an early election and the Government entering caretaker mode, leading to the country operating on 25% of the Budget for the next financial year.

Samoa’s new Government was sworn in on September 16.

Acting Prime Minister Mulipola Anarosa Ale Molio’o said Parliament is set to meet in the second week of October to table its main Budget.

During the 30-day emergency period, the Ministry of Finance will work on producing the main Budget.

The state of emergency has the “sole purpose of issuing out of the Treasury fund such money as is necessary to meet the economic emergency”.

– RNZ