Director of Finance Restricts Operational Budgets

A circular forwarded by the Acting Director of finance, Benjamin Malas, has reached all top line directors and managers inside the Vanuatu Government to alert them of certain restrictions being placed on Ministries to be effective from the second week of November onward.

The circular also highlighted the fact that most of the Ministries and constitutional agency’s no longer have a budget for the remaining year and that operational warrants are now restricted.

Outstanding cost such as water, electricity and rent will be accumulating for the remaining months of the year so the MOF is imposing restricting  on operational warrants for the remaining financial year 2015 to ensure there are no impacts to the 2016 budget.

The restriction also applies to New Policy Proposals (NPP) as approved in the 2015 budget. Supplementary budgets will also be restricted unless of course there is a receipt of invoice provided.

The restrictions have shown that the government has over the last five months gone beyond its spending privileges. With the restrictions in place there will be no more operational warrants released without a attached invoice.

The Circular by the Acting Director though has also placed the governments spending on hold to ensure there is no unnecessary spending.

The circular has come out after five months meaning the government did go on a spending spree but now there are control measures being put to place.