Salaries of public servants most likely to be reduced

Salaries of public servants are most likely to be slashed by the government in the near future.

This is a consideration by the Niue government as part of austerity measures to curtail spending during this COVID-19 pandemic.

Currently, Niue’s public servants are being paid five days but are only working a 4-day week. The Government is now looking into reducing salaries to a four-day payment.

Any reduction in salary will have flow-on effects as government is the largest employer on the island, impacting the private sector and consumer confidence will most likely drop.

Another consideration by the government is to increase the Niue Consumption Tax and impose charges on services offered by the government that are currently free such as the child daycare center known as CRECHE.

The Finance Secretary Doreen Siataga revealed this while presenting on the impact of COVID – 19 on government’s revenue at a PACMAS COVID– 19 Communication workshop on Friday, July 17 hosted by the Broadcasting Corporation of Niue.

Siataga said these are some recommended considerations that the government has to make and for Cabinet to decide in order for the government to meet its operational costs.

The Finance Secretary stated the ratio is based on the $ 31M expenditure, deficit budget. Personnel and Welfare 60%; Operations 40%.

Based on revenue estimates $25M – Personnel and welfare 72% and 28% operations. A balanced budget will be $25 million revenue; $25 million expenditure.

The total national budget estimates for 2020 – 2021 is $32,504,000.

The estimated total recurrent expenditure of Niue’s 2020 – 2021 National
budget is $31,082,000. The estimated total recurrent revenue is $25,270,000.

Niue’s funded investment and development is $1, 322,000 while the total
funded capital is $100,000.

The budget deficit at $7,234,000.