Lakes State tabled its mid-year financial report in the State Parliament on Monday, a report that recognizes the impact of the world economic crisis to the local markets.
Presenting the report to MPs, Minister for Finance Purr Chiengan said that the State faces deeper economic challenges than what is directly experienced by the ordinary person in increased prices of consumer goods.Mr. Chiengan attributed the financial challenges to unrevised salary for public servants which caused a reduction in the power of purchase in the local market.
He also acknowledged that the policies to encourage investors and the private sector in Lakes State are not yet mature enough to face the current world economic crisis.
The Finance Minister revealed that during the period of six months considered in his report, Lakes State spent close to 45.5 million pounds on salaries alone, an amount representing 65.5 percent of the total budget.
He further disclosed that some 5 million pounds went into operation costs within the government institutions
The Minister further said that the most reliable and better performing source of local income has been the personal income tax levied on public servants, revealing that just over 1.5 million pounds was realized.
The Minister further assured parliament that his Ministry is determined to make better progress following the approval of the Draft estimate and Appropriation Act of 2011.