Government proposes $1.6m Social Benefits Scheme
Sunday, July 1, 2012 - 09:27
In a Press Release on Friday June 29, the Ministry of Finance and National Planning stated that during times of economic slowdown it remained the responsibility of government to protect the livelihood of its most vulnerable people. The Prime Minister told parliament that government is proposing a $1.6 million Social Benefits Scheme for the Elderly to be implemented on 1 September 2012, which is based on monthly stipend of about $65 pa'anga for 2,082 eligible people as reported in the 2006 Census.
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I think this is good and it
I think this is good and it is important to help those most in need. This fund could perhaps be boosted with the 2 million dollars that went to People's Reps earlier, probably a much fairer way of distributing funds. However, we need to be careful not to go overboard else we'll be taking money out of productive sectors into consumption, we already provide universal health and schooling to the population, which no doubt has reaped some benefits for many that might not have been able to afford these benefits. Why I say we need to be careful is that we should see these only as they are, automatic stabilizers or buffers that lessen the harsh effects of economic downturn, in the same way income tax, is also a buffer for some of the negative effects of a boom. So let's only use this without forgetting that it is money that comes from those that are contributing to growth, so if we take too much it will push us deeper into debt (because of a budget deficit), prolong the sluggish economy, and make us ever more dependent on foreign aid and remittances.