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"Budget" from the Cambridge dictionary, it is a financial plan that lists expected expenses and income during a particular period. "Policy" from the Cambridge dictionary, it is a set of ideas or plan of what to do in particular situations that has been agreed to officially by a group of people, a business organization, a government, or a political party. "Sustainable" from the Cambridge dictionary, is when it is able to continue over a period of time, causing little or no damage to the environment and therefore able to continue for a long time. "Growth" from the Cambridge dictionary, it is the process of developing or of increasing in size, here we are talking about Vanuatu’s economic growth.
Here it is interesting to ask ourselves: how to implement a budget policy that will be supporting Vanuatu's sustainable growth?
Firstly, the budget policy must be comply with the laws and plans of Vanuatu in order to contribute to Vanuatu's sustainable development.
Secondly, the budget must reflect the real economic situation of the country and the real needs of the country.

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4) National Mechanisms (p.26-28)

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Recently, Government has issued some documents on its medium term strategy, somehow green growth or sustainable development is not assured by these documents since they are only here for the Government and the other activities sectors to do necessarily the things that will reduce natural disasters but there is no roadmap for achieving broad-based sustainable development in Vanuatu. A green growth roadmap could be established by a National Council on Sustainable Development with an objective of acting as a sustainable development social planner or acting on its international sustainability commitments. Moreover, a separated Ministry for the Environment and Conservation may resolve this conflict of interest in mainstreaming sustainable development approaches within the government and in assisting and coordinating green growth policy making across sector agencies. Besides, previous analysis made by the Asian Development Bank in 2007 showed that environmental protection and management fund was insufficient and represented less than one per cent of the total budget. Though, Vanuatu has a limited economy capacity to instrument green growth.

Yet, this restricted capacity could be astounded by increasing the revenue of departments focusing on environmental policymaking such as implementing environmental regulation and enforcing measures. The Environment Unit could use a market-based mechanism to reduce levels of land degradation and raise finance. Perhaps, due to lots of international assistance for climate change, Vanuatu’s Government has now a body for climate change, the NACC. As the chairman of NACC noticed, combining the inputs from all relevant departments to coordinate activities with government and donors are still the challenges. He added that there is a need of strengthening the infrastructure projects to integrate renewable energy and developing a policy base or a legislation to mainstream climate change adaptation. However, engaging and mobilizing civil society, the private sector and the community is also required for mainstreaming green growth. VANGO is a potential coalition for pressuring the government to improve environmental management but yet, the private sector is not an active player in green growth in Vanuatu and the Government should build a more close relationship with it such as making it pay for the ecosystem services used and the pollution resulting from their consumption and production. Notwithstanding, a strong government relationship with communities is also important for mainstreaming green growth because the subsistence agriculture and fisheries sector is the main employer in Vanuatu and this sector could be the best way to broad based poverty reduction. Last but not least, the CBNRM needs to be strengthen and given more formal power to regulate the natural assets. In brief, to mainstream green economy, Vanuatu needs to build capacities and effective ministries and departments into a whole of government approach.

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This text is an assessment made by the Pacific Institute of Public Policy with the aim of identifying opportunities and constraints to achieve green growth in Vanuatu. This report provides a detailed and through overview of green growth in the Vanuatu context.

I have chosen the section of this report which outlines the local mechanisms required to mainstream green growth opportunities into national policy and implementation processes.

Firstly, it said that the Vanuatu Government has been making documents on its priorities and its plan for the future, and future economy but none of a document has been made in order to coordinate and plan approach between all relevant sectors and government departments to achieve environmental protection and mainstreaming green growth.

I partially agree with this point. A Ministry for Environment and Conservation should be established in order to focus more on environmental issues since the United Nations recognized Vanuatu as the country the most defenseless to the impact of climate change and since environmental issues are and will always be the cross cutting for Vanuatu’s sustainable growth, but this will cost the government.

Secondly, it said that this incapacity of setting up a new Ministry is a financial matter that could be overcome by implementing environmental regulation and enforcing measures.

I totally agree with this point, since Vanuatu Government could set up taxes such as the tax on “polluter-pay principle” to increase the revenue of the Ministries.

Thirdly, it said that engaging and mobilizing civil society, the private sector and the community is required to mainstream green growth.

I totally agree with this point, it is a teamwork and it is for the good of Vanuatu’s nation since they will be facing natural disasters such as the latest Tropical Cyclone Pam that was category 5. So Vanuatu people should start working together in the same path with the Government.

To conclude, Government of Vanuatu should and must always have a strong relationship with the civil society/communities in order to improve environmental management and sustainable development. Government should also encourage the private sector to become an active player in green growth.

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The Government's proposed budget of VT57,148,528,185 for the year 2020 received overwhelming support from the Opposition bloc when tabled in Parliament yesterday by the Minister of Finance, Gaetan Pikioune.

In his presentation speech on the 2020 budget, Minister Pikioune, explained the grounds for the increase in the 2020 budget. He said 2020 will see major events taking place such as the general elections, the 40th Independence Anniversary celebrations, the hosting of the Pacific Islands Forum meeting, and Vanuatu's graduation from the Least Developed Countries (LDC) status by December 2020.

"Today I present to you a budget that will focus on building and improving the life of the people of Vanuatu through all business opportunities, improving service delivery, improving infrastructure, improving education, good healthcare, and resilience against natural disasters," Minister Pikioune said.

"This budget is for everyone in Vanuatu, from the farmers, to the teachers, to health workers, construction workers, and communities from Torres to Aneityum."

Commenting on the budget, Leader of Opposition, MP Ishmael Kalsakau, congratulated the Finance Minister for 'openness and frankness' in the presentation of the 2020 budget. He said the budget reflected growth in revenue over the last four years as explained by Finance Minister.

Tanna MP Bob Loughman said it is a comprehensive budget and joined the Opposition Leader to commend the Minister of Finance.

The 2020 proposed budget of Vt57,148,528,185 will be issued from the public funds of the Government of the Republic of Vanuatu for the year ending 31st December.

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The Government's proposed budget of VT57,148,528,185 for the year 2020 received overwhelming support from the Opposition bloc when tabled in Parliament yesterday by the Minister of Finance, Gaetan Pikioune. In his presentation speech on the 2020 budget, Minister Pikioune, explained the grounds for the increase in the 2020 budget.

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This text is a press report from the Vanuatu Daily Post, entitled “VT57 Billion Proposed Budget for 2020” by the journalist Godwin Ligo published on December 17, 2019. This press report deals with the Government‘s proposed budget of VT57,148,528,185 for the year 2020 approved by the legislative assembly.

In his introduction discour, the Minister of Finance justified the reasons why the 2020 budget will increment. Important events will occur and most importantly, the fact that Vanuatu will emerge from the Least Developed Countries by the end of this year.

By implementing the priorities such as enterprise opportunities and many more, the proposed budget will raise up and enhance the nation’s living, continued Mr Pikioune.

He then clarifies that this budget is for Vanuatu’s population, from the farmhand to the employees and from the Northern part to the Southern part of the country.

Minister Pikioune was then saluted by the Leader of Opposition and the Tanna PM for his fair-mindedness of 2020 budget’ speech since this budget is coherent and displays the past years increase of earnings.

The 2020 budget will then be made available at the end of the year by the Government’s public funds.

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From "Such plans are [...]" to "[...]  first considering the cost."

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If you look at the broad strokes, Vanuatu's 2014 budget books reveal a fairly healthy economy - see our interactive 2014 budget at a glance charts.

But they are far less revealing than they should be about the road ahead for the tiny island nation. Overall, the economic news is okay. Revenues have improved significantly, largely because customs and inland revenue has tightened up its processes. Businesses are now closer to paying what they actually owe. The world economy is improving, and so is Vanuatu's. Growth is expected to increase, from 3.3% in 2013 to 5.1% in 2014, and even higher in 2015. Inflation will remain low, likely less than 3% in the coming year. The government is taking on USD 5 million in new debt in order to contribute to a number of largely donor-funded infrastructure projects.

But dig a little deeper, and things appear even less so rosy. The budget does little to reflect the government's goal of 'a Just, an Educated, Healthy and Wealthy Vanuatu'.
See our budget spending wheel and budget tree, which together which provides a detailed, drill-down view of annual spending.

Overspending on scholarships in 2013 has not only left the department of education constrained at the very moment when it should be investing heavily in teachers, schools and educational resources, it's diverted money from other areas as well.
See our case study on government scholarships in Vanuatu.
In health, things don't look so good either. Whatever we may think about the department's recent decision to focus on medicine to the exclusion of other activities, it's clear that much could be done to improve the ministry's policy-making and implementation processes. A recent outbreak of dengue in Port Vila has caught it flat-footed. The cost in terms of medical care and, potentially, in lives, will only add to the nation's burden.

Vanuatu managed to get through the recent global economic downturn with less damage than some of its neighbours. Some part of this is due to the government's efforts in recent years to liberalise certain sectors, to improve conditions for businesses large and small, and to improve its own administrative processes as well. The result is that the country is a better place to do business than it was.

But we're facing a welter of challenges still. The 2010 census contains stark evidence that the country is becoming increasingly urbanised. When peri-urban neighbourhoods like those surrounding the Port Vila and Luganville municipalities are factored in, we see that the old 80/20% rural/urban split no longer holds. Over the last few years, falling commodity prices and lack of opportunity have drawn more and more young adults into our towns. Back in 2010, the division was closer to 70/30, and based on observation alone, it's clear that this trend is continuing at a rapid pace.

Vanuatu has to grow to survive. A rapidly growing, increasingly urbanised population requires additional investment in health and education facilities and services, more robust utilities, better roads and affordable transport over an increasingly large area. Even in the islands, where subsistence agriculture provides essential food security, more cash is needed to improve living conditions. School fee subsidies provide much needed relief to families throughout the country, but enrolment increased more in rural areas than anywhere else. And if village parents want to see their children educated beyond the basics, they need to find the means to support their children's continuing education, usually in a boarding school at some distance from the village.

We've raised ourselves up sufficiently now that were we to fall back to earth, the drop could prove fatal. The only choice left to us, then, is to keep lifting. But how?

Mobile, and soon internet, charges represent new costs for all Ni Vanuatu. Since 2008, the expense has been met largely by increased economic activity rather than the reallocation of existing money. But sustaining the use of modern technology -a necessity for rural growers and urban dwellers alike- will require additional exertions. The government is doing its part, with an aggressive 'play or pay' universal access policy, which requires all Internet providers, large or small, either to submit plans to support the goal of broadband for 98% of the population by 2018, or to face a levy of up to 4% of profits. But more infrastructure is required, and one way or another, that requires private sector investment, which in turn requires additional consumer uptake.

The country, in short, is facing a bootstrapping problem. We've raised ourselves up sufficiently now that were we to fall back to earth, the drop could prove fatal. The only choice left to us, then, is to keep lifting. But how?

Leaders and strategic planners are well aware of the challenge. To meet it, they've laid out an ambitious infrastructure investment agenda. USD 20 million to shore up Port Vila's decrepit road system. USD 70 million more in improvements to Port Vila wharf. Additional millions to improve the Seafront area, making it more attractive to tourists, residents and businesses alike. Money to subsidise inter-island shipping and to improve and re-equip the Luganville wharf. A new privately-funded airport is in the pipeline, and a USD 30 million submarine cable is ready to begin commercial service. Speculation abounds concerning a raft of other infrastructure schemes, including road-building in Tanna, Malekula, Santo and Ambrym.

In total new spending approved for 2014 is 731 million vatu - see our interactive charts on the new policy proposals.

Such plans are commendable and necessary. But we need to sound two notes of caution:

Such work is necessary but not sufficient to deal with Vanuatu's development issues. Stretched though we are, we need figure out how to do more than one thing at a time. Our health and education services need urgent attention.

Infrastructure projects are hard. Even the best-managed projects face delays and budget overruns. And with costs this high, we'll only get one swing at the bat. Whatever the results, we'll be living with them for a generation.

The ministry of finance and the reserve bank have done yeoman service in past years in charting a sober, conservative financial course for the country. Most of their work, of necessity, is quiet slogging whose importance is too often overlooked. They have done much to keep the worst from happening. Likewise, the decision to significantly strengthen strategic planning and donor coordination capacity in the prime minister's office is bearing fruit as well. There's much more still to be done, and project management is still a significant bottleneck, but it's fair to say that things are better than they were.

Below that level, though, huge gaps still exist. While PMO and Treasury can do much to assist, they simply cannot provide planning, budgeting and implementation services to each and every department. Resource constraints are Vanuatu's lot in life. With such a tiny resource pool, there will always be situations where a single person leaving can delay a project for months.

The lack of capacity to effectively implement policies and plans is probably the single greatest threat to the successful completion of the government's ambitious agenda. Vanuatu's economic growth forecasts have been consistently wrong throughout the slow recovery. This is largely due to delays caused by lack of human resources and robust management processes.

To top it off, the government's policy, planning and budgeting processes are not integrated to the degree they need to be. Ministerial fiat still threatens to destabilise what should be a careful deliberative process. We understand why politicians fight hard to see their visions realised in the short time that any minister has in one portfolio, but such impatience reflects a misunderstanding of just what policy is. A policy made properly today is a promise to see the minister's wishes respected in the years to come. In short, policy stability should be possible even when political stability isn't.

Faced with such severe constraints, and with the relative immensity of the work about to begin, prudence, deliberation and more than a modicum of luck will be necessary in order to see our current slate of projects to completion. Add to that the chronic weakness in health and education that have dangerously undermined the country's self-sufficiency, and it becomes clear that we'll have to punch well above our weight just to get by.

The last thing we need, therefore, is for well-intentioned but ill-considered projects to be thrown willy-nilly into our collective lap. There is admittedly a vast amount of work to be done. And just as clearly, different people will have different ideas about what needs doing first. But we, of all nations, can't afford to charge blindly ahead without first considering the cost.

See also our interactive 2014 budget timeline.

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If you look at the broad strokes, Vanuatu's 2014 budget books reveal a fairly healthy economy - see our interactive 2014 budget at a glance charts. But they are far less revealing than they should be about the road ahead for the tiny island nation. Overall, the economic news is okay.

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We need to be able to develop our health and education services while improving our infrastructures.

Infrastructures projects need to be approached with cautious because it can’t be undone once the results are here.

The Ministry of Finance and the Reserve Bank are to be commended for methodically managed the country’s finance. Efforts of DSPPAC are also noticed.

But the PMO and the Treasury failed to ensure implementation of such management into department levels because of limited resources.

The lack of qualified human resources and mediocre management processes to implement policies and planning are Vanuatu’s greatest weakness.

Processes of Government’s policy, planning and budgeting are partially integrated because ministers priorities their visions to be realized which indicates their confusion of the nature of a policy.

With such limited resource and such gigantic task yet to be carried out, the completion of the projects is going to be quite difficult. And with a weak health and education service, the odds are against us.

We must not add more projects on top of the amount of current ones and it is necessary to evaluate its cost.

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This article is entitled Vanuatu Budget 2014 by the Pacific Institute of Public Policy which is a prognosis on the state of Vanuatu’s finance in 2014.

The author’s intention is to give an educated opinion on the Vanuatu’s public administration performance by shedding light on its weaknesses and commending its improvement on its management of the country’s budget.

The author emphasizes throughout the whole article on the vulnerability of the country’s finance and suggests to approach the management with cautious and to evaluate the risks.

As we are in 2020, it is a fact that the state of Vanuatu’s finance has significantly been better than what it was in 2014. This may be due to the aid received for the aftermath of TC Pam or to the administration of Mr Salwai. However, whatever the case, it shows that the management is improving.

Furthermore, there is of course still a lot to be done, yet a lot has not been done in the area of infrastructure, in education and in health services. It is also clear that we cannot fix everything at once but we must and correct definitely some major faults.

The article states clearly that Vanuatu’s weakness lies in its incapacity to effectively implement policies and planning. It would be logical and affordable for the management to articulate this major weakness.

To address the problem of incapacity to integrate planning, the management may need to enforce the control measures and create more control bodies whose task would be to ensure the responsible agencies to carry out their responsibilities.

The management may also want to dissect the phases of processing policies into smaller and simpler tasks to ensure its completion.

The sanctions of penalties may also need to be strengthened and be more severe, for it will set the importance of the task and plays and excellent guarantee for its completion.

There are undoubtedly many more corrections available to improve our ability to integrate our policies and planning as well as many more factors that contribute to the vulnerability of our economy such as corruption and instability in the arena political, but it is worse to be able to create sophisticated planning that meets real needs and cannot integrate them into reality.

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2) Vanuatu's Green Growth Context (p.12-14)

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This text comes from Vanuatu Country Planning Framework 2017-2021 which was set up in 2015 by the Global Green Growth Institute and the Government of Vanuatu to achieve Vanuatu’s ambitious development.

2.1 Economic Growth

Like other South Pacific countries, Vanuatu has few economic base sectors, which are tourism and agriculture which are both of them sensible towards climate change and natural disaster. Improving resilient infrastructure is then compulsory for Vanuatu if the country wants to reach a green growth.

Since its self-governing, Vanuatu has had unstable economic growth. From 2003 to 2014, with advantageous means, Vanuatu experienced its sustained economic growth until 2009, where its economy started to stagnate because of several reasons such as the TC Pam.

Yet the economy abide dualistic with a wealthy townified economy with public service and construction sectors and a relaxed countryside economy with an agriculture and fisheries of subsistence.

Vanuatu should be out of the Least Developed Countries status in December 2017 but it has been delayed until December 2020.

2.2 Environmental Sustainability

Vanuatu’s environment is fine, since there is plenty of greenery and the pollution is very low although the data are rare. Moreover Vanuatu’s CO2e emission, in which agriculture represented a big part of it, is very minor compared to the global emission of CO2e. However, Vanuatu is going through severe climate defenselessness, it has then been recognized by the United Nations as the country most defenseless to the impacts of climate change.

Natural hazards is predicted to contrarily affect all key divisions and may surely be a threat to future economic growth.

2.3 Poverty Reduction and Social Inclusion

Since 1980, Vanuatu has made significant advance on diminishing absolute destitution and enhancing other human development markers. One of the targets priorities of Vanuatu is to get rid of poverty by 2030.  Vanuatu’s current solid growth has hence not reduce much more poverty and a huge extent of the population continues to stay near to the destitution line.

From 2006 to 2010, the national income conveyance made strides with more people getting employed in the urban areas than in the rural areas, since a large fraction of the population is engaged in subsistence cultivating and informal economy. Notwithstanding, Vanuatu is mainly a rural country.

The rural population of Vanuatu has little access to energy, water infrastructure, health services and education. Yet, the Vanuatu Millenium Development Goals Report stipulated that there has been improvement on the accessibility of water in urban areas in 2006 opposed with a decline of access to rural areas.

In Vanuatu, gender equality has enhanced over the last 20 years but there is still a significant necessity for intervention in that domain.

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“Green growth” from the Organization for Economic Co-operation and Development means “fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies”.

The text which I worked on, is a country planning framework by the Global Green Growth Institute in partnership with the Vanuatu’s Government. This planning framework as a foundation has been made in order to accomplish or to pursue Vanuatu’s pathway of green growth.

I have chosen the second part of the text which talks about Vanuatu’s Green Growth Context. This part of the text is divided in three parts which we can notice that they are the three pillars of a sustainable development. These pillars are: economic growth, environmental sustainability and social and cultural inclusion.

Firstly, we can see that in order to achieve green growth, Vanuatu must first achieve an economic growth. The Reserve Bank of Vanuatu have had estimated an economic growth of 3.3% for the year 2020 thanks to the industrial, agriculture/fishing/forestry and services sectors. Somehow, Vanuatu’s fundamental economic sectors are services which tourism is included and agriculture which are both of them sensible to climate change and natural disasters. That it is why improving resilient infrastructure is highly required and must be Vanuatu’s first priority in order to accomplish green growth.

Secondly, in order to reach green growth, the country must have an environmental sustainability. We can see several actions done such as the recent banishment of plastic but also the use of wind turbines by Unelco and the solar panel that has been set up in the Parliament backyard. Nevertheless, even with the fact that the country is not a major polluting country, it has been recognized by the United Nations as the most vulnerable country to the impact of climate change.

Last but not least, poverty reduction and social and cultural inclusion are in need to be promoted in order to enhance well-being and happiness in Vanuatu which will contribute to its sustainable growth. We can see actions such as the reserved seat for women in parliament that has been set up to promote gender equality, the little increase of the SMIC to reduce poverty and the free education for kindergardens children but yet the country stays near the destitution line, the population has small access to education which it is the same for the health services and energy and water infrastructure. There is then a significant necessity for intervention in these domains.

To put it in a nutshell, in order to accomplish green growth, Vanuatu must first succeed economically by implementing its infrastructure in priority then must maintain its environmental sustainability and reduce the most its poverty and encourage the most gender equality.

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Minister of Finance and Economic Management, Gaetan Pikioune (MP) wishes to clarify the Opposition concerns over the "Air Van Loan 'Illegal': Opposition", published in Daily Post issue no. 5700, Saturday April 27, 2019.

In his response to the article, Minister Pikioune thanked the Members of Parliament (MP) on the opposition Block for being very proactive on issues of national interest.

"Overall, I would like to assure the general public including the MPs that the public finance advanced to the national airline, Air Vanuatu (Operation) Ltd, were legally constituted under the Public Financed and Economic Management (PFEM) Act [CAP 244]," Minister Pikioune said.

"As the Minister responsible for Public Finance, I would like to outline, step-by-steps the legality of expending public fund through lending to the National Carrier.

"Foremost, in June 2018 the Parliament ratify a total supplementary budget of VT5.0 billion under Section 34 of CAP 244. Of the VT5.0 billion; VT3.0 billion was allocated towards 'Government Projects' managed within the Ministry of Finance and Economic Management (MFEM) Budget Head 3519-MFEC-OVER.

"It was the Government's intention to allocate this funding towards infrastructure development initiatives under the heading 'Government Projects'. The appropriation of such lump sums was not very specific of the projects, which the VT3.0 billion is to be expended on. However, the matter of fact is that there was an Appropriation, which was ratify against a specified 'Activity' (i.e. MFEC) for government projects, presumably for development projects.

"The practice of reallocating appropriated fund for efficient and effective use, without raising the parliamentary appropriated amount has been the practice; some very recent examples include the Tanna Games, the ICT Global Symposium, Scholarships funding etc. The fact is, the additional spending remains within the appropriated ceiling of the financial year."

Section 32 of the PFEM Act provides for the following:

(1) The State must not incur any expense or liability unless the expenditure in relation to the expense or liability is capable of being charged to a program or activity of an agency.

(2) A Bill for an Annual Appropriation Act or a Supplementary Appropriation Act must indicate the proposed expenditure under programs and activities of agencies.

(3) Any draw down of amounts from the Public Fund made under a standing appropriation must indicate the programs and activities of the agencies for which the amounts are drawn down.

"It was my understanding that the ratification of the Supplementary Budget in 2018 for Government Projects against Activity 3519 MFEC OVER satisfy Section 32 of CAP 244," said Minister Pikioune.

Further, Section 58 of the Act empowers the Minister to Lend Money. Finally, Section 42A of the PFEM Act (Amendment) provides for the Release of Public money in excess of VT10 million, which is the mandate of the Council of Ministers (COM).

"The COM Decisions were the subjects of the same, highlighted in your article for your readers," the Finance Minister said.

"They are COM Decisions 13/2019 and 80/2019 dated February 7 and April 11, 2019 respectively. Both COM Decisions were very clear that funding was to be advanced from the Government Projects fund which are reimbursable whenever the window of Supplementary budget presents itself over the first Parliamentary Session in 2019.

"It must only be advances because it the COM's understanding that such a pool of fund was already ratified and that rolling out of expenses towards Government identified projects may take a little bit longer before realisation. Further compliance with the Act noted the satisfaction of Section 58 (1): 'The Minister, on behalf of the State may from time to time, if it appears to the Minister to be necessary in the public interest to do so, lend money to any organisation, whether within or outside of Vanuatu but only on commercial terms and conditions.'

On these fronts, that the Government has negotiated the terms and conditions of both lending agreements with the National Airline resulting in the executed lending agreements.

"As Minister responsible for Public Finance, I wish to clarify to the citizens that both lending to Air Vanuatu (Operation) Ltd were Advanced and not Guarantee as stipulated on paragraph 6 of the article. These were lending which must be repaid under the Act," Minister Pikioune said.

"However, in the event that the sum paid to Air Vanuatu constitute guarantees then the Ministry will be subjected to Section 60 of the Act. In this regard, I would like to request for correction on the VT4.0 billion (guaranteed) stated on your newspaper, which is to many, is a cause of concerns.

"The Government realises the potentials the country has in its development pathways under the Vanuatu National Sustainable Development Plan (VNSDP) 2030, further expanded and linked to the Tourism Development and National Policy created the 'Shared Vision 2030' powered by Airports Vanuatu Limited (AVL), Air Vanuatu (Operation) Limited and the Vanuatu Tourism Office (VTO)."

The COM endorses the 'Shared Vision 2030' in December 2018; COM Dec 222/2018. Within the COM Decision, the Government has committed itself to certain undertakings, including resolution "(4) For MFEM to explore possibility of funding combination from different sources to support Air Vanuatu with VT3.0 billion for Air Vanuatu's implementation of the Shared Vision 2030".

"I am glad that COM has started to progress some of the resolutions of COM Dec 222/2018," Minister Pikioune said.

"Your readers were led to believe that since no narratives on such lending in the 2019 Budget Documents could be error on our part; which is to the contrary except the procedural requirements.

"Unless your readers understand the national budget processes, Daily Post readers and the general public anyone will gladly accept the assertion given that only a handful understand the overall budget processes of the national government. At the time, the Shared Vision was brought before COM, Budget 2019 final prints were already delivered to the MPs, observing the Standing Orders of Parliament prior to debating of the Appropriation bill."

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Minister of Finance and Economic Management, Gaetan Pikioune (MP) wishes to clarify the Opposition concerns over the "Air Van Loan 'Illegal': Opposition", published in Daily Post issue no. 5700, Saturday April 27, 2019. In his response to the article, Minister Pikioune thanked the Members of Parliament (MP) on the opposition Block for being very proactive on issues of national interest.

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This document is a press article from the Vanuatu Daily Post, published on May 20, 2019. It is the Minister of Finance’s response to the Opposition Block to their statement: “Air Van Loan Illegal”. In this press article the Minister is clarifying to the general public and to the MPs that the lending of money from the Minister of Finance to the National Airline, Air Vanuatu Ltd is completely legitimate under the Public Finance and Economic Management Act CAP 244.

In term of analysis, I have chosen this text to demonstrate that every actions made must comply with the regulations, the laws and the Constitution.

The Public Finance and Economic Management is there to frame every action made by the Ministry of Finance such as the implementation of the budget and this means the revenues and expenditures of the country.

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To conclude, Vanuatu should implement a budget policy that complies with laws such as the Public Finance and Economic Management Act and also complies with the process of budgeting, a budget policy that meets the needs of the country economically, environmentally and socially as described in the Vanuatu People’s Plan or Vanuatu Sustainable Development Plan and finally a budget that suits the seven priorities of the country as stated in the Priorities and Action Agenda in order to support Vanuatu’s sustainable growth.

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This article is a response from the Minister of Finance, Gaetan Pikioune to the Air Van Loan Illegal statement made by the Opposition Block published on the Daily Post.

He assured the public and the MP’s that the loan of the national airline, Air Vanuatu Ltd is a legitimate establishment under the Public Finance and Economic Management Act CAP 244.

He then sketch the steps of expending the public fund by lending to a national carrier that it is completely legitimate.

In June 2018, the parliament ratify a total supplementary budget of VT5 billion which VT3 billion of it was assigned to the Government Projects more precisely for the infrastructure development.

However, there were a misuse that were sanctioned because of a specified activity which is part of the government projects for development projects.

Then the practice of transferring appropriate fund for efficient and effective use without respecting the appropriate amount. But the spendings remain within the appropriate ceiling of the financial year.

He then makes it clear that the Act empowers the Minister to lend money by the section 58 and that the amendment Act allows the release of an extra public money for an amount of VT10 million instructed by the Council of Ministers.

Yet, COM decisions were very clear that funding could come from the Government Projects fund and are reimbursable.

He then aligns that, the Act allows the Minister from time to time to lend money to any organization within or outside Vanuatu on commercial terms and conditions if necessary.

The Government has then negotiated the terms and conditions of lending with the National Airline.

To finish, he clarifies that lending to Air Vanuatu Ltd were advanced and had to be repaid under the Act.

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Budgeting enables a State to reach precise financial objectives, targets priorities, anticipate the unexpected and avoid the consequences of over-indebtedness.

We can ask ourselves: is the 2020 proposed budget is undertaking government priorities?

In a first place we will see the priorities and in a second place we will talk about the undertaking of these priorities by the budget.

To begin with, when the Minister of Finance said that Vanuatu will be achieving the Least Developed Countries Status by December 2020 this means that Vanuatu will have a positive economic growth in 2020 and this is part of its development plan and its own framework policy which is the Vanuatu 2030: The People’s Plan that provides an inclusive, holistic and comprehensive vision of a stable, sustainable and prosperous Vanuatu. Since a Government is established to conduct the politic of the nation and for the nation then I agree with the Minister of Finance when he said that this budget is for Vanuatu’s nation and acknowledge his fair-mindedness. Vanuatu like many other countries in the world, has targets priorities. Stated in the Priorities & Action Agenda, Vanuatu priorities are: improved business opportunities and investment environment, improve resilient infrastructure, improve education quality/accessibility and training outcomes for children and young people, improve quality health care, improve service delivery, improve resilience and nature resource management and finally social inclusion/security/peace and justice.

However, Mr Pikioune announced clearly that the budget will build and enhance the nation’s living by executing the priorities which he had stated but also which go along with the national priorities. In my opinion, the budget is well undertaking the priorities since the government cannot work without complying with the National Sustainable Development Plan and the target priorities.

To conclude, I could say that the 2020 budget is well undertaking the targets priorities settled by the government since it would enrich and upgrade Vanuatu people’s life.