{
  "title": "IMF Staff Completes a Visit to Solomon Islands",
  "publication": "IMF News, March 6, 2018",
  "sourceUrl": "https://www.imf.org/en/news/articles/2018/03/06/pr1874-imf-staff-completes-a-visit-to-solomon-islands",
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  "summary": "Press Release No. 18/74",
  "publishDate": "2018-03-06",
  "sections": [
    {
      "heading": "Mission overview and timing",
      "content": "- Press Release No. 18/74\n- Visit led by Ms. Alison Stuart to Honiara February 27-March 2.\n- End-of-Mission press release dated March 6, 2018.\n- Statement: views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board; this mission will not result in a Board discussion.\n- Media contact: PRESS OFFICER: Raphael Anspach; Phone: +1 202 623-7100; Email: MEDIA@IMF.org"
    },
    {
      "heading": "Key macroeconomic findings",
      "content": "- “Growth has been relatively buoyant, inflation is contained, and exchange rate and monetary policies are broadly appropriate.”\n- Fiscal buffers have eroded since 2016 and domestic arrears have built up.\n- The fiscal position is described as fragile, heightening the need for fiscal adjustment in 2018 and public financial management reforms."
    },
    {
      "heading": "Fiscal assessment and recommendations",
      "content": "- The authorities’ fiscal consolidation goal in the 2018 Budget is commended.\n- Policy measures and recommendations:\n  - Anchor the budget on realistic revenue projections.\n  - Align spending with the available resource envelope.\n  - Take steps to eliminate arrears.\n  - Include a contingency reserve in the budget.\n- Rebuilding a fiscal buffer in 2018 will require a temporary slowdown in government‑financed development spending to raise the cash balance to an adequate level and restore response capacity to shocks, including natural disasters.\n- When pursuing expenditure restraint:\n  - Maintain expenditures in priority areas.\n  - Curb expenditures in areas which have expanded recently, for example: tertiary scholarships, constituency development funds and shipping grants.\n- Encourage continued pursuit of concessional external financing for critical infrastructure consistent with debt sustainability and implementation capacity."
    },
    {
      "heading": "Revenue mobilization and tax policy",
      "content": "- Support for the ongoing tax review to improve revenue mobilization.\n- Objectives for the tax review:\n  - Broaden the tax base.\n  - Reduce revenue volatility.\n  - Improve compliance.\n  - Eliminate ad hoc exemptions.\n  - Simplify the tax laws."
    },
    {
      "heading": "Public financial management and public investment",
      "content": "- Pressing ahead with public financial management reforms will improve spending efficiency.\n- Combine public financial management reform with natural disaster mitigation measures to raise the benefits of public investment.\n- Improve accountability and transparency of the constituency development funds."
    },
    {
      "heading": "Financial stability, contingency planning, and external engagement",
      "content": "- Authorities should closely monitor potential macroeconomic and financial stability risks from natural disasters, domestic and external shocks, including via correspondent banking relationships.\n- Close regional engagement with development partners, banks, regulators, and supervisors is encouraged to assist with contingency planning."
    },
    {
      "heading": "IMF support and closing remarks",
      "content": "- “The IMF stands ready to support the government’s reform efforts through policy advice, technical assistance and capacity development.”\n- The IMF team underscored the excellent, cooperative relationship between Solomon Islands and the IMF and thanked the authorities for their hospitality and productive discussions.\n\nIMF Press Release No. 18/74, March 6, 2018.\n\n---\n\n\n References\n\n- Solomon Islands and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/03/06/pr1874-imf-staff-completes-a-visit-to-solomon-islands"
    }
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    "Published: March 6, 2018",
    "Press Release No. 18/74",
    "Visit led by Ms. Alison Stuart to Honiara February 27-March 2.",
    "End-of-Mission press release dated March 6, 2018.",
    "Statement: views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board; this mission will not result in a Board discussion.",
    "Media contact: PRESS OFFICER: Raphael Anspach; Phone: +1 202 623-7100; Email: MEDIA@IMF.org",
    "“Growth has been relatively buoyant, inflation is contained, and exchange rate and monetary policies are broadly appropriate.”",
    "Fiscal buffers have eroded since 2016 and domestic arrears have built up.",
    "The fiscal position is described as fragile, heightening the need for fiscal adjustment in 2018 and public financial management reforms.",
    "The authorities’ fiscal consolidation goal in the 2018 Budget is commended.",
    "Policy measures and recommendations:",
    "Rebuilding a fiscal buffer in 2018 will require a temporary slowdown in government‑financed development spending to raise the cash balance to an adequate level and restore response capacity to shocks, including natural disasters.",
    "When pursuing expenditure restraint:",
    "Encourage continued pursuit of concessional external financing for critical infrastructure consistent with debt sustainability and implementation capacity.",
    "Support for the ongoing tax review to improve revenue mobilization.",
    "Objectives for the tax review:",
    "Pressing ahead with public financial management reforms will improve spending efficiency.",
    "Combine public financial management reform with natural disaster mitigation measures to raise the benefits of public investment.",
    "Improve accountability and transparency of the constituency development funds.",
    "Authorities should closely monitor potential macroeconomic and financial stability risks from natural disasters, domestic and external shocks, including via correspondent banking relationships.",
    "Close regional engagement with development partners, banks, regulators, and supervisors is encouraged to assist with contingency planning.",
    "“The IMF stands ready to support the government’s reform efforts through policy advice, technical assistance and capacity development.”",
    "The IMF team underscored the excellent, cooperative relationship between Solomon Islands and the IMF and thanked the authorities for their hospitality and productive discussions.",
    "[Solomon Islands and the IMF](http://www.imf.org/external/country/SLB/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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