Speaking in Parliament yesterday during the debate on the second 2008 supplementary appropriation bill, Mr. Fono said government must be prepared to tighten its spending as the crisis is likely to affect Solomon Islands in the not too distant future.

Mr. Fono cited the Asian financial crisis in 1997 which had adverse impacts on government revenue from log exports to China.

The deputy prime minister has called for understanding from the people, as the global financial crisis is likely to affect government spending on social services to the people.

He said there is a perception that government is not doing enough in the provision of services to the people.

But Mr. Fono said the perception is wrong because government is providing free health services and is now moving to introduce a free education policy.

He said the health budget is the biggest in government's budget allocation and the education budget continues to increase every year.

Source: SIBC