Don’t panic, Serame urges amidst struggling fiscus

This sharp decline has sparked widespread concern about the fiscal trajectory of the fund. Despite these concerns, the Minister of Finance maintains that the nation's finances are not in the red.The financial downturn of the GIA comes at a critical time, as government has initiated a stimulus budget for the 2024–2025 financial year. According to Finance Minister Peggy Serame, this is necessary to bolster economic growth following a subdued economic period due to the pandemic and ongoing geopolitical tensions.

Delivering a statement to calm widespread concerns over the status of the reserve this week, Serame told Parliament that government spending has been on an upward trajectory despite depressed revenue streams. She pointed out that significant capital has been pumped into state-owned enterprises and various initiatives, even as revenues continue to shrink.