Auditor General probing government’s $20M budget error

Premier Dr Natalio Wheatley has confirmed that the Auditor General is examining the circumstances surrounding a $20 million budget discrepancy linked to the implementation of salary increases for public officers.

Speaking on a recent radio programme, Premier Wheatley clarified that while the budgeted amount for salaries was miscalculated, the government did have sufficient funds allocated.

“Just to say, we don’t have a shortfall in the budget. What the situation is, we were told that the salary would cost… one particular amount, and it ended up being a higher figure. But we did have monies in the budget to be able to address the implementation of the new salaries,” he explained.

The budget miscalculation, disclosed in 2024, initially projected that the salary adjustments would require $11.7 million. However, an assessment later revealed that the actual cost exceeded $25 million, leading to a shortfall of approximately $13.3 million.

Premier Wheatley said the latest update on the matter came from Governor Daniel Pruce. “The last report I got on it was from the Governor, who said that the Auditor General was looking at it. And perhaps at the next Cabinet meeting, I can get an update from the Governor on the pace of the report that the Auditor General would be doing,” he stated.

Heightened scrutiny

The budget discrepancy led to heightened scrutiny among lawmakers, with Opposition members and members of the public questioning the accuracy of government financial planning. While the Premier did not provide further details on potential corrective measures, he assured that updates would be provided as the review progresses.

The government had previously taken steps to address the financial gap, including a freeze on new government hires for non-essential positions, reduced travel by officials and restrictions on discretionary spending. Additionally, discussions have been ongoing about revenue generation and potential cost-saving measures.

Despite criticism from opposition figures, Premier Wheatley maintained that the government followed due process in addressing the issue. He also reiterated the importance of periodically assessing public sector salaries and allowances, stating, “It is prudent and important to, at regular intervals, evaluate the salaries that we have and to see whether they are adequate, as it pertains to what other persons who are in leadership make in the region and in the world, and we act in accordance with those“.

The Auditor General’s report is expected to shed further light on how the miscalculation occurred and whether any policy adjustments will be necessary to prevent similar issues in the future.