MercoPress. South Atlantic News Agency

Falklands Financial Secretary announces a “Balanced Budget”.

The Falklands Financial Secretary Derek Howatt was able to announce to the Legislature on Friday afternoon that despite earlier fears of a deficit, he was after-all able to announce a ?balanced budget' for the financial year 2001/02.

The welcome news for the Islands population of 2,100 came despite the fact that all Government employees are to receive a 5% increase in their salaries, and retired civil servants will receive a similar 5% increase in their pensions. The increases will give a qualified school teacher who is teaching in the Falklands, and currently receives £22.000 per annum ($US35,000) a monthly salary increase of £110 or $US180, which raises their monthly salary to just short of £2,000 (two thousand pounds) or $US3, 000.

A senior Secretary who currently receives £1,250 per month ($US2, 000) will see their salary rise to just over £1,300 ($US2,070) per month. Elected members of the Legislature also approved a 15% increase in their allowances, the first such increase since 1998. However this will not become effective until after the General Election in November.

Mr. Howatt announced a massive Capital budget amounting to £13.4 MILLIONS. This includes a total of £6 millions for ?construction schemes'. There is £2.2 millions for the further construction of roads in Stanley and in the ?Camp' (Farm land). Ross Road, the main street in Stanley which is now walked upon by around 30,000 cruise vessel tourists each summer, will be re-built while £1 million will be allocated to improving housing for the disabled and ?sheltered housing' for the elderly members of the community.

Almost another £1 million has been set aside during the forthcoming year for ?municipal services' such as a series of new housing plots to meet the needs of the ever-growing Stanley population, and for improved electricity and water supplies in the capital.

In all the capital budget provides for more than £6,400 to each of the Islands 2,100 population, which as one official said later, ?Is a truly remarkable figure and one that most Countries in the world would be proud of'.

Despite the salary increase the Financial Secretary was able to announce that Income Tax would NOT be increased this year although he did say that duty on cigarettes would be increased by 10% and on alcohol by 5%. This will increase a packet of 20 cigarettes by 14 pence and 31 pence on a bottle of alcohol.

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