Checkmate

Clamping down on excessive government spending, cabinet on Wednesday passed the Fiscal Responsibility Act, the UNF governments solution for the growing problem.
The Act seeks to reduce the budget deficit to 5 per cent of GDP by 2006 and hold state institutions responsible for spending public funds.

rn rnFinancial analysts say the move will prompt full accountability and responsibility from all public offices.

rnrnIn addition to putting spending plans of the government in power under the strict scrutiny the Fiscal Responsibility Act will also expose the impact of vote catching election proposals on the public purse.

rnManifestos of major parties will be referred to the Central Bank to asses the long- term impact on government finances.

rnPre-election vote buying exercises such as sudden salary and pension increases are likely to be more difficult under this law.

rnUnder the proposed law the Central Bank is required to investigate and comment on all government spending plans within one wee