PNG’s budget is in a much more fragile situation than earlier revealed, says Minister for Treasury, Ian Ling-Stuckey, whilst giving an update on his due diligence check on the budget.
“While exposing the budget mismanagement of recent years, I also want to propose solutions. Proposing sensible solutions is part of the work to help retain domestic and international confidence in the strength of our economy and its enormous future possibilities,” he stated.
“As part of a multi-pronged approach to finding solutions, I met with Australian officials in Port Moresby on Wednesday 18 September to discuss how Australia could support the Government of Papua New Guinea.
“The meetings with senior officials from Australia’s Department of Treasury, Finance and Foreign Affairs and Trade built on previous discussions between Prime Minister Marape and Prime Minister Morrison and at the recent PNG-Australia Ministerial Forum.”
The Treasurer highlighted his plan to bring credibility back to the budget and ultimately grow the economy to benefit all Papua New Guineans. The discussions were constructive and both sides agreed to work together on how best to achieve these major budget and economic priorities over the coming months.
The Treasurer welcomed discussions with Australia as Papua New Guinea faces its largest budget deficit to date. The Treasurer has already conducted a due diligence assessment to better understand the true state of the budget and organise for the IMF to verify these numbers.
The discussions are delivering on the Treasurer’s commitment to work with other economic ministers, the public service and international expertise to formulate better policies to respond to the current challenges but put the budget and economy on a more sustainable and inclusive long-term path.
“We will deliver a supplementary budget to the Parliament which will set out early steps for ensuring PNG is living within its means. These decisions aren’t taken lightly but recognise short-term change is needed if we want to take back control of PNG’s economy. We are working with trusted partners such as Australia to assist us in repairing the budget which will bring credibility back to the budget both in PNG and overseas,” said Treasurer Ling-Stuckey.
(Treasury Minister Ian Ling-Stuckey with Australian officials in Port Moresby)