Revenue from mining not sufficient to support Government

​Improvement in the balance of payments from Ok Tedi and Porgera mines were not sufficient to generate revenue for the Government.

The productions of these two mining companies were closed in 2015 due to the nationwide drought.

With their recommencement and a recovery in agriculture production and export, following the end of the El Nino drought, as well as increased production at Lihir and Ramu mines, the revenue is slowly increasing.

This, together with lower imports, resulted in the balance of payments recording an overall surplus in 2016, from the deficit in 2015.

According to the Bank of Papua New Guinea 2016 Quarterly Economic Bulletin, it stated that with lower tax and non-tax revenue, total Government revenue was lower than budgeted, and with the expenditure level almost as budgeted, a budget deficit was realised for 2016.

Governor Loi Bakani said the improvement in the external sector especially from non-LNG exports resulted in improved foreign exchange inflows especially in the second half of 2016.

Freddy Mou