The Opposition has warned the country to prepare for turbulent times starting next year.
Opposition Leader and former Treasurer, Don Polye in a statement warned that effects of the Government’s numerous borrowings and reckless spending in 2016 will be felt in the 2017 Budget cuts.
Polye warned that Prime Minister Peter O’Neill and his government will again pass the buck down to the consumers, especially the little people who he says will suffer the most.
“Kina is not strong anymore, taking a downward trend and the buying power is fast diminishing,” warns Polye.
He said most of the departments will have budget cuts and this will have serious consequences on their operations.
Polye said economy has been hard-hit by the combination of global economic variables coupled with massive borrowings and government’s inability to effectively manage the country’s economy.
“Massive borrowings and unbudgeted expenditure seen this year will eat into 2017 budget and the effects will be passed down to the people,” Polye said.
“I have warned the government on numerous occasion not to go on a borrowing spree as this will have an adverse effect on PNG economy.
“The government failed to take heed of the warnings and now you have Chief Secretary and the PM admitting that 2017 Budget will be cut.
“They are failing to tell the nation the reason behind the 2017 Budget cuts. Now let me tell the nation on their behalf that 2017 Budget will be slashed because of massive borrowings and government’s failure to manage the economy,” said Polye.