PNG economy 2016

In a recent press conference, the former prime minister said: “We all know that the government is going through very tough times.

“The current economic and financial situation did not happen yesterday or last year. It started building up a long time ago.”

Sir Julius said when PNG was going through a reasonably balanced budget, the government opted for a deficit budget.

“You and I know that the time to paint the roof is when the sun is shining. The sun was shining very bright about four or five years ago.

Opposition spokesman on Finance & National Planning, Bire Kimisopa, says tax revenue has tanked over the last four years at approximately K9 billion per year, and is expected to fall in 2016 and in 2017 respectively.

“Any dividend from the State-Owned Enterprises will be subject to the prevailing adverse economic conditions and may erode the strength of their combined balance sheet,” says Kimisopa, who is also the Goroka MP.

“The extraction of loans from SOEs, disguised in the form of dividends, will not exonerate the SOEs from fraudulent and deceitful conduct.

Prime Minister Peter O’Neill made this statement in Parliament on Thursday after the 2016 Supplementary Budget was tabled by Treasury Minister Patrick Pruaitch.

O’Neill said cuts in government expenditures to meet the shortfall in projected revenues, to implement the 2016 National Budget, will not affect its key policy areas of free education, free health care, support to churches and partners, infrastructure development and DSIP and PSIP funding.