Budget Focuses On Families, Businesses

The 2022 Budget will continue the repair and economic recovery path with strong focus on non-resource sector growth and at the same time support families and businesses.

The Money Plan will also see increased development and capital funding to high priority programs and ensure sufficient funding for key social sectors to stimulate economic growth.

It also supports the successful delivery of 2022 Budget. The total Budget of K22,174.8 million, 9.3 per cent higher than 2021 Supplementary Budget.

With the revenue Envelope of K16,190.2 million, 18.4 per cent higher than 2021 Supplementary Budget, the fiscal deficit is K5,984.7 million that is 5.9 per cent of 2022 GDP.

The deficit will reduce from the high point of 8.9 percent of GDP during the worst of the COVID-19 crisis in 2020 to 5.9 percent in 2022.

This is a substantial pace of fiscal consolidation, especially in the context of funding the 2022 election with K600 million.

The economy is expected to grow from K93 billion to K101.7 billion in the future.

Treasurer, Ian Ling-Stuckey said: “Finally breaking the K100 billion barrier, our vital non-resource economy is expected to increase by 3.5 percent in real terms, with election related spending expected to provide a boost to activity in the non-resource economy.

Including the mining sector, growth is estimated to be 54 percent, which reflects the expected recommencement of Porgera and improvements in Ok Tedi production inflation in 2022, which is expected to be 5.6 percent.

The Treasurer added that it is a fiscally sensible and responsible budget designed for our times, continuing the task of consolidation we commenced in 2019, and at the same time supporting families and businesses.

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