Price Waterhouse Coopers (PwC) has taken a bold step in introducing four priorities that will assist the government in supporting the implementation of the 2024 budget.
After the tabling of the 2024 budget in Parliament, PwC hosted a budget breakfast the next morning to highlight the analysis and economic impact of the budget, of which four priorities was mentioned.
Leading the presentation was PwC Chief Economist Jeremy Thorpe who said the first priority the government must look at is improve foreign exchange availability.
Thorpe said this is because current foreign exchange restrictions have a significant drag on the PNG economy that suppresses investment and consumption.
He said the second priority is having a more effective tax administration.
He said broadening the taxpayer base and improving the efficiency of the Internal Revenue Commission will be critical in meeting ambitious revenue targets.
“However, increased funding for revenue agencies will need to be wisely used,” Thorpe said.
The third priority is the commencement of planned resource projects in a timely manner, supported by skills and infrastructure projects aligned with industry needs.
Thorpe said the fourth priority is fiscal restraint as tax revenues increase, this is due to the past resources boom which saw the PNG GDP double, and government expenditure boom unsustainably as GDP subsided.