The country’s economy plans for modest increases in revenue and expenditure until 2020 may not be realistic, ADB’s report launched today in Port Moresby has revealed.
ADB’s Pacific Department biannual economic report; the Pacific Economic Monitor indicated that without further fiscal consolidation, PNG is likely to miss its fiscal targets.
ADB country director Marcelo Minc said the budget formulation needs to become more focused on delivering services.
He said improving infrastructure and enabling private sector participation remains central to achieving broad based, inclusive and sustainable economic growth.
“For instance increasing export competitiveness in the fisheries sector could help expand jobs.”
The report highlighted that a medium-term fiscal strategy that sets a credible path for achieving balanced budgets in the future is needed to guide macroeconomic policy.