The Government has released a 13-year fiscal plan, which showed for the first time since 2010 that PNG had the option to move to a surplus budget in 2027.
Treasurer, Ian Ling-Stuckey said the fiscal plan framework would enable PNG to have zero debt for the first time ever. However, he said this is not our only option.
The Treasurer added that if governments maintain the steady path of budget repair and reconstruction, then the 12th Parliament elected by the people in 2027 has profound choices.
“For example, it could decide to build the budget surplus to 1 per cent of GDP, then the debt to GDP ratio would fall down to 19 percent of GDP and the debt level would drop to below K50 billion.
“But there would be an additional K0.9 billion available for additional capital projects in 2028, growing to an extra K20.6 billion by 2034.
“Of course inflation affects the spending values of these funds, but from the years 2028 to 2034, there would be over K65 billion available for increased capital expenditure. Imagine the transformative impact of such a program on our country.”
The 13-year fiscal plan is based on moving to a reasonable growth rate of the non-resource parts of our economy of 5 percent in real terms.
Mr Ling-Stuckey said crucial to having this credible 13-year fiscal plan is having the credible economic team that can actually deliver the plan for our great country of PNG.