The Minister for Treasury, Ian Ling-Stucky in today’s Parliament sitting presented the Ministerial Statement on the 2020 Final Budget Outcome (FBO) and this year’s Mid-year Economic and Fiscal Outlook (MYEFO).
The statement revealed that total deficit had risen from K4.6 billion to K7.3 billion and total debt increased to K40, 168 million.
The Treasurer expressed his discomfort with the high deficit levels and the implications that come along with it. In addition to the increased deficit and debt, domestic revenue dropped by K2.5 billion to an outcome of K10, 668 million.
However, the Treasurer described the budget as “The best-managed budget in PNG history.”
He said, “The 2020 Budget was delivered with even more structural changes than originally planned, despite COVID-19. Specifically, we reduced the 2020 operational budget from K12, 160 million down to K11, 913 million.”
The Treasurer said the Marape-led government has a three-pronged approach to achieving higher growth rates with a growth-focused budget, smarter support for businesses and families and stronger institutions.
“The Marape Government is a government for productive infrastructure, not the wasteful, unproductive, spending on roads to nowhere and fancy buildings that have fallen into disuse and disrepair.”
“The MYEFO is a continuation of good economic management and budget repair,” the Treasurer said.
He further stated, the government now, is working for a more inclusive economy that leaves no one behind.
“We have a broad plan, covering continuing work of budget repair and reconstruction, working with our businesses, to create a friendlier environment, for sharing their goods and services both domestically and internationally,” he said.
Additionally, the Treasurer said the government is working to modernize and reform government institutions.