2016 supplementary budget

The National Government, in last month’s Parliament sitting, passed the 2016 Supplementary Budget to raise revenue from its national purse to meet the shortfalls in its 2016 national budget revenue projections.

Department of Works had cuts to its operational and capital expenditures, totalling over K200 million.  

"Our accounts clerks are doing a full review of the supplementary budget and then we’ll see what the implications are," Secretary Wereh told Loop PNG.  

This is the third Supplementary Budget passed under O’Neill- Dion Coalition Government.  

Treasury Minister Patrick Pruaitch when handing down the budget on Thursday stated that “the 2016 supplementary budget comprises adjustments that include both expenditure saving measures of K928 million and additional revenue raising measures of K958 million.”   

This will see many government projects put on hold until next year, so monies will used to fund the 2016 National Budget because of shortfall in projected revenue collection.  

Prime Minister Peter O’Neill made this statement in Parliament on Thursday after the 2016 Supplementary Budget was tabled by Treasury Minister Patrick Pruaitch.

O’Neill said cuts in government expenditures to meet the shortfall in projected revenues, to implement the 2016 National Budget, will not affect its key policy areas of free education, free health care, support to churches and partners, infrastructure development and DSIP and PSIP funding.   

He made this statement on Thursday after Treasury Minister Patrick Pruaitch tabled the 2016 Supplementary Budget.  

“Coming to Parliament in 2002 under Somare Government, we inherited an economy which was projected to be in surplus by the previous government, (but) we inherited an K800 million deficit and the strategy at that time is to return to surplus as possible,” O’Neill said.  

“The concept of bringing a supplementary (budget) addresses a very critical area and that is to address a budget that was wrong in the first place.”

Poyle also claimed the alternative government’s response in November last year regarding the 2016 budget projections were spot on.   

“If you look at the budget projections we gave on this side and the projections you gave, and compare with what you are doing right now, this side was on spot. 

Shadow Finance Minister Bire Kimisopa made this statement in Parliament yesterday after the supplementary budget was tabled by Treasury Minister Patrick Pruaitch.   

“If we have a sovereign wealth fund we will be able to mitigate all these, we will be able to support the budget, and perhaps consolidate the exchange rate and give confidence to private sector in terms of the foreign currency situation in the country to access foreign currency to pay for goods and services overseas,” Kimisopa said.

The Goroka MP made this statement in Parliament after the supplementary budget was tabled by Treasury Minister Patrick Pruaitch yesterday.     

“The medium term fiscal outcome is quite clear in terms of inflation, if you look at 2011 it started roughly about 4 percent and we are tracking on an upward projected for 2016 is 6.6 percent, I suspect by end of the year we could go up to 6.8 or 6.9 percent,” Kimisopa said.

The budget passed yesterday in Parliament will see cuts across all sectors of the government expenditures to raise much needed revenue to fill the budget vacuum because of drop in forecasted 2016 revenues. 

The 2016 supplementary budget comprises adjustments that include both expenditure saving measures of K928 million and additional revenue raising measures of K958 million.         

Opposition Leader Don Poyle slammed the coalition government for bulldozing the passing of the budget on the same day without giving notice in advance for MPs to research and debate before passage of the budget.

Treasury Minister Patrick Pruaitch, when handing down the budget, said: “The 2016 supplementary budget comprises adjustments that include both expenditure saving measures of K928 million and additional revenue raising measures of K958 million”.         

Introducing a supplementary budget will be the major agenda on the National Government tick list.  

Treasury Minister Patrick Pruaitch last week confirmed that the Government will introduce a Supplementary Budget in this August Parliament sitting.

Pruaitch said the Government is closely monitoring the current economic condition and will table the budget before Parliament rises.

He was responding to questions from Goroka MP Bire Kimisopa on when the government will introduce a mini budget to help the country in this financial situation.