Government revenue

The productions of these two mining companies were closed in 2015 due to the nationwide drought.

With their recommencement and a recovery in agriculture production and export, following the end of the El Nino drought, as well as increased production at Lihir and Ramu mines, the revenue is slowly increasing.

This, together with lower imports, resulted in the balance of payments recording an overall surplus in 2016, from the deficit in 2015.

Bakani, in his Quarterly Economic Bulletin also reiterated his call for Government departments and agencies to live within their means while maintaining critical services for the public.

He said the level of foreign exchange reserves as of Dec 30, 2016, was K5,266.9 (US$1,685.4) million, compared to K5,467.5 (US$1,725.1) million at the end of September, 2016.

Bakani explained that the Government’s decline in revenue in 2016 is due to low commodity prices and low tax collections.

He said both revenue and expenditure have been lower than budgeted for in 2016.