Patrick Pruaitch

During a National Alliance Party event in Port Moresby on Friday, Pruiatch said the current economic strategy employed by  the coalition Government led by the Peoples National Congress has resulted in massive debt, a plunging GDP and growth rate, and a debt-to-GDP ratio myth.

NA is a major partner in the coalition Government.

Pruaitch presented these statements, witnessed by members, intending candidates, current members of Parliament, Party executives, NA founder and former Parliamentary leader Grand Chief Sir Michael Somare.

Treasury Minister, Patrick Pruaitch, revealed this and said despite intervention made the backlog is great and possibly too late to stop some dire consequences.

Pruaitch said this during a National Alliance Party event in Port Moresby where he also spoke against the PNC-led coalition government’s economic strategy which he says has resulted in massive debt, a plunging GDP and growth rate, and a debt-to-GDP ratio myth.

National Alliance is a coalition partner in the O’Neill-Dion government.

Speaking at a National Alliance Party event in Port Moresby, Pruaitch highlighted how the current government’s economic strategy has resulted in massive debt, a plunging GDP and growth rate, and a debt-to-GDP ratio myth.

Pruaitch, who is the Parliamentary Party Leader, spoke to members, intending candidates, Members of Parliament, Party executives, including former NA leader Grand Chief Sir Michael Somare.

Treasury Minister, Patrick Pruaitch, signed the loan agreement today with World Bank PNG Country Manager, Anne Tully, as well as Planning and Monitoring Secretary, Hakaua Harry, and Water PNG Managing Director, Raka Taviri.

PNG Government is also counterpart funding the program with K20 million bringing the total funding to K243 million.

Minister Pruaitch said the signing today was a milestone for both the country and the World Bank and was grateful for the support which he said will support the government’s development plans to improve living standards.

Opposition Leader Don Polye in a statement said the alternative government proposes that a harsh taxation regime for housing allowances should be abolished.

He has described the government’s new taxation strategy for housing allowance as desperate and harsh.

“This is what I said in our Budget Reply. Taxation strategy for housing allowance is so harsh at the wrong time.

“It is a desperate action by the government to raise revenue when it has mismanaged the economy and country’s cash flow.

Treasurer, Patrick Pruaitch when delivering his speech today at the 14^th Mining conference in Sydney, Australia echoed these sentiments.

He said as interest rates in advanced countries normalised, global economic conditions will also improve and become more predictable.

He added that the 2017 budgets are highly conservative and do not take into account PNG’s increased economic resilience as well as the remaining potential for major new resource projects.

Treasurer Patrick Pruaitch said the construction might start in 2018 or 2019.

Speaking at the 14^th Mining Conference in Sydney this morning, Pruaitch said: “With the benefit of hindsight, I assure you we would have done things differently if we had known commodity prices were primed to fall. Instead we went for expansionary budgets.”

He said PNG’s total borrowings would have been far less in 2014 and 2015 when the government accounted for almost half the total debt raised during this five-year term.

Pruaitch issued a statement after confusion arose from the Opposition about the figures in the Appropriation Bill for 2017.

“These are the figures provided in my budget address, last week and included in Volume 2 and 3 of the budget documents released in Parliament, which uses standardised Government Financial Statistics 1986 data,” Pruaitch said.

He was answering a series of questions about the relevance of DSIP funds after revealing the 2017 National Budget at the press lock-up on Monday.

After savings measures were introduced with declining revenue, all government priority areas experience cuts in the K12.9 billion budget handed down, except the DSIP component.  

But Provincial Service Improvement Program (PSIP) money allocated to provincial government to support their districts got a K10 million slice.

This has resulted in the Government handing down a 2017 deficit budget of K12.9b on Tuesday.

Treasurer Patrick Pruaitch when handing down the budget said it has been no secret that the country have been facing economic crisis.

“We have been forced by circumstances to tighten our budgetary situation further through Supplementary Budgets in 2015 and 2016.

“In doing so we have maintained a conservative course in terms of fiscal sustainability and will be well placed to capitalise on developments when global economic conditions improve.”