Treasurer

In his Supplementary Budget speech, the Treasurer said he had set out four examples of forward looking policies. They are examples of how they are trying to broaden PNG's economic growth focus away from the resource sector and into the broader economy.

"Following is an extract from my Supplementary Budget speech last Thursday which was under the heading ‘Looking forward’ and provides four specific examples of a new vision for PNG," outlined the Treasurer.

“We are borrowing, paying off expensive debt with much cheaper international financing, such as the zero percent interest rate on the no conditions IMF loan received in June,” said Treasurer Ian Ling-Stuckey.

“One issue with the substantial increase in international financing is that much of it is expected to arrive in December – possibly up to K2.5 billion of it. So we are facing a major cash management challenge of cash arriving late but having to continue paying for our health, education and justice systems.

“A two-stage solution is planned.

Ling-Stuckey clarified this again, for the member for North Waghi Fabian Pok.

Treasurer Ian Ling-Stucky, who was questioned on this by the member for Ialibu-Pangia on Tuesday, repeated that the loan was interest free with no conditions attached.

“There are no conditions attached to the IMF loan,” says the Treasurer.

However, the former Prime Minister and Ialibu Pangia MP Peter O’Neill remained unconvinced.

“There are two conditions that are normally given by the IMF to member countries that are seeking this.

Treasurer Ian Ling-Stuckey says this targeted, decentralised support will get to those who need it most as quickly as possible.

“The money – K500,000 for each district – has already begun to flow to district COVID-19 accounts.

“The informal sector and MSMEs are the backbone of the rural economy and provide livelihoods for over 80 percent of the population. By supporting MSMEs, we support the rural and subsistence economy throughout the nation, which has been hard hit by the State of Emergency lockdown.”

Namah made this call in a press conference in Port Moresby.

Leader of the Opposition Belden Namah is calling on the Government to tell the people of the country how the 23 million Kina COVID-19 funds is being spent as there is no supplementary budget to cater for the expenses.

Mr Namah made this call after Treasurer Ian Ling Stuckey announced an additional K600 million to fight the COVID-19 pandemic in the country.

“Whilst all the rest of the world is scaling down on its response on COVID-19, PNG is scaling up with its response.

“We still know so little about this enemy. There is great uncertainty.

“We know, based on fighting viruses in the past, that measures such as social distancing, washing hands with soap, coughing and sneezing into a cloth or elbow are vital.

“We know that lockdowns can slow the spread of the disease. But what type of lockdown? Just at international or internal borders? Complete lock-down or partial lock-down? And if a partial lock-down, what are the vital actions to protect livelihoods while also reducing health risks? Are we aiming for eradication or suppression?

This follows Prime Minister James Marape’s state visit to New Zealand in February where it was agreed to forge closer relations between the two countries.  

“I thanked the New Zealand government for its continuous support for PNG’s economic development,” stated the Treasurer.

“The starting point at the time of my appointment as Treasurer on 27th of August 2019 has now been revealed as a debt to GDP ratio of 42 percent,” he said.

“The debt to GDP ratio will be reduced from 42 percent down to 38 percent in just five years. Clearly, getting debt back under control is a long-term task given the mismanagement during the ‘lost decade’.”

The Treasurer said the government was committed to working within the existing legal framework governing borrowing.

They will be driven by a strong performance in the communications sector and broad-based growth in the agriculture, fishing and forestry sector.

Ling-Stuckey says in 2020, real non-resource growth is projected at 3.3 percent. This is the part of the economy that actually brings greatest benefit to our people.

“For too many years, the vital development budget kept losing out to uncontrolled increases in wages and goods and services expenditure,” stated the Treasurer, Ian Ling-Stuckey.

“One key element of budget repair is to spend the money we have much more wisely. For too many years, the development budget has been squeezed due to rapid increases in the operational budget which covers wages and goods and services expenditure. This was a major structural problem in the budget.