PM Marape welcomes K22 billion Budget

by PNG Business News - November 26, 2021

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Photo credit: PM James Marape News Page - Treasurer Ling-Stuckey tabling the 2022 Budget

Prime Minister Hon. James Marape has welcomed the tabling of the record K22.175 billion 2022 Budget by Treasurer Ian Ling-Stuckey in Parliament.

He said it would help Papua New Guinea on the path to economic recovery as well as support successful delivery of the 2022 National General Election.

“The total Budget of K22.175 billion is 9.3 per cent higher than the 2021 Supplementary Budget, with a revenue envelope of K16.190 billion which is 18.4 per cent higher than the 2021 Supplementary Budget,” PM Marape said.

“The fiscal deficit for 2022 is K5.895 billion, which is 5.9 per cent of the 2022 Gross Domestic Product (GDP). Compare this deficit to K6. 6 billion or 7 per cent of GDP in 2021.

“In 2022, the PNG economy is projected to grow strongly by 5.4 per cent, from K93 billion in 2021` to K102 billion.

“The 2022 Budget will continue the budget repair and economic recovery path, with strong focus on non-resource sector growth, and at the same time support families and businesses.

“There will be increased development and capital funding to high priority programmes and sufficient funding for key social sectors to stimulate economic growth.

“The delivery of my Government’s third Budget today, despite the many challenges and obstacles, shows clearly the work that we have been doing.

“It points to the fact that our path to economic recovery is correct, and with critical analysis by all multilateral Budget partners like Asian Development Bank, International Monetary Fund and World Bank, our positive trajectories show an increase in GDP for next year and beyond as well as a declining budget deficit trend.

“The handing down of the Budget is the single most-important parliamentary occasion of any government.

“With hangovers and effects of a slowed economy due to COVID-19, your Government has used the last three years of National Budget to ensure our domestic economy was functional and alive, and our crucial services were maintained.

“I want to assure our people and all stakeholders in our economy that we are responsible and prudent to ensure expected outcomes of our Budget are achieved.”

PM Marape said since his Government took office in May 2019, it had used the Budget to support schools, hospitals, COVID-19 programmes, road construction, SME funds, retiring old debts and contractual obligations, paying outstanding industrial awards, and many others.

“Our 2022 Budget embraces our national outcomes including opening up all parts of our country; intervening in sustainable economy; starting up Porgera, Papua LNG and Wafi-Golpu for our economy; paying for our children’s education in 2022 and beyond; building new hospitals; ramping up support to Bougainville; clearing up projects like new Supreme Court Building and ensuring the 2022 General Election is fully funded,” he said.

“All the above we are doing whilst maintaining strict discipline in sticking to our money plan, with our development partners observing our discipline to reforms.

“Key in our reforms is to borrow low-cost US dollar denominated borrowings like the Australian $400-million dollar and the Japanese Government US$280million 0.01 per cent five-year grace period lending, which all came directly into our economy by way of Budget support.

“I just want to assure our people and our economic stake holders that we are going through tough times, but we will use the Budget policies wisely to share the load of burden and also ensure key infrastructure like the 1900 kilometres of road we built the last two years all over rural PNG through our flagship ‘Connect PNG’ programme are continued.”

 

Article courtesy of PM James Marape News Page



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