Tax revenue higher: BPNG
Papua New Guinea’s total tax revenue for the March quarter 2019 was 5.8 percent higher than in 2018.
According to the Central Bank’s quarterly economic bulletin (QEB) released by Governor Loi Bakani yesterday, total tax revenue was slightly over K2million, 5.8 percent higher than in the corresponding period of 2018 and represents 19.1 percent of the 2019 budget.
The increase reflects higher personal tax from increase in salaries of public servants and company taxes. Mr Bakani in the QEB report, said preliminary estimates of the fiscal operations of the Government over the three months to March 2019 show a higher deficit of K1,212.6 million, compared to the deficit of K282.4 million in the corresponding period of 2018. This represents 1.4 percent of nominal GDP.
He said direct tax receipts totaled K1, 041.9 million (K1.9bn), 4.4 per cent higher than in the same period of 2018 and represents 15.8 per cent of the 2019 Budget.
While the total expenditure for the period was K3, 341.0 million (K3bn), 24.3 per cent higher than in the corresponding period of 2018 and represents 20.7 percent of the 2019 Budget.
He said as a result of these developments in revenue and expenditure, the government recorded a budget deficit of K1, 212.6 million (K1.6bn).
The deficit was financed mainly from domestic sources of K1, 166.9 million (K.9bn), and K45.7 million from external sources.
The net domestic financing comprised of K1, 979.8 million (K1.8bn) from other resident sectors, and K479.7 million from Other Financial Corporations, which more than offset net retirements of K1,024.7 million (K1.7bn) and K267.9 million by Bank of PNG and Other Depository Corporations, respectively.
The external financing was from concessional sources.
Governor Bakani in the bulletin says total public (Government) debt outstanding as at the end of March 2019 was K27, 566.3 million (K27.3bn), an increase of K1, 959.7 million (K1.7bn) from end of 2018, reflecting increases in both domestic and external debt levels during the quarter. Meanwhile, total Government deposits at depository corporations declined by K459.7 million to K3, 249.1 million (K3.1bn) at the end of March 2019, compared to the deposit level at the end of December 2018.
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