Budget lowers State revenue, expediture

THE Government’s revenue and expenditure were lower than budgeted for last year, according to the Bank of Papua New Guinea.
Governor Loi Bakani said this in the quarterly economic bulletin for September last year.
“In regards to the fiscal operations of the National Government, both revenue and expenditure have been lower than budgeted for 2016, with the decline in revenue more substantial due to low commodity prices and low tax collections,” Bakani said.
“The Government is commended for its timely action in introducing a supplementary budget in August 2016 to address the budgetary situation and tighten up on expenditure,” he said in a statement.
“The planned external financing through a debut sovereign bond of US$500 million (K1.56 billion) did not eventuate while only the first tranche (US$200 million (K625 million)) of the Credit Suisse loan was obtained, with the balance of US$300 million (K937.5 million) expected in January 2017.
“Because of the limited external financing of the budget deficit, most of the financing was through the issuance of Government securities.
“The market appetite for these securities was limited, especially in the second half of the year.
“Therefore, the Central Bank had to assist the Government by picking up some of the under-subscriptions at the auctions.
“For monetary policy purpose and to promote the development of the secondary market for Government securities, the Bank of Papua New Guinea plans to on-sell these securities through the TAP facility, starting in January and February.”
Bakani urged all revenue raising Government agencies to improve on their efforts in revenue collections this year.
He also stressed that Government departments and agencies to live within their means while maintaining critical services for the public.