Government hailed for managing economy during trying times

TREASURY Secretary Dairi Vele has praised the Government on how it has managed the economy “through some of the most difficult times in our short history”.
He spoke on the state of the economy, last year’s budget performance and this year’s budget framework during a leaders’ summit in Port Moresby yesterday.
He said for two years in the past five years, the economy enjoyed one of the leading growth rates in the world.
“What you achieved from 2012 to 2016 is, on average, eight per cent growth.
“That is something very commendable.”
Vele said a recent International Monetary Fund report highlighted positives and risks in the PNG economy.
The positives are:

• Disciplined response to the revenue shortfall and tightening financing conditions through Supplementary Budget 2015 and 2106;
• 2017 Budget is prudent and helps lay the foundation for continued fiscal consolidation and debt sustainability;
• positive approach to revenue; and
• Potential resource projects and agricultural/tourism projects.

The risks are:

• Near-term growth is low from a lower revenue outlook;
•  reduce expenditure in the right areas so as to maintain growth momentum in the country;
• exchange Rate management;
• manage inflation; and,
• Manage debt programme.

Vele said while mining, oil and gas export values provided for much of the growth, these had dropped.
“We’re focusing on some of the non-resource areas,” he said.