International monetary fund team visits PNG on government request

National

A technical assistance mission from the International Monetary Fund fiscal affairs department visited Papua New Guinea recently to advise on tax policy reform following a request from the government.
The mission provided an input into the formulation of a revenue stabilisation framework as part of the government’s medium-term fiscal strategy.
In closing out the mission, the review team presented its report to Deputy Prime Minister and Treasurer Charles Abel.
“This report shall inform and contribute to the 100-day plan to kick-start the Alotau Accord 2, and provides several suggested measures for the 2018 Budget
which we will now consider,” Abel said.
“This work supports the development of informed and balanced medium-term revenue and debt strategies which will underpin our medium-term fiscal strategy.
“Increasing confidence and managing our economy upwards requires simplifying and modernising our tax system.
This report adds value to work on achieving this. It also highlights possible areas for technical assistance and capacity building.”
Team leader Thomas Baunsgaard said the International Monetary Fund was supportive and pleased with the government’s 25-point
plan.
“It was very positive to see the government taking the bold, yet necessary steps to ensure sound macroeconomic and fiscal management, noting that it was both possible and important to make use of hard times to make sound
structural improvements”, Baunsgaard said.

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