Bakani: Govt has debt of K17.2b

 By Gedion Timothy Lapan 

THE total Government debt up to the June 2015 quarter stands at K17.2 billion –  K1.8 billion higher when compared to the December 2014 quarter, according to the Bank of Papua New Guinea.

Governor Loi Bakani, pictured, in the bank’s Economic Bulletin for the June quarter, said the increase in debt was due to the Government’s funding of a deficit of K942 million in the first six months of 2015 through external and internal sources.

“The budget deficit of K942 million was financed from net external sources of K121.6 million and domestic financing of K820.4 million,” he said.

“External loan financing comprised  K143.9 million from concessional sources, which more than offset repayment of K22.3 million to extraordinary sources. Total revenue, including foreign grants, during the June quarter of 2015 was K4,434.9 million – 6.1 per cent lower than in the corresponding period of 2014. 

“This represents 31.8 per cent of the budgeted revenue for 2015.”

He said the decrease in revenue mainly reflected lower direct and indirect tax receipts, more than offsetting increases in non-tax receipts and foreign grant inflows.

“Total expenditure over the six months to June 2015 was K5, 376.9 million – 1.7 per cent higher than in the corresponding period of 2014 and represents 33.2 percent of the budgeted appropriation for 2015.”

He said the outcome reflected higher recurrent and development expenditures, especially on the 2015 Pacific Games sporting facilities and major road infrastructure projects.