The National, Thursday January 7th, 2016
THE Bank of Papua New Guinea says the preliminary estimates of the fiscal operations of the Government during the September quarter last year showed an overall deficit of K1.9 billion.
This compares to a deficit of K1.5 billion in 2014, representing almost four per cent of nominal Gross Domestic Product, reflecting a high expenditure.
Bank Governor Loi Bakani says the budget deficit of K1.9b was financed from domestic sources totalling K2b.
He said external loan repayments comprised K114 million and K21m from concessional and extra ordinary sources, respectively.
Bakani said the domestic financing comprised net holdings of Government securities totalling K438 million by the Central Bank, K532 million by the ODCs (Other Depositary Corporations), K489 million by OFCs (Other Financial Corporations) and K200 million by public non-financial corporations
This was combined with K414 million in cheques yet to be settled.
Bakani said the total tax revenue in the quarter amounted to K6.2 billion, representing about 62 per cent of the revised budgeted amount for 2015.
Direct tax receipts totalled K3.9 billion, which was a per cent lower than the receipts collected during the corresponding period in 2014.
“And it represented 60 per cent of the revised budgeted amount.”