BPNG notes rise in total domestic credit

Total domestic credit extended by financial corporations to private sector, public non-financial corporations and provincial and local level governments increased by K440.2 million to K17,653.6 million.
Bank of PNG Governor Loi Bakani, in its Sept Quarter 2018 Economic Bulletin, said that this compared to an increase of K246.6 million in the previous quarter.
“This was accounted for by an increase of K405.6 million of credit extended to the private sector and K34.6 million to the public non-financial corporations,” he said.
“The increase in credit to the private sector was broad-based, with the increase reflecting activities associated with the hosting of the Apec events in 2018.”
Preliminary estimates of the fiscal operations of the National Government for the nine months to last September show a deficit of K1006.5 million, compared to the deficit of K894.6 million for the corresponding nine months of 2017.
“This represents 1.2 per cent of nominal gross domestic product (GDP),” Bakani said.
“Total tax revenue for the nine months to September was K7363.3 million, 17.3 per cent higher than in the corresponding period of 2017 and represents 76.4 per cent of the 2018 budgeted amount.”
Bakani said direct tax receipts totalled K4574.4 million, 16.9 per cent higher than in the corresponding period of 2017 and represented 78.1 per cent of the 2018 budgeted tax revenue.
“The increase reflected higher mining and petroleum taxes and other direct taxes,” he said.
“The deficit of K1006.5 million was mainly financed from domestic sources of K2039.4 million while there was a net repayment of K1032.9 million to external sources.
“Total public (Government) debt outstanding as at the end of September 2018 was K26,904.6 million, an increase of K2,533.4 million from June 2018.
“Total Government deposits at depository corporations increased by K430 million to K2906.6 million at the end of September 2018, from the level at the end June 2018.
“The increase reflected tax revenue and drawdowns of external loans.”