Budget aims to aid people, boost economy: Report

The National Business

The focus of the 2021 Budget is to consolidate the country’s economic and budget position and return to a growth path to rebuild living standards, according to Deloitte.
Its report breaking down the budget passed last week will be achieved through:

  • borrowing to meet the budget deficit of K6.6 billion;
  • growing the non-resource sector;
  • gaining a larger share of resource projects; and,
  • reforming State-owned enterprises and the public sector.

“The Government indicated its intent to continue supporting key capital programmes such as connect PNG, micro productivity improvement programmes for rural infrastructure and special intervention programmes to reduce the cost of doing business.
“It indicated to connect and expand the economic corridors to stimulate economic growth while boosting income generating opportunities in rural areas.
“The 2021 Budget will also see increased expenditure to stimulate sectors, including agriculture, tourism and small to medium enterprises, those most affected by the Covid-19 pandemic.
“We see this as important given these sectors support 85 per cent of the PNG population.
“Other expenditure priorities will be allocated to the health, education, and law and justice sectors, together with a focus on payment of arrears to businesses and the retirement of public servants.
“This budget is being delivered during a period of heightened uncertainty, both from domestic parliamentary instability and the global pandemic.
“Assumptions are based around anticipated growth at both the global and domestic level, which may not materialise to the forecast extent or timeframes, thereby resulting in lower than anticipated revenues, private sector demand and budget financing limits.”