Budget to grow economy, support delivery of general election, says PM

PRIME Minister James Marape says the Budget 2022 will help Papua New Guinea to recover economically as well as support the delivery of the general election next year.
“The total budget of K22.175 billion is 9.3 per cent higher than the 2021 supplementary budget in the back of K16.190 billion revenue which is 18.4 per cent higher than the 2021 supplementary budget,” he said.
“The fiscal deficit for 2022 is K5.89 billion, which is 5.9 per cent of the 2022 Gross Domestic Product (GDP). Compare this deficit to K6.6 billion or 7 per cent of GDP in 2021.
“PNG’s economy is projected to grow by 5.4 per cent, from K93 billion in 2021 to K102 billion next year.
“The budget will continue to repair for the economic recovery, with strong focus on non-resource sector growth and at the same time support families and businesses.
“There will be increased development and capital funding for high priority programmes and sufficient funding for key social sectors to stimulate economic growth.
“The delivery of the budget shows clearly the work that we have been doing.
“It points to the fact that our path to economic recovery is correct and with critical analysis by all multilateral budget partners like Asian Development Bank, International Monetary Fund and World Bank, our positive trajectories show an increase in GDP for next year and beyond as well as a declining budget deficit trend.
“With hangovers and effects of a slowed economy due to the Coronavirus (Covid-19), we have used the last three years of Budgets to ensure our domestic economy is functional and alive, and our crucial services are maintained,” he added.
“Budget 2022 embraces our national outcomes including opening up all parts of our country; intervening in sustainable economy; starting up Porgera, Papua LNG and Wafi-Golpu for our economy; paying for our children’s education in 2022 and beyond; building new hospitals; ramping up support to Bougainville; clearing up projects like the new Supreme Court Building and ensuring the General Election 2022 is fully funded.
“All the above we are doing whilst maintaining strict discipline in sticking to our money plan, with our development partners observing our discipline to reforms.
“Key in our reforms is to borrow low-cost US dollar denominated borrowings like the Australian $400 million and the Japanese Government’s US$280million 0.01 per cent five-year grace period lending, which all came directly into our economy by way of Budget support.
“I just want to assure our people and our economic stake holders that we are going through tough times, but we will use the Budget policies wisely to share the load of burden and also ensure key infrastructure like the 1,900km of road we built the last two years in rural PNG through our flagship ‘Connect PNG’ programme,”he added.