Compensation to civil servants rise

The National Business

COMPENSATION paid to civil servants rose by nearly 19 per cent last year, from K4376 million in 2017 to K5198, according to the Asian Development Bank.
The increase of K822 million, or 18.8 per cent, was caused mainly by the 3 per cent pay rise given to teachers and health workers and the hiring of new employees.
This is a challenge for the government, said the bank’s country economist, Edward Faber, yesterday during the release of ADB’s 2019 outlook report in Port Moresby. Other government expenditures last year included:

  • Use of goods and services rose from K4138 million in 2017 to K4879 million last year;
  • grants to local governments increased from K1207 million in 2017 to K1550 million last year; and
  • Interest rose from K1525 million in 2017 to K1853 million last year.

“Capital expenditure in 2018 was K2041 million from K1491 million in 2017, that is an increase of 36 per cent and that is key for helping to grow the economy,” Faber said. “I think when it comes to talking about these expenditures it is also important to realise that a lot of those increases relate to productive expenditure in terms of new projects, new infrastructure and that helps with growth.”