Government spending driving growth: MP

THE 2020 Budget has the largest deficit in Papua New Guinea’s history of K4.6 billion, says Treasurer Ian Ling-Stuckey.
He said while maintaining what was acknowledged as a fundamental move back towards sustainable budgeting and a fiscal consolidation strategy, one of the drivers of economic growth in the non-resources sector was the increase in government spending.
However, he said the Government would take this problem and turn it into an opportunity to stimulate growth.
“First there is over a billion kina allocated to clear outstanding arrears,” Ling-Stuckey said.
“This is good for business confidence as PNG Power will finally be paid and thereby help reduce the on-going blackouts.
“Contracts entered in good faith and without political manipulation will be paid after going through a verification process.”