Govt must reduce excess spending

 THE O’Neill Government should know very well about the economic indicators of this country.

PNG is one of the highest taxing countries with a very high public expenditure.

Based on these facts, the fiscal austerity is not to do with bringing in FDIs to plug domestic savings gap or increase tax. 

It is basically related to discrepancies within fiscal management, especially public spending and resource tax.

High public expenditure and government debt should be curtailed immediately.

The government should cease excessive expenditure because these are adding to our financial burden.

Furthermore, the government should be mindful of its approach towards resource developers. These developers bring in contract terms and conditions which are technically complex. 

Thus, the Government has lost millions of kina in terms of lost import tariffs on procurement of parts and supplies.

Finally, the Government should diversify its asset portfolios and not just focus on one particular sector, such as mining and petroleum.

Moreover, it should not put all its eggs in one basket by pinning all its hopes on the development of more liquefied natural gas (LNG) projects. This mad rush for LNG will result in a lop-sided growth.

Successive governments have failed to do this and as a result, agriculture output has fallen and this has resulted in an unbalanced growth.

Mike H, Via email