Govt posts surplus of K302.2mil

THE National Government posted an overall budget surplus of K302.2 million in the first six months of this year, down K2.2 million or 0.7%, from K304.4 million during same period last year.
The surplus for the period represented 1.4% of nominal gross domestic product (GDP).
Total expenditure over the six months to June was K2,324.5 million, up 5.8% from same period last year. The amount represented 34.8% of budgeted expenditure for this year.
There was also higher recurrent and development expenditures.
The total revenue including foreign grants was K2,626.7 million, 5.4% higher than receipts collected in same period last year. This represented 39.4% of the budgeted revenue for this year.
Bank of PNG (BPNG) Governor Sir Wilson Kamit, in the June quarter report, said the surplus was used to make net external loan repayments of K86.3 million and net negative financing to domestic sources of K276.7 million.
He said the net overseas loan repayments comprised K59.2 million, K9.1 million and K18 million to concessionary, commercial and extraordinary sources, respectively.
 “The net domestic financing comprised of K276.7 million in cheque floats presented for settlement, which more than offset K60.8 million in net drawdown of Government deposits held at the Central Bank,” Sir Wilson said.
He said the average level of broad money supply increased by 4.1% in June quarter, compared to an increase of 2.3% in the March quarter.
The outcome was mainly due to an increase of 8.1% in average net foreign assets of depository corporations and an increase of 3.6% in average net private sector credit, which more than offset a decline of 60.2% in average net claims on the Central Government.
“Net domestic claims outstanding, excluding advances to the Central Government and outstanding loans under the Government’s agricultural export commodity price support
scheme increased by 2.9% in the second quarter compared to increase of 5.3% in the first quarter,” Sir Wilson said.
During second quarter, total domestic credit extended by depository corporations to the private sector, public non-financial corporations, provincial and local governments, and other financial corporations, increased by K229.6 million to K6 billion, compared to K222.4 million in the first quarter.
 “This was mainly due to an increase of K224.7 million in private sector credit and K7.3 million in claims on public non-financial corporations,” he said.