Grim outlook forecast
FORMER prime minister Peter O’Neill says the intended supplementary budget and amendments to the Fiscal Responsibility and Central Banking Acts are bound to cause long-lasting damage to the economy and the well-being of people.
He said the process of developing the supplementary budget was in disarray with Cabinet rejecting the first proposed budget that was prepared by Treasurer Ian Ling-Stuckey and his foreign advisers, and done without consultation with relevant PNG government agencies or the business community.
“Now it has been revealed that the Government intends to once again increase the legal debt to GDP ratio to reach 60 per cent, and undermine the independence of the Central Bank and increase debt by simply printing additional money that will drive up inflation on consumer goods,” he said in a statement.
O’Neill said the desperation of Prime Minister James Marape had hit a new low as he tried to destroy the independence of the Bank of Papua New Guinea so he could access quick money to fill almost a K3 billion revenue hole that was mostly of the Government’s creation.
“Their (government) intention to increase debt to GDP to 60 per cent, from the 35 per cent limit when they came to office, will mean they will borrow billions more this year, and every toea of this new debt will have to be repaid by future generations, O’Neill said.
“Previous governments have weathered economic shocks, first by living within their means and properly managing debt and stimulating the economy to generate investment and State revenue.
“Very importantly, the fundamentals of the economy remained solid because previous governments respected the independence of government institutions and legal safeguards.”
10 comments
Borrowing necessitated by previous borrowings!!
We are caught in this vicious cycle of borrowing that started a few years ago….we forget for convenience!!
GOLANI HULUPO…nana itune!
Jesus! I am simply appalled at how hypocritical our leaders are. All they are good at doing is playing the blame game. It’s easier and convenient for the façade which is their political competence. Now O’Neil is complaining about Marape doing exactly the same thing he did while he was PM. Borrowing and inundating us with more debts! for Christ’s sake can we have a decent leader that has at least an ounce of integrity and competence.
That DEBT HOLE was widened by WHO???
Please be honest and let your wisdom guide you and not your emotion. PNG was and is developed from Borrowed money and it has now become a norm for survival…..
Well its not wrong for the opposition members to point out some issues that the government a not following the right way to go about but remember you leaders dont point fingers to PMJM or ILS cause you PO you onces sit in the chair of PM and did the same thing and now eye blo you open nau na you can lukim pekpek lo eye blo ol na yu laik toktok na point fingers please yu stop
Dear Three Niner, Never ever use the Name of our Lord in your comment. The Name of the Lord is Holy and Highly Exalted. Its the salvation Name please don’t use it in vain. Acts 4:12.
Full support to all commends. O Neil is crying over spilled milk over his own doing. He borrowed beyond what this country could affort and created a big hole that this government is trying to patch. Oneil just pasim maus na support the inititives taken by PMJM and ILS (Treasurer).
Lonlong hapkas save tok olsem tasol… Great liar and a cheat who created this massive economic hole rightly pointed out by treasurer lingstucky
People who live in glass houses should not throw stones.
PO created a big economic mess. Now he can fully see where he has taken us to when he had the chance to correct the economic crisis he created and inherited by PMJM.
We are good at blaming each other. Thankswe must borrow to develop Png as other states are doing around the world. We are narrow minded and full of jealousy as black race in the world. I borrowed money to expand my trade stores and pmv bus business. Apply that to a Stata government it needs to borrow money to build infrastructures and needs of the country. Other states of the world are doing this but PNG a black richest Christian nation must do that! Be positive and look out of the box and beyond all citizens.
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