K1.2bil to pay off debts

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THE Government has allocated K1.2 billion to pay off what it owes businesses as a way to support the economy, Treasurer Ian Ling-Stuckey says.
“We are paying off arrears which businesses are saying is the best way to support the economy,” he said.
“The arrears payments in 2021 are expected to be K1.2 billion. The simplest way to reduce the deficit is to pay businesses money that the Government owes.”
He said the 2021 budget would focus on continued funding for the Covid-19 pandemic.
He told Parliament yesterday that the people and health service work must be assured that funding was forthcoming.
Total expenditure is forecast to be K19.6 billion which is an increase of 9 per cent from the K17.9 million in the 2020 supplementary budget.
“Although there is a large increase in expenditure, this must be seen in the context of very responsible policies. We are responding to the Covid-19 pandemic,” he said.
“Within the expenditure budget we continue to give priority to health, education law and justice.
“In the 2021 budget, this will grow by K1 billion from the 2020 supplementary budget.
“This provides enormous possibilities to fund our Connect PNG initiative which has been allocated K300 million.”
Total revenue is around K13 billion – an increase of K1 billion or 14.4 per cent from the 2020 Supplementary Budget.
The deficit therefore is K6.6bil.
“This is substantially smaller by K750 million relative to our budget situation once our revenues collapsed due to the Covid-19.
“This budget deficit will continue to decline, with a reduction in the deficit of another K1.3bil in 2022.
“PNG’s debt to GDP level is expected to fall in 2021 from the peak of 53.2 per cent in 2020 down to 53.1 per cent,” Ling-Stuckey said.


  • Thanks Treasurer Ian Ling-Stuckey, it is a good head way going forward, settle our internal debt and pump more money into our SME’s to create more jobs …that’s what the country needs right now more jobs..

  • Can someone give us an update on the countries debt? That is, how much do we owe in loans currently?

  • A step in the right direction to assist reduce our debts inherited from the past.Borrowing is part and partial of running our affairs as a nation.However it must be done in a responsible manner whereby it stimulates economic activities so those activities will assist pay the debts.

    Thank you Mr Ling Stuckey.Its not easy to win the confidence of the foreign lenders given our tainted credibility .

  • Very excellent focus on SME and TVET these two are the alternate backbone for empowering economy and supplement in reducing fatty crime and law and order problems.

  • More focus on business is the way to grow our economy through local SMES. Government is on the right path to recover the country’s crippling economy.

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