O’Neill govt left K4.6bil deficit

The National National

PAPUA New Guinea (PNG)’s estimated revenue this year is K13.022 billion and it is a shortfall of K1.244 billion set out in Budget 2019, Treasury Minister Ian Ling-Stuckey says.
“This is caused by major falls in taxes and an expenditure over-run by (Peter) O’Neill government’s out-of-control wages bill,” he said in a statement to mark his month-long in office.
Ling-Stuckey said the O’Neill government’s expenditure before cuts was K17.658 billion which was K1.525 billion more than Budget 2019’s estimate. “The actual budget deficit left by the O’Neill regime is K4.636 billion,” he said.
“This is the largest budget deficit in PNG’s history, representing 5.8 per cent of our economy.
“The next largest deficit of K3.579 billion was also by the O’Neill regime in Budget 2014.
“O’Neill’s gift to the nation is a budget deficit K1.059 billion. This is a shameful legacy.
“So, the facts have proven me right when I described Budget 2019 as a fake budget estimate in my response (after it was tabled in Parliament).” Ling-Stuckey said Budget 2019’s true estimates and statistics at K1.867 billion were revealed following a month-long due diligence exercise with the International Monetary Fund (IMF).
He said the updated Budget 2019 deficit was now K4.636 billion or 248 per cent higher (than when it was tabled in Parliament).
“If we divide the national deficit by PNG’s population of about nine million, it means every Papua New Guinean is in debt of K515 this year,” he said.
“We are, therefore, not living within our means. This is a huge economic hole left by the O’Neill regime, representing a legacy of fiscal irresponsibility.
“With the true public debt levels established, I will now start setting out the present Government’s fiscal solutions to be implemented.
“Getting out of this huge and irresponsible budget hole requires much more than a fake 100-day plan.
“There is no quick solution to the depth of problems created by eight year’s of O’Neill’s irresponsibility.
“But Papua New Guineans are strong and resilient. We are tough to withstand and overcome the bad times.
“We should be able to pick ourselves up and show the world that we can do even better.
“The most effective way is to recognise previous mistakes, learn from the mistakes, and start living within our means.”
Ling-Stuckey said next week’s Supplementary Budget would outline the Marape-Steven Government’s solutions and fiscal actions to heal PNG’s financial woes and economy.

4 comments

  • Thumps up Mr O’Neil.
    The basic fact any grassroot person can comprehend is the fact that any business to succeed or any progress that needs to be made comes with cost and sacrifice.Over the past 8 years one can see with his naked eyes the progress this country has made in terms of infrastructure, increase business activities, increase in salaries, increase in school age children educated and the list goes on. This is progress and the Treasurer is referring to of K4billion is the cost of this progress.A Defeciect is part of any governments financially activity. We can’t remain stagnant because we are scared to expand and cause a Defeciect.
    I still feel ONeil has done much for PNG. I sympathize with him that everytime this current government cant do what is expected of them, they shift blame to buy time in order find solution by going back to study the policies created by O’Neil.
    Let’s stop this idea of shifting blame and come up with something constructive. This government has assured the country that they have a solution.So what’s the solution??? shifting blame ??

  • Rex,

    It seems you fail to understand very basic economics (Am not an economist). Any entity (business, government, etc) must always operate within its means. PNG’s over K4 billion budget deficit is the result pf plain gross mismanagement. – it is more than a third of PNG’s annual budget. You fail to understand that the K4 billion deficit could see some essentials services like health, education, etc scaled down or unfunded. You also fail to understand that the cost of theses services may be shifted to the consumers, YOU & I – for instance, school fees. Rex, think deeper and sensibly

  • Thumps up Mr O’Neil.
    Your eight years of Premiership is tangible as far has history is concerned. Current government must try to set its own record than trying to point fingers.
    The question is what is your plan for changing the government? Prove to us that you can do better by going forward, instead of focusing too much on someones short-comings. Blame shifting is be display of immature leadership attribute.

  • O’Neil you have done extremely well for the last eight years in improving infrastructures in urban and in some rural areas which is a change for our nation. You have made it and it is an eye opener for others to follow. Only few other policies need to be reviewed and made changes in it so that it improves economy and make PNG a better nation.

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