PM describes budget as ‘hard’

PRIME Minister James Marape has described the 2020 Budget as “hard”, in view of the current economic climate.
Marape said the K4.6 billion deficit, projected to be the largest ever, “is not something we should be fearful about”.
“This is so long that, as custodians of the budget, what we plan to implement is geared towards resuscitating the economy,” he said.
“What we borrow must come in to resuscitate the economy.”
Treasurer Ian Ling-Stuckey tabled the 2020 money plan in Parliament last Thursday, forecasting a total expenditure of around K18.7 billion against a revenue of K14.1 billion.
“It’s a hard budget in view of the fact that our revenue environment was not certain,” Marape said.
“Some of our big-ticket projects like Wafi-Golpu mine, Porgera mine, P’nyang and Papua LNG projects are still in discussion stage.
“Revenue is not certain. But I am comforted that Treasury was able to model next year’s budget, and for the next three to four years, out of our own sweat component – sweat meaning what we invest in.
“We are using this budget as a tool to restimulate and diversify our economy.”
Marape said the US$330 million (K1billion) loan from Australia was incorporated in the plan.
“The Treasury will look at better financing options in the market to ensure that our deficit is totally financed,” he said.
“We tried our best to be balanced and as fair as possible, right across the country.
“So, overall, the budget is not bad but it’s going to be a hard year. We have to stick to the core fundamentals, be conservative.
“This is all to ensure that we get back on the right track by 2025, by which time, we should be cascading back to a lower deficit. We should have a lower debt-to-GDP ratio by the mid-2020s.”
Marape said the K14 billion revenue would be the “highest ever” for the country.
“That’s a strong indication of our own commitment to work hard next year at all levels.
“That’s why we’re sharing the burden right across all parts of our country.”