PM: Why we borrow

By GYNNIE KERO
THE Government needs to borrow to stay afloat now, but expects things to turn around in 2022 when revenue from the PNG LNG project starts flowing in, says Prime Minister Peter O’Neill.
“Many times we ask why the Government is borrowing money,” he said.
“The Government doesn’t have money. The country isn’t making enough money. Our budget is about K11 billion but our demand for services and needs is between K20 billion and K30 billion.”
“In 2022, we will have repaid all our debts from the PNG LNG project and revenue will start flowing into the country.”
He was addressing people in Vanimo, West Sepik, last Thursday during the ground-breaking ceremony for the K35.95 million airport development project.
He said “many smart people” criticised the Government but did not offer solution on how to fund the needs. “We spend about K700 million a year on TFF (tuition fee-free subsidy),” he said.
“Public servants are paid K5 billion every year. That’s why we face challenges.”
He said the population was increasing “at a very fast rate, almost 3 per cent a year”.
“That is why we need to build infrastructure to enable service delivery and give us opportunity to develop our economy,” O’Neill said.
Politics is a hindrance to such development,” he said.
He toured Eastern Highlands, Madang, East Sepik and West Sepik to set in motion various multi-million kina projects.
He was disappointed with what he saw at the border post with Indonesia.
“I visited Wutung (border post), and I’m very disappointed. Millions of kina have been spent there but the facility isn’t operational,” he said.
“Many people have been lying to us. We in Government will take responsibility.”
He plans to send “a big team” to West Sepik to attend to some of the problems.
“I will come back before the end of this year to ensure these things are done,” he said.
“We want Vanimo airport to be another gateway to our country. Not only Port Moresby.
“That is why we want to make sure Wutung must work.
“The road between here and Wutung needs six bridges. They must fix it.
“Government has allocatedK5 million to fix the design work to build the road to connect Watarais to Wutung.
“We have a market in Indonesia with a 250 million population. There is a huge potential.
“We have to sell our goods and services to them.
“Their door is open to us (and) we have to make use (of it).”