Polye: 2014 deficit reduced to 5.8%

 THE Government has reduced next year’s fiscal deficit to 5.8% from this year’s 7.2%, Treasurer Don Polye says.

Polye said in a statement that he was happy to report that PNG had sound fiscal policies and with prudent management, had kept the debt level at a low level.

He said this after returning from the recent Asia Pacific Economic Cooperation (Apec) finance ministers’ meeting in Bali, Indonesia. 

 “PNG’s debt level is down to as low as 24% to 25% of GDP … the Government ensured that yearly fiscal deficit has not been uncontrollable and has legislation in place, which is the fiscal responsibility act that deals with containing an overall deficit to GDP ratio below 35% as at one stage we were at 75%-80% GDP,” Polye said.  

“The recent budget strategy paper I released maintains all those parameters. We have made sure budget strategy paper for 2014 and the next medium-term allows a deficit annually of 2.5% and below … compared with this year, we have allowed a 7.2% of deficit but now in the medium-term we say that it must come down to 2.5% and below until we arrive at 2018-19 when we return to a balanced budget.”