The National, Thursday December 10th, 2015
PAPUA New Guinea’s decision to adjust its fiscal policy in 2016 has to be executed efficiently to soften the impact of slower growth, according to the Asian Development Bank.
ADB’s Papua New Guinea resident mission country economist Yurendra Basnett said the country had to ensure that expenditures were accompanied by appropriate plans and strategies so that they were effective in delivering outcomes.
He said while the decision made by the Government was a realistic response to the fall in global commodity prices, there must be an efficient and effective execution of the budget.
Basnett was speaking during an ADB-hosted event that gave an analysis of the 2016 PNG budget and a review of the bank’s operations in 2015.
He said achieving development objectives was vital.
“The quality of expenditure is quite important, delivery of results is important and monitoring what has been achieved and evaluating it to make sure the development objectives and agendas for the country is being delivered and achieved,” Basnett said.
“2016 will be a period of slow growth and only a structured way out is the Government’s fiscal policy.
“How quickly and how effectively you can get the funds out will determine, will soften some of the impacts of the slowdown in the growth in terms of employment and the delivery of basic services.”
Basnett said the 2016 budget was exposed to risks which include the continuation of low commodity prices
He said any adjustment on the budget needed to be continuous into the New Year and that the low price environment should be monitored and changes made.