Reckless borrowing, spending forced funding cut: Undialu
By REBECCA KUKU
RECKLESS borrowing and spending on inflated contracts by the previous government has forced the Government to slash funding for important programmes, says Hela Governor Philip Undialu.
He said the planned funding cuts to the provincial service improvement programme (PSIP) and district service improvement programme (DSIP) as announced by Prime Minister James Marape to fund the supplementary budget were inevitable.
Undialu said the previous government, led by Peter O’Neill, had doctored facts about the economy, debt-to-Gross Domestic Product ratio and the economy.
“Under former prime minister Peter O’Neill’s leadership, the country incurred a total debt of up to K27 billion and an additional K6 billion for the SOEs (State-owned entities),” he said.
“Our debt to GDP ratio is over 37 per cent now.
“That’s why this government has to do some cuts.
“That’s being responsible.”
Jiwaka Governor Dr William Tongamp said the country was in a serious financial situation and he was willing to accept a 20 per cent cut to his PSIP funds.
He said cuts should also be made in all public sectors.
Gulf Governor Chris Haiveta said he welcomed a 20 per cent cut to his PSIP and would make adjustments to the province’s budget.
Dei MP Westley Nukunj said DSIP funds were policy development funds and not constitutional funds. “If the Government wanted to cut it to fund a supplementary budget, then let it do so.”
Moresby South MP Justin Tkatchenko said DSIP funds went a long way in transforming his electorate and without it his people would suffer.
“However, we all have to make the sacrifice and work together to assist the country’s financial struggles and issues.”
3 comments
In my opinion, I think every country in the world borrow huge amount of money to Budget and develop their countries. I don’t see any wrong in borrowing, it is similar like any ordernary people borrow or loan money to run their business and repay the loan slowly. In doing this, it help the families to sustain their living and also repay loan. If the budget is cut, millions of PNG people in rural areas will supper. Why the government want to cut the country,s budget.? We are afraid, the free education too might abolish by Marape government.
@ Andy, you are right but when the revenue is low, you cannot keep borrowing. International governments borrow to boost their economy by funding on fruitful projects that would generate profit, not to fund events and on unpredictable projects.
Current PM is doing right by doing micro-management.
My view is there is nothing wrong about borrowing. We need money to survive. Cutting funds will generally hurt the rural population. This government will kill the much needed goods and service that are needed in district and local level governments. If they take away free education then most children will be affected. The rate of literacy will drop and education will segregate people. Those who have money will be able to pay while others who do not will be left behind by the constantly changing world.
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