Treasurer needs support

By SAMUEL BARIASI
THE job of Treasurer Ian Ling-Stuckey is extremely difficult at the moment because instead of collecting revenue from tax, the Government is financing its budget by borrowing, an economist says.
PNG Institute of National Affairs director Paul Barker said the Government’s main revenue was generated through taxes and that would be difficult because most businesses in the private sector had laid off a good number of workers.
“The supplementary budget is going to be very challenging and the 2021 budget will again be challenging as well,” Barker said.
He said getting extra revenues from different sources would be difficult because most businesses were suffering.
“The Government now has to work really close with him – Ling-Stuckey and support him in what he needs to do,” Barker said.
“That means moving away from unrealistic notions and give enough opportunities to local businesses as much as possible.”
He said the recovery of PNG’s economy would depend on the Covid-19 situation globally.
Meanwhile, Barker said the logging industry could be run by Papua New Guinean businesses.
“Logging is low-tech and you do not need overseas companies to operate a chainsaw or to drive a jigger,” he said.
He said the Government also needed to be careful in negotiations in order to avoid chasing out investors.
“It is important to get a better deal with them but do not come in with nationalisation notions to the degree that you chase the investors out and then you are not going to get the revenue which you desperately need,” Barker said.