Use stimulus package wisely

WHAT is a stimulus package?
A stimulus package, according to Investopedia, is a package of tax rebates and incentives used by governments to stimulate economies and save their country from a financial crisis.
It is a coordinated effort to increase government spending on the economic sector and lower taxes and interest rates to stimulate an economy and lift it out of a recession.
However, in the case of Papua New Guinea, that is quite the contrary.
An increased borrowing of K5.2 billion in just 18 months is spent almost entirely on the social sector or the non-income generating sector with no foreseeable economic return.
This is the very reason why the PNG economy is sliding into a further recession triggering inflation and the worst ever unemployment rate.
There is no foreign exchange, the value of the kina is declining and gross domestic product (GDP) is down by 2 per cent and is expected to go down further by another 5 per cent next year, according to the Bank of PNG’s forecast.
The outlook of the resource sector isn’t promising.
Pasca gas agreement was deferred indefinitely and as a result, Twinza is standing down.
The same is happening to Wafi-Golpu and the recent agreement signed with Porgera mine is still months away from start.
The economy has been totally mismanaged by Prime Minister James Marape’s Treasurer Ian Ling-Stuckey.
A better economic stimulus package with a new government willing to increase government spending on key areas can compensate for decreased private spending

David Lepi