Papua New Guinea Budget 2021 has been saved
Papua New Guinea Budget 2021
Consolidation for Growth
This budget seeks to consolidate actions to get PNG back on a growth track.
Earning the right to grow again
With a theme of “Consolidation for Growth”, the focus of the 2021 Budget is to consolidate the country’s economic and budget position and move back to a growth path with a view of rebuilding living standards for Papua New Guineans.
It is intended this will be achieved through:
- borrowing to meet the budget deficit of PGK6.6 billion;
- growing the non-resource sector;
- gaining a larger share of resource projects; and
- reforming State-owned enterprises and the public sector.
The Marape Government has indicated its intent to continue supporting key capital programs such as Connect PNG, Micro Productivity Improvement Programs (PIP) for rural infrastructure and Special Intervention Programs that aim to reduce the cost of doing business, and to connect and expand the economic corridors to stimulate economic growth while boosting income generating opportunities in rural areas.
The 2021 Budget will also see increased expenditure to stimulate sectors, including agriculture, tourism and SMEs – those most affected by the COVID-19 pandemic. We see this as important given these sectors support 85% of the PNG population. Other expenditure priorities will be allocated to the health, education, and law and justice sectors, together with a focus on payment of arrears to business, and the retirement of public servants.
Published: November 2020