2017 Papua New Guinea Budget has been saved
2017 Papua New Guinea Budget
Facts, figures and key takeaways
The 2017 Budget is the last National Budget before the 2017 National Elections. The Budget has been set in a challenging global and local environment and in what will also be a challenging year for the sitting Government. Despite this, the temptation to spend in an election year has been largely resisted and the need for fiscal discipline has been recognised. This shapes the tone for the Budget, whose theme is “Responsible Fiscal Consolidation for Future Growth and Development”.
While the Government remains committed to its key focus areas of health, education, law and order and transport, each of these areas will receive less funding in 2017 than in 2016. Two sectors that are notable exceptions to funding cuts are Provinces and Administration. The latter contains the budget for the 2017 National Election and the 2018 APEC summit.
Despite the 2017 Budget being the last of the current Government’s term, it is probably the most difficult it has faced. The reduction of revenue streams means the Government sectors will need to do more with less, and much of the success of the current budget will come down to how well structural and operational reforms are implemented and adhered to in the lead up to the next election.