2013 Papua New Guinea Budget has been saved
2013 Papua New Guinea Budget
Facts, Figures and Key Takeaways
The 2013 Budget is a major change in policy. It is a deficit budget with a shortfall of 7.2% of GDP (K2,548.9 mill). As the LNG Project nears completion the population is increasingly discontent with service delivery. Government plans to use its strong economic position to attack development issues.
The 2013 Budget projects total revenue of K10,481.9 million, the highest on record and an increase of K324 million or 3.2% over the revised 2012 estimate.
In a major departure from policy in recent years, it will be a deficit budget showing a shortfall against revenue of 7.2% of GDP (K2,548.9 million deficit). The lion’s share of the deficit will be from domestic borrowings (K2,230.0 million).
Government expects to run continuous deficits for several years before it returns to a surplus in 2017. Government stressed that these borrowings are considered sustainable by the International Monetary Fund and World Bank.
There are three major thrusts underlying the deficit:
- To greatly increase expenditure on Medium Term Development Enablers (Health, Education, Law and Order and Land), funding for these sectors will increase by 50.9% from 2012.
- A major commitment to “Nation Building” infrastructure with K12.1 billion committed over the next five years.
- A substantial 87% increase in funding to sub-national levels of government.