2014 Papua New Guinea Budget
Facts, Figures and Key Takeaways
The 2014 Budget is a substantial deficit budget where Government revenue is substantially supplemented by concessional funding. It continues the major thrusts unveiled in 2012 which comprise an increase in funding for health and education and a major commitment to “nation building” infrastructure.
The 2014 Budget is set against assumptions of a modest upturn in global economic activity in 2014 as compared to 2013.
The 2014 Budget focuses on 7 key priorities:-
- Maintain PNG’s macroeconomic stability through adherence to its Medium Term Fiscal Strategy
- Implement major infrastructure projects and ensure efficiency in the higher levels of Provincial Government spending
- Ensure alignment between the construction of new roads and the funding required to maintain them and have similar alignment in other capital expenditure areas such as health or education
- Continue to expand health and education spending
- Establishment of a Sovereign Wealth Fund and the consolidation of mineral and petroleum assets
- Strengthen law and order
- Improve the business environment for the agriculture sector and small and medium business enterprises.
To promote sustained growth, the Government will continue to pursue a national reform agenda. It plans major reviews of the taxation system and financial services sector, to prioritize competition policy and reconsider the business regulatory environment.