- The Deputy Prime Minister and Minister for Treasury, Hon. Charles Abel handed over the 2018 Budget on behalf of O'Neill-Abel Government at the Parliament this afternoon. Theme of this year budget is "Review our Priorities, Refocus our Energies and Reinforce our Strengths".
- The budget is guided by the long term visions to, rank among top 50 nations in terms of Human Development Index by 2050 (Vision 2050), be a middle income earning economy by 2030 (PNG DSP 2010-2030) ,be a world leader in responsible, sustainable developments (StaRS), implement development aspirations as envisaged in Alotau Accord 2 and Medium Term Development Plan 2018-2022.
- This is the first annual budget presented by this government and follows on the 25 day 100 point plan presented in the supplementary budget recently tabled in parliament.
- The aim of the budget is maintain fiscal discipline, grow revenues, strengthen economic base, improve governance and act strategically.
- Budget presented at K14.7 billion, as compared to 2017 supplementary budget estimate of K12.8 billion.
- Total revenue and grants are estimated at K12.73 billion in 2018 with increase of K1.75 billion from 2017 supplementary budget estimates of K10.98 billion.
- Tax revenue is estimated at K9.6 billion more than K770 million and Non-tax revenues are estimated at K2 billion more than K925 million, from 2017 supplementary budget.
- Deficit budget of K1.98 billion with deficit approximately amounting to 2.5% of GDP.
- More than 66% budget allocation for Key Priority Areas of Education, Infrastructure, Health, Law & Order and Economic & Agriculture.
- The inflation level expected at 6.9% in 2018.
- Various tax measures introduced to facilitate increased revenue collection, simplify rules, provide transparency, obtain participation from taxpayers etc.
(Source: Shishya. Full publication may be downloaded from the following link: http://www.shishya.net/uploads/1/0/1/6/10160876/shishya_papua_new_guinea_2018_budget_commentary.pdf )
Contributed by: Shishya Business Services, E: email@example.com, W: www.shishya.net