Contributed by: Shishya Business Services
- The Minister for Treasury, Hon. Ian Ling-Stuckey handed over the 2020 Budget on behalf of Marape-Steven Government, at the Parliament, this afternoon. Theme of this year budget is “Take Back PNG”.
- This is the first annual budget presented by this government and comes days after the 2019 Supplementary Budget, which indicated a budget hole of around K2.2billion in the 2019 budget.
- The principles guiding this budget is Spend wisely, Raise revenue fairly, Finance debt cheaply, Focus on sustainable investment options, Reform program for State Owner Enterprises (SOE), Grow non-revenue growth above 5%, Ease foreign exchange, etc
- The 2020 Budget will be guided by the recent Marape-Manifesto, which contains 10 declarations covering landowner benefits, economic growth, health and education, security, Small and Medium Enterprises (SME) promotion, a strong Christian Identity and Public Sector efficiency. This Manifesto is made in alignment with the Vision 2050, PNG Development Strategic Plan (DSP) (2010-2030), the Medium Term Development Plan (MTDP) III, the National Strategy for Responsible Sustainable Development (StaRS 2017), and the Fiscal Responsibility Act 2006 (FRA) as amended in 2019. The 2020 Budget will continue to be guided by the Medium Term Fiscal Strategy (MTFS) 2018-22.
- Budget presented at K18.73 billion, as compared to 2019 supplementary budget estimate of K16.53 billion.
- Total budgeted expenditure consists of, K12.75 billion in operational expenditure as against K11.49 billion in 2019 and K5.98 billion in capital expenditure as against K5.03 billion, from 2019 supplementary budget.
- The priorities of 2010 Capital Investment Budget is guided by the Marape Manifesto Agenda 2030 to make PNG the richest black Christian nation and based on Growth Strategies such as Connect all PNG Missing Link Roads, Special Economic Zones (SEZ), Enabling Infrastructures, Agriculture commercialisation, SME development, Tourism hubs, Downstream processing, Educated and Technically Skilled Labour force
- Total revenue and grants are estimated at K14.09 billion in 2020 with increase of K1.07 billion from 2019 supplementary budget estimate of K13.02 billion
- Tax revenue is estimated at K11.16 billion more than K714 million and Non-tax revenues are estimated at K2 billion more than K371 million, from 2019 supplementary budget.
- A record Deficit budget of K4.63 billion with deficit approximately amounting to 5% of GDP. This is mainly due to the arrears in payments budgeted in prior years.
- The inflation level expected at 5.7% in 2020.
- 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: