PNG hands down record K15.1 billion 2014 Budget

TREASURER Don Polye yesterday handed down a record K15.144 billion budget, the biggest ever in the history of Papua New Guinea.

It is an increase by K1.8 billion or 13.8% from K13.2 billion in the 2013 revised budget.

He also handed down a 2013 Supplementary Budget, which  contains a number of saving measures realised from project under-spends of K386 million. This will be brought forward for investment in the 2015 Pacific Games.

He said the budget, based on the theme “Consolidate gains for sustained growth through prudent investments” involved a lot of money that needed to be spent wisely to improve the lives of the seven million people of PNG.

“The 2014 budget is a single fully-integrated multi-year budget,” Polye said.

“For the first time, agencies and the public will have a clear idea of the appropriated 2014 expenditure and future year expenditure estimates over the period 2015 to 2017 for each government department, agency and authority.

“There will be an improved understanding of what each agency’s funding is being spent on in terms of personal emoluments, goods and services, utilities and rentals, grants and capital formation.

“This budget is presented on a sectoral approach, comprising administration (which includes interest payments), economic and agriculture, education, health, infrastructure, law and order, provinces and social.

“This gives the government and the people of Papua New Guinea the clearest picture yet of where it is allocating its funds and which sectors are receiving 

increased funding overtime.

“This government will continue to strive for a stronger economy through diversification by translating the past, present and anticipated future gains from the mining and resources sector into prudent and sustainable investments in other sectors such as education, health, law and order, energy, transport, tourism, and agriculture.”

Polye said to achieve that, a culture of fiscal discipline must be developed, entrenched and enhanced.

“We cannot allow the hard-earned macro-economic stability and discipline from the past to be eroded,” he said.

“We are making historic investment decisions from a position of economic strength.”

He said the Government had introduced tuition fee-free education, investment in quality higher education, free health care, significant infrastructure funding, transfer of funds to sub-national governments under the decentralisation strategy, and policy to support growth in agriculture, tourism and small to medium enterprises.

Polye said it was of regional significance that sporting facilities for the 2015 Pacific Games met world standards and were completed by March 2015. It will cater for more than 3,000 visiting athletes from 22 Pacific nations and 28 sports from July 4-18, 2015.

“The 2013 Supplementary Budget is a demonstration of the Government’s commitment to ensuring that the 2015 Pacific Games is a memorable event for our visitors and the people of Papua New Guinea,” he said.

“The results are and will be out there for everyone to see.”

PNG Today/The National