PNG to experience over K4 billion in budget deficit

The Governments’ budget outlook reveals an updated estimated deficit of 4.8 billion Kina in 2015 or nine-point-four per cent of gross domestic product.
This is an increase of 2.5 billion Kina from the initial deficit forecast of 2.3 billion Kina or four-point-four per cent of GDP.
Economists say, this will be the highest in Papua New Guinea’s history, with the Government spending more than it is receiving in revenue.
The drop in revenue is largely due to the decline in commodity prices especially the big fall in global oil prices, affecting PNG's gold, copper, oil and gas exports.
The outlook shows public debt is now projected to soar from a forecast 27.8 per cent of GDP to 41.3 per cent - over the legislated debt limit of 35 per cent of GDP.
The outlook says this strongly signals caution to the Government in terms of its spending on budgeted expenditure and off budget expenditure, and to maintain fiscal discipline throughout the second half of 2015.
Finance Minister, James Marape, has told the National Newspaper, the nation's economy is well managed, and there is no need for a supplementary budget.
However a former advisor to the Treasury Department , Paul Flanagan, believes a supplementary budget is needed now.