Living Standard in Papua New Guinea Drops

Recent figures released by the Papua New Guinea Treasury Department show that the Living standard in the country  has dropped between 2014 and 2019.

In kina value, it has dropped from K5, 380 to K4, 860, a drop of K520 per person between this period.

Treasury Secretary Dairi Vele told a media briefing last Friday, in addition to that - there were about 120,000 job losses.

Mr. Vele says, the 2020 Budget saw expenditure projected at K18.7 billion, revenue was projected at K14 billion while budget deficit was at K4.6 billion - the highest for the country.

The Treasurer attributed the deficit to economic mismanagement and irresponsibility, mainly through loans and unpaid bills owed to service providers and public servants.

He says the debt to GDP ratio was 42% and was projected to decrease to 38% after some form of fiscal consolidation in the 2020 National Budget.

Meantime, the National Government is looking at increasing total revenue for the country, from K13 billion in 2019 to reach K14 billion this year, and K18.8 billion by 2024.

Treasury Secretary Dairi Vele told a media briefing this is because major revenue areas of personal income taxes, the company income tax, and the Goods and Services Tax (GST) have shown very little growth over the last five years.

He said this will be done through enforcing greater compliance and not to increase taxes.

Mr. Vele adds that the aim is to level the playing field and make sure everyone pays their legal obligations.

NBC News / PNG Today

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