PNG Budget Criticised as Nomane Warns Debt Costs Are Squeezing Services
PNG’s 2026 National Budget has drawn sharp criticism from Parliamentary Opposition and Chuave MP James Nomane, who says the K30.9 billion plan places loan repayments ahead of essential services for communities.
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| PNG Budget Criticised as Nomane Warns Debt Costs Are Squeezing Services |
Mr Nomane said the budget, tabled by Treasurer Ian Ling-Stuckey on Tuesday, allocates too much to debt servicing at a time when health, education and other frontline sectors are already under strain. He argued that the Government’s large borrowing program over recent years has now created pressures that will be felt again in 2026.
While National Planning Minister Sir Ano Pala assured the public during the Budget Lock-Up that K10 billion is earmarked for capital projects, including major infrastructure and development programs, Mr Nomane maintains that these commitments are overshadowed by the scale of debt obligations.
According to the Opposition MP, the K30.9 billion envelope “leaves little room for essential services because too much money is being used to repay debts.” He said the budget numbers make clear that debt servicing remains one of the largest pressures on public expenditure next year.
He highlighted that a total of K5.5771 billion is set aside for debt repayment. Out of that amount, K3.723 billion—about 67%—will be absorbed by interest payments alone, while K1.854 billion will go towards principal retirement.
Mr Nomane stressed that the interest bill accounts for 12.3% of the entire budget, “reducing funding available for health, education, infrastructure, and provincial support.” He said the heavy allocation to debt servicing “is the result of years of high borrowing, which has now limited the government’s ability to fund basic services.”
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