PNG Needs Deficit-Free K25bn Budget for 2026, Says Nomane
Papua New Guinea should adopt a K25 billion deficit-free budget in 2026 to restore financial discipline and put provinces at the centre of national development, says James Nomane, MP. He said the country must reset its spending priorities after years of rising debt and consumption-driven borrowing.
His proposal keeps administrative spending at K5.6 billion and directs government to remove inefficiencies, including ghost names and unnecessary costs. Under the plan, provinces would receive K6.6 billion, a significant rise from 2025, allowing them to build competitive advantages through agriculture, resource development and youth labour mobility.
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| PNG Needs Deficit-Free K25bn Budget for 2026, Says Nomane |
Mr Nomane said the government should maintain K3.5 billion for debt servicing and avoid taking on new loans. National functions in education, health, and law and order would be handed to provinces to strengthen autonomy. He also called for the scrapping of Connect PNG, recommending K500 million solely for major highway upgrades, while DSIP and PSIP would be capped at K10 million.
e said decentralisation and strong PPP arrangements would enable provinces to secure blended finance for infrastructure and ensure more inclusive growth. “This is how a responsible government should live within its means and stop the pernicious habit of excessive borrowing to spend on consumption,” Mr Nomane said.
He added that the next major step for PNG is to respect governors and MPs by allowing provinces to lead their own development pace and direction. “After 50 years of Independence, the most significant action the National Government can take is to empower provinces towards MTDP IV and Vision 2050.”
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