The latest publication for the Papua New Guinea National Research Institute (PNG NRI) has been released as PNG NRI Issues Paper No.35. The Issues Paper is authored by Dr. Osborne Sanida, PNG NRI Director.
The Issues Paper provides an analysis of the progression of the National Budget from the 2019 Budget under the O’Neil-Abel Government to the 2020 Budget under the Marape-Steven Government and its economic implications, using information from relevant budget documents and related literature.
The paper recommends six areas of intervention, including:
- Taking effective control of the personnel emoluments’ blowouts because the continuation of such blowouts suggests a loss of control of the deficit;
- Ensuring stability in the capital budget going forward to grow the economy;
- Promoting job creation and broad-based economic growth to broaden the tax base and increase government revenue;
- Making the resources sector work better in terms of its contribution to government revenue and translating these revenues to grow the non-resource sector for sustainable economic growth and human development;
- Addressing the debt burden issue by promoting broad-based economic growth and increasing the government’s share of revenues from economic growth; and,
- Addressing the foreign exchange shortage issue by making it mandatory for big resource companies in PNG to bring onshore, foreign exchange earnings and not park them in offshore foreign currency accounts, and promoting SME development for exporting and import-substitution.
The success of the above interventions will depend on sound policies that are based on strong theoretical foundations and empirical evidence generated by research and analysis.
Download PDF file here.