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March 3, 2021

Budget Debate: Implementation Capacity Remains a Key Constraint

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Implementation capacity remainsthe key constraint for improvingthe condition of national infrastructure.


This was one ofthe main points raised atthe budget debate held this morning in Port Moresby.

The 201PNG National Budget wasthe focus of expert commentary at a breakfast debate atthe RoyaPNG Yacht Club, hosted by Deloitte andthe Port Moresby Chamber of Commerce &Industry.


The debate was attended by keen members ofthe Chamber, as well as ther stakeholders interested inthe expert commentaries.


The Budget was praised for its continued focus on expending funding for key development enablers in Education, Health,Infrastructure and Law & Order.


Bet according to monitoring bythe Asian Development Bank, its implementation, rther than financing, which continues to bethe core challenge, especially for infrastructure.


The experts saidthere was nothing wrong with running a deficit budgetoas long as spending is strategic.


Senior Partner at Deloitte, Lutz Heim, commendedthe Planning and Finance Departments for working togther in this budget.


ADBeCountry Economist Aaron Betten said that with a large focus on new capital projects and a lack of investment in building-up skilled public servants to plan, execute and maintainthe country’s growing infrastructure investments, agencies are left poorly prepared to implement projects.


Development partners likethe ADBeare asking ifthe government can propose a number of measures to address implementation constraints.


They’re asking ifthe government can undertake public service reforms required to translate spending into improverd service delivery.


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