by Scott Waide – EM TV, Lae
Finance Minister, James Marape, says funding cuts to non-essential areas of expenditure will be made to cater for shortfalls caused by the low oil prices.
Funding cuts, however, are not expected in district funding, education and health.
Cuts may affect some infrastructure development in the country.
But, Marape says the government is confident of returning to a surplus budget in 2016 and 2017, when oil prices recover.
Oil prices are currently at 50 US dollars a barrel which has meant that projected revenue has not been forthcoming.
Yesterday, Oil Search expressed concerns over the impacts of the low oil prices with Managing Director, Peter Botten, saying while it won’t affect current exploration and infrastructure development, it may affect revenues.
According to the financial minister, Papua New Guinea, will still maintain financial composure over the next three years.