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May 7, 2021

Polye: Budget Cuts to Affect All Sectors

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by Jack Lapauve Jr – EM TV, Port Moresby

Opposition leader, Don Pole, says health and education may not see big cuts but other areas will be affected.

Mr Polye says all government services embrace each other and the government must be careful.

He criticised the PNG government’s unnecessary expenditure on some of the projects implemented this year.

“The Government has spent unnecessarily and has left the economy crumbling to its knees.

“All other government departments will surely be affected, education cannot be accessed if Law and Order is not established or present”, Polye said.

However earlier today, Prime Minister, Peter O’Neill, says budget cuts will be made and the budget will be revised in Parliament’s October sitting.

The Prime Minister said there is no doubt that the economy is being affected by the decline in commodity prices and that is happening to countries all around the world.

“In the face of global challenges Papua New Guinea is in a strong position because we do not have foreign debt like many countries around the world.

“We are attending to both sides of the coin, cutting non-priority expenditure on one side and increasing revenue on the other.

“We have a calculated and systematic approach to managing the economy.

“Despite misinformation and alarmist claims by people with vested interests, our debt to GDP is also very stable and within the legislated cap.

“Today our debt to GDP ratio runs at around 33 per cent of GDP so is below the Financial Responsibilities Act requirement of 35 per cent.

The Prime Minister maintained that PNG’s economy is manageable despite overwhelming speculation in the media.


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