During Question Time yesterday, member for Rabaul, Dr Allan Marat, asked the Treasurer to confirm whether the government’s focus on borrowing would impact negatively on Papua New Guinea’s economy in the future.
Mr Marat questioned whether Papua New Guinea’s economy was being managed well, given the government’s increased borrowing.
Given the recent increase in borrowing by the current government, as well as criticism from various sectors regarding the government’s debt levels, Minister Pruaitch was quick to defend the government’s actions.
Whilst acknowledging that the end of the construction phase of the PNG LNG Project had contributed to a slowdown in the overall economy, Minister Pruaitch reaffirmed the O’Neil-Dion government’s commitment to ensuring that the finances of the country were being managed, through prudent fiscal strategies.
Further indications of the state of the economy are expected to be highlighted in the 2015 National Budget, which will be handed down in November.