The national government is optimistic about settling its debts, despite cash flow issues.
Treasurer Ian Ling-Stuckey says the AU$1billion loan from the Australian Government will cushion debt levels within and outside the country.
The Treasurer also announced that warrants will not be signed unless there is visibility on the availability of cash. He says the Government has prioritized to pay huge bills or what he described as priority bills.
Treasurer Ling-Stuckey says Government loans or infrastructure contracts are one. These were loans acquired by the previous Government
With a K4.6billion loan deficit faced by the ruling Government, Treasurer Ling-Stuckey says there is money in the country, but it has not been collected through levies and tax.
However, for the K1billion sought through the Australian Government, K552million is for personal emoluments.
About 800 retired public servants are included. According to the Treasurer, K120million will be saved once that is paid off.
The Treasurer also announced strict measures taken by his Department to tighten up expenditure records. He announced the monthly signing of warrants, unlike previous years. Treasurer Ling-Stuckey says this is to manage cash flow.
He reiterated that all these are efforts to help repair the budget going forward.
By Jack Lapauve Jr – EM TV News, Port Moresby