PRIME Minister Hon. James Marape says the Government’s Supplementary Budget, to be presented in Parliament on Tuesday, will focus on three national priorities: sustaining fuel price relief, preparing for the impacts of El Niño, and ensuring Papua New Guinea is ready for the 2027 National General Election.
The Prime Minister said the Supplementary Budget had been developed following extensive work by the Department of Treasury, together with the Departments of Finance, National Planning and Monitoring, and other key agencies.
“Our Government has carefully reviewed our priorities and how best we can support our country during these challenging times,” Prime Minister Marape said.
“The Supplementary Budget will focus on areas that matter most to our people while maintaining our commitment to fiscal discipline.”
Prime Minister Marape said the Government’s fuel price support programme had already reached approximately K800 million and was expected to exceed K1 billion before the end of the year.
“We must make provision to continue supporting Papua New Guineans against the impact of rising global fuel prices,” he said.
“At the same time, we must prepare for the possible impacts of El Niño, which may continue to affect parts of the country this year and into next year.
“We will also ensure there are adequate resources to support preparations for the 2027 National General Election.”
The Prime Minister said the Government would establish financial provisions to assist communities that may be affected by drought and other weather-related disasters.
He announced that financial and administrative instructions would be issued to all departmental heads, provincial administrators, district administrators and Section 32 officers to immediately reduce unnecessary government spending and adopt a savings mindset for the remainder of the financial year.
“I am directing all public sector leaders to close out the year with a savings mindset,” Prime Minister Marape said.”
“Non-essential expenditure such as conferences, unnecessary air travel and other discretionary activities should be deferred or replaced with online meetings wherever possible.
“We must preserve public funds for the priorities that directly affect our people.”
Prime Minister Marape also directed that Public Investment Programme (PIP) projects that have not yet commenced be deferred until next year, while non-essential recurrent expenditure would also be curtailed.
“Every kina we save will be redirected towards fuel relief, El Niño preparedness, election preparations and other essential national priorities,” he said.
The Prime Minister stressed that the Government would not finance the Supplementary Budget through additional borrowing.
“We are not going to borrow money to respond to these challenges,” he said.
“We will finance our priorities from within our existing resources through savings, prudent financial management and stronger domestic revenue.”
Prime Minister Marape said the Government would also seek additional support from State-owned enterprises, including Kumul Petroleum Holdings Limited and Kumul Minerals Holdings Limited, whose revenues had benefited from stronger international commodity prices.
“We are asking our State-owned enterprises to contribute to the national effort,” he said.
“The combination of stronger revenues from our resource sector, together with savings from recurrent expenditure and non-essential Public Investment Programme projects, will help us meet these national priorities without placing additional debt on future generations.”
Prime Minister Marape commended Treasurer Hon. Ian Ling-Stuckey and the Government’s economic agencies for maintaining Papua New Guinea’s fiscal consolidation programme despite ongoing global economic pressures.
“I commend the Treasurer and our economic team for remaining focused on responsible financial management,” he said.
“Even in difficult times, we are staying within our broader fiscal strategy. We are reprioritising from within this year’s revenues and maintaining our path of fiscal consolidation.
“We managed our way through COVID-19 without abandoning fiscal discipline, and we will do the same again.”
The Prime Minister said the Government remained firmly committed to restoring the country to a balanced budget.
“Our objective remains unchanged,” he said.
“We are on track to deliver a balanced budget next year, and possibly even a modest surplus.
“This Government will not use global challenges or natural disasters as an excuse to accumulate more debt.
“We will save from within, spend responsibly, and continue building a stronger, more resilient economy for all Papua New Guineans.”