TREASURER Ian Ling-Stuckey has highlighted the overview of the 2025 National Budget with its theme “Securing PNG in 2025 and Beyond”.
Addressing the media at the National Parliament State Function Room today, alongside National Planning Minister Ano Pala and Finance Minister Mikki Keok, Minister Ling-Stuckey said the 2025 Budget marks a significant financial plan for Papua New Guinea (PNG) as the nation celebrates its 50th anniversary.
He said the 2025 Budget mainly emphasizes the government’s commitment to enhancing the safety and security of all citizens.
The Treasurer highlighted the challenges faced in 2024, including violence and economic pressures, and outlined key initiatives aimed at addressing these issues.
Key highlights of the 2025 Budget:
- Increased Support for Law Enforcement and Defence:
• More than K700 million allocated to police, with a 67% increase in goods and services and a 19% rise in wages.
• Defence forces to receive a 15% increase in wages, a 32% increase in goods and services, and a remarkable 116% increase in capital investment.
• Judiciary operating costs will see a 25% increase to strengthen the legal framework.
2. Household Assistance Package:
• A record K685 million allocated for the fourth and largest Household Assistance Package, totaling K2,322 million over four years.
• Introduction of zero-rating GST for 13 essential goods to alleviate cost-of-living pressures on families.
3. Record Budget for Human and Capital Resources:
• The budget totals K28,357 million, the largest in PNG’s history, with revenues projected at K25,408 million.
• Continued efforts for budget repair with a K1,035 million reductions in the deficit, bringing it down to K2,949 million.
• Targeting a reduction of the deficit to GDP ratio from 8.9% in 2020 to 2.2% in 2025, with plans for a budget surplus by 2027 and the possibility of no debt by 2034.
4. Infrastructure Investments:
• A historic Public Investment Program of K7,616 million, a 273% increase from the K2,041 million in 2018.
5. Focus on Economic Growth and Job Creation:
• Projected real non-resource growth of 5.2% in 2025, aiming for sustained growth above 4% for the longest consecutive period in PNG’s history.
• Formal sector job growth expected to recover to 2.9% in 2024.
6. Investments in Education and Health:
• Education funding increased to K4,435 million (12% increase) and health funding to K2,768 million (9.4% increase).
7. Alignment with Government Priorities:
• The budget reflects the priorities set forth by Prime Minister Marape in his speech at the start of the 11th Parliament.
“The challenge now is implementing the budget effectively to ensure that we are indeed securing PNG in 2025 and beyond,” stated Treasurer Ian Ling-Stuckey.
