For the time being, PNG’s economy appears to be managing its way through the COVID-19 crisis. According the Treasurer Ian Ling-Stuckey in the Final Budget Outcome for 2020, released in the past week, the ‘economic impact of the health crisis remained within our initial estimates.’
With the Marape government surviving a challenge late last year and vaccines for the COVID-19 virus starting to emerge, Business Advantage PNG considers what business in Papua New Guinea can expect from the year ahead.
Papua New Guinea’s Prime Minister, James Marape, has outlined his government’s goals for 2021, including building up infrastructure, undertaking ‘Budget repair’ and exploring ways to invest in domestic businesses.
There were few tax surprises in the 2020-21 Budget. However, what was not there was just as significant as what was, according to KPMG’s Tax Partner in Papua New Guinea, Karen McEntee.
The current economic conditions are the most ‘challenging in our lifetime’, according to Justin Smirk, Senior Economist at Westpac. He told a Business Advantage PNG briefing that the success of the 2021 National Budget depended on getting Papua New Guinea’s non-resources economy firing.
Parliament sat briefly and unexpectedly yesterday to pass the 2021 National Budget legislation after Speaker Job Pomat ruled that last Friday’s surprise adjournment was illegal. It may not sit again until April 2021.
With Papua New Guinea’s Mid-year Economic and Fiscal Outlook predicting government debt will rise to 55 per cent of GDP, its government has announced a supplementary budget to address numerous fiscal challenges. There are also moves for the central bank to print money to fund budget shortfalls.
Director of the Development Policy Centre, Stephen Howes, analyses the extraordinary growth of PNG’s government salary bill and explains why it’s a concern.
Two new reports have outlined the revenue challenges being faced by Papua New Guinea’s government in the face of the COVID-19 pandemic.
Three academics, Dek Joe Sum, Maholopa Laveil and Stephen Howes, analyse Papua New Guinea’s monetary easing measures in response to COVID-19.