Prime Minister James Marape says the Supplementary Budget to be tabled in Parliament on Tuesday, today will prioritize fuel price relief, El Niño preparedness and preparations for the 2027 National General Election, while avoiding additional borrowing.
Opposition Leader James Nomane has previously called on the Government to ensure the Supplementary Budget directly addresses the economic pressures facing ordinary Papua New Guineans, including rising living costs and the impact of fuel prices.
The Supplementary Budget has been developed following extensive work by the Department of Treasury, Department of Finance, Department of National Planning and Monitoring and other key government agencies.
“Our Government has carefully reviewed our priorities and how best we can support our country during these challenging times,” Mr. Marape said in a statement released last Sunday.
“The Supplementary Budget will focus on areas that matter most to our people while maintaining our commitment to fiscal discipline.”
Mr. Marape said the Government’s fuel price support programme had already reached about 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.
He said the Government must also prepare for the possible impacts of El Niño, which could continue affecting parts of the country this year and into next year.
Financial provisions will be established to assist communities affected by drought and other weather-related disasters.
Mr. Marape also said adequate resources would be provided for preparations for the 2027 National General Election.
He directed 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 year.
“Non-essential expenditure such as conferences, unnecessary air travel and other discretionary activities should be deferred or replaced with online meetings wherever possible,” he said.
Mr. Marape also directed that Public Investment Programme projects that have not yet commenced be deferred until next year, while non-essential recurrent expenditure would be curtailed.
“Every kina we save will be redirected towards fuel relief, El Niño preparedness, election preparations and other essential national priorities,” he said.
He stressed that the Supplementary Budget would not be financed through additional borrowing.
“We are not going to borrow money to respond to these challenges,” Mr. Marape said.
He said the Government would instead rely on existing resources, savings, prudent financial management and stronger domestic revenue.
The Government would also seek additional support from State-owned enterprises, including Kumul Petroleum Holdings Limited and Kumul Minerals Holdings Limited, whose revenues have benefited from stronger international commodity prices.
Mr. Marape said the Government remained committed to fiscal consolidation and 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.”