Prime Minister James Marape has commended the Internal Revenue Commission (IRC) for collecting K16.5 billion in 2026, representing 81 per cent of its revised K20.3 billion target, as the Government pushes towards a balanced national budget in 2027.
PM Marape made the announcement on Tuesday following the Budget Management Committee meeting at Melanesian Haus in Waigani.
Related news: https://www.postcourier.com.pg/pm-james-marape-commends-irc-for-record-k16-5-billion-revenue-collection-in-2026/
He chaired the meeting, attended by Finance Minister Thomas Opa, senior officials from the Departments of Treasury and Finance, PNG Customs Chief Commissioner David Towe and other government representatives.
He said the IRC had achieved approximately 81 per cent of its revised revenue target despite difficult global economic conditions and domestic fiscal pressures.
“This is the first time we have asked IRC to collect revenue of around K20 billion, and they are progressing well towards that target. I want to commend IRC for the tremendous work they are doing in collecting revenue for our Government and our country,” Marape said.
The original 2026 Budget projected IRC collections of approximately K17.8 billion before the target was increased to K20.3 billion under the Supplementary Budget.
The K16.5 billion collected so far represents approximately 92.7 per cent of the original annual projection. The reported collections do not include certain transfers associated with Goods and Services Tax arrangements involving provincial governments.
PM Marape said the IRC’s performance reflected continued government investment in revenue administration, improved tax compliance, modern information and communications technology systems, and stronger institutional capacity.
Annual revenue collections increased from approximately K8 billion in 2020 to K16.6 billion in 2024 and K17.3 billion in 2025.
The 2025 result represented an increase of about K700 million, or four per cent, compared with 2024, despite operational challenges and wider economic pressures.
PM Marape said the growth demonstrated the importance of strengthening national institutions to generate domestic revenue and reduce reliance on other sources of funding.
“Our Government continues investing in ICT systems to eliminate the ‘black economy’ and ensure that everyone pays their fair share of tax,” he said.
He thanked major businesses and individual taxpayers for meeting their tax obligations, saying improved compliance was helping the Government collect revenue despite difficult economic conditions.
PM Marape said the Government would continue strengthening tax administration to broaden the revenue base, reduce leakages and improve compliance, enabling the country to increasingly finance development priorities through internally generated revenue.
Despite the strong collections, PM Marape warned that increased revenue must not lead to complacency, stressing that government expenditure needed to remain under strict control.
“Just because we are collecting this much revenue must not give us a false sense of security,” he said.
He said the Government was still subsidizing fuel costs while facing difficult economic conditions, disasters and other challenges requiring financial support for provinces, districts and national programmes.
PM Marape directed government departments and agencies to operate within approved budget allocations and avoid introducing unplanned expenditure commitments.
“No new contracts that are unplanned or unbudgeted must be introduced,” he said.
“We must complete projects that have already been supported, maintain fiscal consolidation and ensure government spending remains responsible.”
PM Marape said the IRC’s performance would support the Government’s fiscal consolidation programme and its ambition to deliver a balanced national budget in 2027.
He said the Government remained committed to containing the fiscal deficit at approximately one per cent while strengthening revenue collection and controlling expenditure.
“We are maintaining our Fiscal Consolidation Strategy, sticking to the one per cent deficit target, and hopefully bringing Government spending to a balanced budget next year,” he said.
PM Marape acknowledged that 2027 would bring additional financial pressures, including the National General Election, making careful budget management essential.
He also called for greater attention to non-tax revenue, including dividends and earnings from state-owned enterprises, state-owned companies and statutory bodies.
“Where possible, dividends and earnings from our state-owned enterprises, companies and statutory bodies must return to the State to support our national budget,” he said in a statement.
Related news: https://www.thepngsun.com/pm-marape-revenue-jumps-from-k9-7-billion-in-2018-to-k17-billion-in-2025-economy-is-diversified-with-growth/
The Prime Minister said weekly Budget Management Committee meetings would continue monitoring revenue collection, recurrent expenditure, the Public Investment Programme and overall budget implementation.
“IRC is leading the way, and I commend its leadership, management and hardworking officers. We must continue improving efficiency, strengthening compliance and collecting the revenue necessary to finance essential services and grow our economy,” PM Marape said.