Prime Minister James Marape has called on elected leaders, public servants and financial administrators to ensure public funds are properly spent and reach communities across Papua New Guinea.
Speaking at the launch of a public finance and expenditure management initiative at Parliament House yesterday, Mr. Marape said government spending must deliver basic services and tangible improvements for people throughout the country.
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Mr. Marape said leaders at district, provincial and local levels carried significant responsibility under Papua New Guinea’s decentralized system of government to ensure public funds were used effectively for schools, health services, roads and other essential services.
Mr. Marape said the Government’s growing national budget reflected economic growth since Independence but stressed that increased spending must directly improve the lives of citizens.
He said Papua New Guinea’s economy had expanded from about K15 billion in 2002 to nearly K79 billion in 2019 and now stood at around K135 billion, with the Government operating a K30 billion national budget in 2026.
“But what good is growing the economy when we might be misfiring in our spending? Every spending must hit the target,” Mr. Marape said.
Using the analogy of a dartboard, the Prime Minister said government expenditure must be directed to areas that genuinely improve people’s lives, adding that limited resources required careful prioritization.
Mr. Marape also highlighted the Government’s efforts to reduce the national deficit despite economic pressures caused by the COVID-19 pandemic and global economic conditions.
“Today we have reduced our deficit to about 1.1 percent, and next year we are aiming for a balanced budget where we spend only what we earn,” he said.
He said the Government’s focus on agriculture, exports and improved resource revenue arrangements was aimed at strengthening economic self-reliance and retaining more benefits within Papua New Guinea.
Mr. Marape said major resource projects, including Wafi-Golpu and Papua LNG, were being negotiated to secure better long-term revenue outcomes for the country.
He further stated that districts were expected to receive at least K70 million each in funding support during the fiscal year, describing it as part of the Government’s push to empower provinces and districts to deliver services directly to communities.
The Prime Minister also pointed to governance reforms introduced by the Government, including the establishment of the Independent Commission Against Corruption (ICAC), reforms to the National Procurement Act and amendments to the Proceeds of Crime Act.
“These reforms are all about ensuring public money reaches the people and is not diverted away from its intended purpose,” he said.
Mr. Marape concluded by urging elected and appointed officials to work together to ensure development and services reached communities across the country as Papua New Guinea moves into its next 50 years of nationhood.