The 2026 National Budget will be presented in Parliament tomorrow, but the prime minister has already hinted a budget mark that is more than K30 billion, and one that will maintain the government’s fiscal and service delivery focus.
Prime Minister (PM) James Marape in a press statement said the 2026 National Budget, to be delivered on Tuesday by Treasurer Ian Ling-Stuckey, will maintain the Government’s steady fiscal direction, strengthen essential services, and reinforce the long-term development priorities under MTDP IV and the national Reset PNG@50 programme.
For the first time, the National Budget will pass the K30 billion mark, with over 88% of it funded from domestic revenue — achieved without raising taxes. The Prime Minister said the government’s fiscal position reflects the success of its disciplined long-term planning.
“This Budget is fully aligned with the Government’s 13-Year Budget Repair Plan, which lays out a clear pathway to reduce debt, strengthen revenue, and restore long-term fiscal stability. We remain firmly committed to this plan. Our debt-reduction programme is tracking on target, and in 2026 we will record one of the smallest deficits in our nation’s recent history — bringing us much closer to a balanced budget by 2027.
“Our domestic revenue performance continues to improve, not because we are introducing new taxes, but because the size and activity of the local economy are expanding. The increased volume of collections reflects real economic growth and stronger compliance across the system.”
Prime Minister Marape emphasized that this year’s Budget is not aimed at dramatic shifts or surprises, but rather consolidating gains made over the past five years while responsibly managing inflation and supporting frontline services.
“The 2026 Budget will present no surprises. It maintains stability, consistency, and disciplined planning. We are staying the course to ensure effective services and responsible growth,” he said.
Prime Minister Marape also said the recurrent expenditures will be prioritized towards core services in 2026 ensuring salaries, goods, and services are fully supported for key priority areas. He noted that the Government is committed to protecting core public services so that schools, hospitals, police, and frontline agencies continue to function without disruption.
He also confirmed that the GST relief on essential household items, introduced last year to great success, will continue to the end of 2026.
“This measure remains in place because easing the cost of living for families is a priority, and we have already accounted for it in the Budget,” he said.
