TREASURER RESPONDS TO OPPOSITION'S VIEW ON 2023 BUDGET

“I am a strong believer in our Parliamentary democracy and the vital role that the Opposition can play in holding the executive arm of government to account. However, I was very disappointed with the misleading, ill-informed, and often scare-tactic response by the Shadow Treasurer to the 2023 Budget. The Shadow Treasurer should know at least the basic structures of the budget. Clearly, he does not. I invite him to come to Treasury for some lessons on budget basics and his boss can also tag along” stated the Treasurer, Ian Ling-Stuckey. “The first budget basic is that there are 3 appropriation bills, not one. As set out in our Constitution, the Parliament and the Judiciary have separate appropriation bills from the General Public Service. So please do not say our numbers are wrong just because you don’t add up all three bills that form our budget. And come across to Treasury for a basic lesson on how debt principal payments are covered in the budget. In 2023, we have done it the same way as for the last two decades. Please hurry up and learn. Because at the moment, you are misleading the people of PNG simply because you don’t understand budget basics” stated Ian Ling-Stuckey.

“What a long and rambling response. Total confusion on their own figures. One example – the extraordinary claim that we only have K5.8 billion to pay for all capital expenditures and debt interest payments. Just wrong.

The 2023 budget provides K9.7 billion for capital expenditures – the highest level of investment in our country’s history.

We also have K2.5 billion set aside for debt interest costs. Debt exploded under the PNC. We are bringing those costs and debt levels under control.

Indeed, our good, cheap, financing strategy, lowering average interest costs from 6.5% in 2019 down to just 4.2% in 2023, has saved K1.35 billion in 2023 alone.

A smart and innovative government that has freed up these funds for law and order and education and health. No more expensive commercial borrowings at over 8%! “A key question is “What does living within our means really mean?”.

The Opposition takes a narrow view that it is only considered over one year. But as Governor Bird highlighted in his robust response, Government’s need to take a medium-term view. The budget must be sustainable over the medium-term.

The IMF and World Bank are aware that our expenditures are currently higher than our revenues, because the government wishes to continue stimulating economic growth, but they know that this is sustainable if we keep to our plan to return to a budget surplus by 2027.

When a family has a big capital expense such as a new house, it doesn’t plan to have to repay it all in one year. Of course the parents will take a longer-term view, ensuring that the home loan can be repaid over the next 15 or 20 years.

Even our Fiscal Responsibility Act has always taken the medium-term view, calling for a balanced budget on average, not a balanced budget every year.

“One wonders whose interests the Opposition serves. It was extraordinary that the shadow treasurer spent a full 7 minutes of his speech on the new forest sector taxes, aimed to encourage downstream processing.

One has to ask why that was such a big part of his speech? Only a quick comment on the banking taxes. Almost no time on our health or education sectors.

But a full 7 minutes on forestry. Mmmm.* “The Oppo. As I said months ago, this will be a tough budget and some people won’t be happy.

We know the banks will not be happy, We know that some round log exporters will be unhappy.

But these extra funds means we have been able to fund major increases for law and order, a major K590 million household assistance package to help with the cost of living, and K1 billion of budget repair in reducing the deficit and build-up of debt.

This is a good, responsible, caring budget, implementing the vision of re-elected Prime Minister Marape and his very competent coalition team” stated the Treasurer.