Control expenditure Government: BPNG

The National Government must control is expenditure during this National Election period, says Bank of Papua New Guinea Governor Loi Bakani.

“Government must control and prioritise its spending especially before and after the National elections to maintain fiscal prudency and debt sustainability,” Bakani was quoted in the BPNG Quarterly Economic Bulletin.   

He also called for all revenue raising Government agencies to improve on their efforts in revenue collections in 2017.

The 2016 December Quarter report, states that international prices of some of the export commodities improved during the March quarter of 2017.

“Agricultural commodity prices increased by 1 per cent in the first quarter of the year.

“For Papua New Guinea’s exports, prices for cocoa, copra oil, cobalt, gold and LNG increased in the quarter. This has led to an improvement in foreign exchange inflows.

 “The IMF reported that crude oil prices are expected to rise to an average of $US 55.0 per barrel in 2017 from an average of $US43.0 per barrel in 2016.

“Whilst some export commodity prices improved, they continued to be relatively low and affect Government revenue and expenditure.”

BPNG is still maintaining control on the country’s foreign reserves.

“The level of gross foreign exchange reserves at the end of March 2017 was $US 1,737.9 (K5,439.3) million, sufficient for 8.5 months cover for total imports, and 14.4 months for non-mineral imports,” Quarterly Report stated.

“As at 17th May 2017, the level of gross foreign exchange reserves was $ US 1,694.8 (K5,304.6) million.”

Charles Yapumi