2013 Budget Blowout – PNG Red Alert

By NATHAN DINGU

It has occurred to me that most Papua New Guineans do not comprehend the meaning of a budget blowout and a lessening GDP (Gross Domestic Product).

Well the true fact is that this is happening in Papua New Guinea right as we speak. James Marape, Minister for Education and Finance has recently announced that PNG shall be in budget deficit by as much as K2.4 billion. Of which PNG shall seek both internal and external funding of this.

A Budget deficit occurs mainly as a result of a lessening GDP, which literally means more government spending on top of a declining revenue sector.

What does this tell the average Papua New Guinean? We are currently facing a situation whereby there will be:

- Less business revenue resulting in more unemployment
- Possibility of hyper inflation
- More Borrowings by the government to cover expenditure in 2013 resulting in
- More borrowings by the government by 2014

What is the government doing about this? They are spending more in free health and education, making commitments left right and center and they are further relying on only one revenue sector to cover all this which is basically the LNG.

Do we have an irresponsible government? Of course we do! How the heck did we come to this in the first place? We have literally been fed using money that does not exist to believe and accept a government that is spending more than it can afford!

What can the current opposition do about this? Nothing – they were part of the same spending spree leading up to the elections.

Is PNG in Red Alert? Yes we are – Loans and further loans simply means that the Papua New Guinea government shall be faced into signing agreements that are not in the best interest of this nation!

Do we need a fiscally responsible government? Yes We Do!

Is this government a responsible government?

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