AUSTRALIAN THINK TANK WARNING CONFIRMS OPPOSITION’S PREDICTION
The PNG Government’s revenue is going to be billions of kina lower, given the drop in global energy and oil prices.
This is from a think tank, a research fellow with the Australian Policy Centre at the Australian National University.
Mathew Dornan says this would create major budgetary crisis for the PNG government.
This means certain key priority areas in the 2015 budget will be cut meaning no funds will be going to those areas.
Mr Dornan said a “certain decision” by the PNG government had inflamed the crisis.
Mr Dornan did not specify “certain commercial decision” but it’s obvious a number of commercial decisions by the O’Neill government happening despite expert warnings and caution from credible institutions.
Among them is the controversial UBS K3 Billion Loan deal which pushed the country’s debt level high to an unsustainable level.
The prediction by the think tank proves what the Opposition has been saying.
The Opposition has been calling for an immediate step to be taken by the government to address the crisis.
The government failed to foresee the looming crisis in the world oil and gas prices, thus bringing down the 2015 budget basing on wild assumption that world oil and gas prices will be steady.
Opposition from time and time has been urging the government to spend within the budget and in general not to mismanage the economy.
Well, the government being ignorant, made several commercial decisions which inflamed the budgetary crisis.
PNG-based business houses are feeling the pinch yet they are keeping a tight-lipped over the issue.
Business Review reported of low forex inflow especially in foreign currencies.
One second hand car dealer has been advised by its bank to limit the purchase of vehicles.
“The company was going to import 30 second hand vehicles from Japan but was advised by the named bank there is a temporary hold on overseas purchase”.
There are other companies feeling the pinch as well.
These are signs and symptoms of economy not doing well. The O’Neill government’s irresponsible decisions, spending on unbudgeted areas had landed the country in this financial situation.
Our economy needs major overhaul.
In the last session of Parliament, government was supposed to introduce a supplementary budget to revise the budget figures amidst the falling oil prices thus affecting our revenue inflow.
The government being irresponsible failed to do so.
The government does not have a clear picture how it will save PNG’s economy.
So the question is, is your government responsible in managing the affairs of the country?
The signs are clear on the wall.
The Opposition is doing its duty under the West Minister system of governance in acting as checks and balances for the government.
The Opposition as an alternate government sees what’s happening in the economy and says, yes we can provide the alternative policies to rescue our economy from taking a nose dive amidst the falling global oil and gas prices.
