Papua New Guinea, propped up by Australia's immigration policy and aid, but still on the brink...
Australia's nearest neighbour could be on the brink of a Greek-style fiscal crisis following one of the most spectacular budget blow-outs in regional history. The projected budget deficit in Papua New Guinea's has been revised up, hitting 9.4 per cent, which is more than double last year's deficit and getting close to the 12.3 per cent figure which helped tip Greece into meltdown last year. The commodities price downturn, worsened by poor oversight of the nation's mining industry, has been brutal to Papua New Guinea's budget. Photo: Jon Reid The budget implosion will come as a shock to leaders in PNG and also Australia, who have consistently played down the impact of corruption and sliding commodity prices. In December the top adviser to PNG Prime Minister Peter O'Neill accused a former Australian Treasury officer, Paul Flanaga