Posts

Showing posts with the label 2016 Budget

DEFICIT AND DEBT BLOW-OUTS CONFIRMED

Image
by PAUL FLANAGAN

The Final Budget Outcome provides surprisingly frank numbers on the O’Neill government’s inexcusably poor management of government revenues, expenditures and debt.

This document confirms a budget deficit and debt blow-out during 2016. PNG has never before -even during much worse falls in commodity prices – had such an appalling string of huge budget deficits.

The government has no credible path out of the budget mess. Deficit levels are getting larger, not smaller.

PNG Treasury states the debt to GDP ratio is 32.6% and so exceeds the 30% limit set out in the Fiscal Responsibility Act (and using the GDP series when this benchmark was created, it is now 42.7% of GDP).

As a result of the failure to manage this fiscal crisis, PNG’s debt in 2016 is 258% of its 2012 levels. This will be a painful legacy for  PNG’s future as little of the debt blow-out has been properly invested.

The 2016 Supplementary Budget assumed that revenues would increase by K928 million but the FBO i…

GOVERNMENT’S CREDIBILITY WITH INVESTORS AT ROCK BOTTOM: INEPT FINANCIAL MANAGEMENT BY O’NEILL, PRUAITCH AND MARAPE PREDICTS LOOMING ECONOMIC DISASTER

Image
byWILSON TALAG
“For a small country whose economy is heavily dependent on volatile commodity prices to  borrow heavily hoping that commodity prices will remain high is the pinnacle of stupidity.”
Smart investors are not anywhere as dumb as the average Papua New Guinean citizen whenever  Prime Minister Peter O’Neill speaks.   O’Neill can utter complete lies about the PNG economy and government budget to the public and people will take his words at face value.  Foreign investors and the foreign owned private sector in PNG make good money because they are not so gullible.  They check things out and what they have learnt is disturbing.  The Prime Minister himself does not understand this reality and continues to present only information he wants the investors to hear.  But the investors are wise to his tricks and overall investor confidence in PNG has plummeted close to nil if the side comments of investors are to be taken at face value.   


Papua New Guinea’s Prime Minister Peter O’Neill has…

IMF OUTLOOK CONFIRM PNG GROWTH RATE IS 3.1% NOT 9.2% AS BOASTED BY O'LIAR

Image
by MICHAEL.J PASSINGAN

Last month Prime Minister Peter O’Neill publicly stated that the nation’s annual GDP growth rate is 9.2 percent.

He said Papua New Guinea’s growth rate is the envy of many world economies – “9.2% is miles better  than the global average, which is about 3 percent or less”.

That was untrue when he said it, and the Prime Minister knew it to be untrue. The growth rate for the year, according to the 2016 Budget, was 4.2 percent. But in fact PNG’s GDP growth rate at the time Mr O’Neill lied to the people was less than 4.2 percent.

Confirmation of that comes with the release yesterday of the IMF’s World Economic Outlook. That authoritative document estimates PNG’s annual growth rate this year is 3.1%. This is very bad news for Papua New Guineans.

It puts PNG’s GDP growth amongst the lowest in the world. But the accompanying graph shows that the situation is even worse than that. Under the corrupt, reckless and wasteful PNC Regime of Peter O’Neill, national GDP growth …

JUNE 13TH 2016, MARK THAT DATE ON YOUR CALENDAR

Image
byGOVERNMENT INSIDER

The Swiss bank UBS struck a massively controversial deal to land the PNG government with a 10 per cent stake in ASX and PNG-listed company Oil Search. 

The shares as you all know costed PNG A$1.2 billion, a staggering 8 per cent of our GDP. UBS insiders describe this deal as one of the "most amazing deals" the bank has ever done due to the staggering 12.3% interest they are earning from us. 

This rate is well above an average commercial banks interest rate. Others, however, say the amazing part is that the bank was able to get away with it. This lucrative deal, the PM has coerced The National Petroleum Company Board to sign on an Irrevocable Escrow Agreement to keep our 19.4% LNG revenue in a Singapore Bank account as a collateral to the collar Loan, managed/Controlled by UBS According to the Clause 14. 

Of the UBS Collar Loan Agreement dated 12 March 2014, UBS AG Australia Branch will appoint a Receiver Manager to sell the Oil Search Shares and Manag…

PETER O'NEILL LIES AGAIN ABOUT NATIONAL HEALTH FUNDING

Image
Public commentary by desperate health officials last week are aimed at telling the people of PNG that Prime Minister Peter O’Neill is killing the national health system.
The Department of Health is no longer able to help sick people in need of medical assistance, treatment from doctors and medicines.
Only the worst cases can get help from the main hospitals but even Angau , Port Moresby General and other major centres are struggling to do their job.
The cause, say the health officials, is lack of money.
(SEE THEIR COMMENTS HERE IN THE NATIONAL http://www.thenational.com.pg/ (click on the Nation field and scroll to Wednesday May 9 items)
The Prime Minister has stolen so much money for himself and his con men and wasted so much money on borrowing from foreigners that there is nothing left for the health and welfare of the people.
He would rather build useless things in Port Moresby than save his own people’s lives.
THIS IS WHAT HEALTH OFFICIALS SAY: ·The Prime Minister cut the Church Health Ser…

O'LIAR EXPOSED AGAIN IN 2016 BUDGET - TOTAL SPENDING CUT BY 8% - OLGETA MONI IGO WE?

Image
by PAULUS KANAMBO
Peter O’Steal, the biggest liar, thief and konman in PNG history, has been exposed again by new facts revealed about the 2016 Budget.
He said the 2016 money plan was “a conservative budget that carefully manages spending to ensure essential services are delivered to the people. Core services for our grassroots including school fees and access to healthcare will continue to be properly funded.
“Our law and order programs will continue with more funding for police, the courts and correctional services.
“Funding for critical infrastructure will be maintained in order to provide ongoing stimulus for business and for job creation.”
Each and every one of these statements by O’Steal is a lie, as shown by the latest economic research by the prestigious Lowy Institute in Sydney.
THE FACTS ABOUT PETER O’STEAL’S LIES Core services for grassroots have in fact been savagely cut because of O’Steal’s corruption, waste and mismanagement.
Education spending in the 2016 Budget has been cut by…

A Sign of Economic Meltdown Looming Courtesy of O’Neil Regime.

Image
by YAKAN LEPAKALI


This article stems from Sunday Chronicle (July 26 2015) titled “Budget Cut and East Sepik to lose K276 million in 2016”. According to the above article, public machinery in ESP is into crisis management mood to make adjustments and take drastic steps with stringent measures to cut back on unnecessary expenditure and tighten up in readiness for 2016 budget cut.

The article merely featured East Sepik Province; however, same is true with the other provinces in the country. Yet, intriguingly, nothing much is heard from the respective provincial administrations and perhaps waiting for the dream rainfall.

Should K276 million cut in reality is somewhat true for all provinces, it is to the tune of K6 billion plus. We don’t know yet how many national departments and state institutions will have their share of the cut in 2016 budget. It was also speculated that DSIP will also suffer cut courtesy of this ruthless totalitarian regime. The predictability of unprec…