Posts

Showing posts with the label BUDGET 2017

FRIGHTENING GOVERNMENT PERFORMANCE IN 8 KEY AREAS OF THE ECONOMY

Image
NATIONAL BUDGET SPOOKS PRIVATE BUSINESS AND INVESTMENT IN PNG

byWILSON TALAG Economist Paul Flanagan's recent remarks that appeared in PNG Blogs and elsewhere highlight 8 key areas of what looks to be looming financial disaster.  Mr Flanagan's enlightening report is the basis for this discussion and why the performance of each one of the key areas has started to  spook business and investors.  The seriousness of PNG’s current financial situation is becoming very clear.   A little over a week ago the government came very close to failing to come up with the year end public servant pay.  This near disaster occurred despite supplementary budgets designed to avoid such unexpected money shortages.   Another red flag flying high and warning that behind the scenes, PNG's finances are rapidly deteriorating under the O'Neill government.

The 8 key areas of concern are (1) Government lies over the actual size and growth of the PNG economy, (2) Discrepancies  over GDP economic gro…

2017 BUDGET BLUES - K40 MILLION SLUSH FUND ALLOCATED FOR PM's PERSONAL USE

Image
by PNGBLOGS

Prime Minister Peter O’Neill’s greed and corruption is on show again in the 2017 Budget, with K40 million allocated for his personal use.

The slush fund is a new allocation, under the Treasury and Finance Miscellaneous category, entitled Prime Minister’s Commitments. Also in this category is K3 million for “PM’s Official Staff Determination Payouts”.

Treasury and Finance Miscellaneous can be viewed on Page 187 of Volume 2a, 2017 Budget Estimates of Revenue and Expenditure for National Government Departments http://www.treasury.gov.pg/html/national_budget/files/2017/Vol2a-Revenue%20and%20Expenditure%20National%20Govt%20Depts.pdf

No details of the new slush fund have been given. No reference was made to it in the Treasurer’s speech. No details are available of who or what the K40 million is to be spent on. There is no evidence of any acquittal requirements.

This is a slush fund pure and simple and the Prime Minister and his Treasurer are trying to keep it secret.

Treasury an…

PNG’S 2017 BUDGET – FISCALLY FRAUDULENT

Image
byPAUL FLANAGAN PNG’s 2017 budget was a key opportunity to demonstrate the credibility of the government’s economic management before next year’s election.  It fails. Foolish games with numbers and unrealistic assumptions severely undermine the budget’s credibility (detailed examples on the revenue and expenditure side are provided below). Indeed, the level of deception arguably approaches fraud. This preliminary assessment of the budget documents will be updated over the next few days.  Hopefully more good will be found in the detail. A major winner from the budget are overseas petroleum shareholders with proposed cuts in the company tax rate from 45 or 50% down to 30%. This will be of particular joy to Oil Search and others that will gain from a new possible Papua LNG project – but they are possibly accessing the lower rate for condensate already. PNG’s tax regime for the petroleum sector was already considered generous relative to world standards – it now will be even more so. And …

A SPECIAL REPORT ON THE 2017 BUDGET TO BE HANDED THIS WEEK - A BUDGET STRUCTURED FOR FAILURE TO KEEP PNC IN POWER

Image
by JASON P KANGOMA

Treasurer Patrick Pruaitch is scheduled to hand down the 2017 Budget in Parliament this week. Given that 2017 is election year, the Budget is certain to be dominated by the usual O’Neill Regime spin and deceit, along with wasteful and irresponsible spending measures.
But the central feature will be drastic cuts to essential social services such as health and education, and further suffering for ordinary Papua New Guineans.
Every successive O’Neill Budget has been a failure, creating more problems than they solve, and driving the nation further towards total collapse.
This special PNG Blogs report reveals the ongoing damage Prime Minister Peter O’Neill’s corruption, greed and mismanagement is doing to Papua New Guinea.
POVERTY INCREASING UNDER O’NEILL REGIME The new announcement by the O’Neill Regime that it has obtained a K1 billion rescue package from the Asian Development Bank proves that Prime Minister Peter O’Neill’s economic and financial policies are continuing to …