Showing posts with the label BUDGET 2018


by PAUL FLANAGAN The new Treasurer released his first budget on 28 November. This was an opportunity to demonstrate the second term of the O’Neill government would help turn the corner on PNG’s economic mismanagement. So how did it do? Overall, there are some wonderful sentiments in this first Abel budget. My sense is that he is very genuine in what he is trying to achieve. But he seems to be let down by the realities of PNG politics. Protecting politicians electoral funds, finding money for APEC, trying to regain the upper-hand on the rhetoric of protecting health and education – all within the confines of fiscal responsibility – was simply too much. What has given way in this equation of trying to be responsible while dealing with the political spending pressures has been revenue credibility? Ultimately, he fails in his attempts to explain why we should believe his claim that revenues will suddenly jump by over 20 percent in 2018. This is an increase of over K2.2 billion and