Showing posts with the label DEPARTMENT


by PAUL 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