Govt To Toughen Fiscal Regime, Control Exports
BY GORETHY KENNETH
The O’Neill Government will now toughen its fiscal regime to control depleted resources going out of the country without any record, Deputy Prime Minister Charles Abel said last Friday.
Mr Abel said that for far too long, the Government has had no control nor database on all resources leaving the country like gold, copper, logs, fish and others and that is one reason why the country’s economy has declined despite PNG being so rich in resources.
The Government has put in place measures to address this part of which is included in the 100 day 25-point plan.
Together with these, Treasury Minister Abel said that it was important that the government hit the ground running that it articulated its longer term plans but also respond to some specific issues that were happening to the country’s economy both today and in the long term.
“We going to maintain our very best for fiscal discipline,” Mr Abel said. PNG during the past five even going back 10 years has enjoyed some excellent economic growth
“The country has benefitted greatly from different factors. We had the boom in the commodity prices that is to the previous government from 2007-2012, we enjoyed commodity boom and we had surplus budgets and we enjoyed good growth that, following that we came into the construction phase of the PNGLNG, that stimulated a lot of growth into the economy, then of course after that phase, the O’Neill government undertook this big expansionary fiscal policy that is government in anticipation of gap between the construction phase and the receipts of our exports in 2014.
“We deliberately went into a series of deficit budgets we wanted to create that resource envelope to get the investment going to economy going and generate returns to our country – to create jobs and we went through that phase and of course we came across particular circumstances that have resulted in the slow-down of that extraordinary economic growth that we had.”