Morauta says PNG Budget not credible

8:13 pm on 6 December 2017

A political veteran in Papua New Guinea says the government is looking for an easy way out of an economic crisis it has created through waste, mismanagement and corruption.

Port Moresby

Port Moresby Photo: RNZI/Johnny Blades

Former prime minister, Sir Mekere Morauta, who is now an opposition MP, said the 2018 Budget, released last week, was not credible and was laden with fabrications.

Sir Mekere, who is also a former central banker and economist, said the government was raiding and crippling state owned enterprises for quick cash.

He said the SOEs were sick, due to rising debt, poor investment decisions and earlier dividend raids.

Sir Mekere Morauta

Sir Mekere Morauta Photo: Post Courier

He said squeezing already struggling businesses and inflicting hefty tariff increases that push up prices was not a solution.

Sir Mekere said to have a credible budget the government had to first fully disclose the state of the economy - the debts, the arrears and the foreign exchange shortages.

He said the revenue figures needed to be realistic and tough choices made on spending and spending cuts.

The former leader said it needed to be a properly thought out multi year programme, supported by concessional finance and an IMF balance of payments support programme.

PNG parliament

PNG parliament Photo: AFP

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