Cuts needed to combat huge hole in PNG economy - Treasurer

2:16 pm on 1 October 2019

Papua New Guinea's Treasurer, Ian Ling-Stuckey, says the state of the country's economy is far worse than previously thought.

PNG money

Photo: RNZ Pacific/ Koroi Hawkins

Mr Ling-Stuckey, who accepted the job just a month ago, says the former Peter O'Neill Government left a budget deficit of $US1.2 billion.

He said this represented 5.8 percent of the PNG economy and is the worst in the country's history.

The Post Courier reported him saying it means there will be painful cuts across the board in an upcoming supplementary budget.

Mr Ling-Stuckey said not only was the deficit far greater than forecast, but their updates, compiled with the assistance of the International Monetary Fund, show fake estimated earnings of $US726 million.

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