K10.3m debt repayment omitted in Budget 2019
THE Opposition last night demanded the urgent recall of Parliament to correct what it claims was a serious anomaly in the 2019 budget which did not include passage of K10.3 million required to repay PNG’s debts.
Shadow Treasurer Ian Ling-Stuckey said unless this failure is fixed urgently, the government does not have the legal authority, as provided for under the Constitution, to make loan repayments.
“From January 1, 2019, PNG would immediately start breaching our loan agreements with our external partners such as the Asian Development Bank, the World Bank and Credit Suisse,” he said. “It also means that there is no legal authority to pay back Treasury Bonds and Treasury Inscribed Stock.
“As the major holders of this debt our banks and superannuation funds, this could put a major stress on our entire banking and superannuation system.
“This extraordinary and incompetent oversight by the Treasurer must be rectified for the safety of our economy and to honour our loan commitments and reputation.”
Mr Ling-Stuckey described Treasurer Charles Abel as incompetent because he forgot to appropriate the extraordinary K10.351.8 million required for debt services amortisation.
“This is a constitutional requirement, that funds paid out of our accounts are approved by Parliament – it is a standard part of the Appropriation (General Public Services Expenditure) Bills,” he said.
“How can anyone in this Parliament vote to pass illegal appropriation bills, and ones that forget to pass nearly 40 per cent of all required expenditure?
“I understood there was a need for K10.3 million extra.
“However, looking at the detail again there is an actual shortfall in the budget appropriations of K11.1 million specifically K11,116,302,969 in debt service costs.
“Funds have been provided for debt interest costs, but not been provided for principal repayments – also known technically as amortisation.
“Imagine how much trouble you’d get into with your bank if you said sorry, can’t repay all the mortgage this year because I forgot to do some paperwork.
“This careless omission must be corrected. The alternative government demands the urgent recall of Parliament.
“If the government does not act to correct this extraordinary oversight, the alternative government will consider pursuing legal avenues to protect PNG’s reputation as a country that repays its debts and ensure that no risks are imposed on our financial system.”
The post K10.3m debt repayment omitted in Budget 2019 appeared first on Post Courier.
Terima kasih karena telah membaca informasi tentang K10.3m debt repayment omitted in Budget 2019 . Silahkan membaca berita lainnya.