Economic update suggests govt budget strategies working
BY FRANKLIN KOLMA
LAST week in Parliament the deputy Prime Minister and Minister for Treasury Charles Abel provided an update on the close of the 2018 accounts, which seemed to indicate that government budget strategies are working.
In front of a host of business and economic elites, Mr Abel reported that under the Government’s debt reduction strategy, the budget deficit has been tracking to close within the allotted amount of K1.89 billion. Furthering that the debt-to-GDP ratio has remained under 31 per cent in accordance with the country’s Fiscal Responsibility Act which dictates a Debt-to-GDP ceiling of 35 per cent. The treasurer went on to try and restore faith in the 100-Day, 25-Point Plan which he said: “Set in train the interventions to improve fiscal discipline, restructure and reduce debt, boost business confidence, and lay the foundations for broadening and growing our economy.”
Mr Abel also spoke against societal entities casting doubt on financial matters of the country stating that we have actually began to achieve some of the goals set out in the plan.
“In 2018 we continued to increase revenue collection, improved our fiscal discipline and, importantly, maintained our fiscal deficit and declining debt targets.
“The Opposition said we delivered a fake budget, with unrealistic revenue targets, they said debt would spiral, they said we would never succeed with a sovereign bond, they said we could not address the forex problem or meet our expenditure commitments but actually, we have,” said the Deputy Prime Minister.
“Revenue is up, debt has been restructured on much better terms, forex reserves have been boosted and progress has been made in clearing outstanding orders.
“The improved revenue and financing outcomes means we have been able to meet most of our commitments on the expenditure side to our citizens, provincial governments and districts.
“We are seeing evidence of an economy that is in recovery, and even showing signs of moderate expansion.”
He re-emphasised that there was a need now more than ever to focus and apply a strict approach to fiscal discipline so as to not lose out on the gains.
This he said in light of the forecasted challenges for this year, what with the LLG elections, the Bougainville referendum, and the prospects of an El Nino drought.
The treasurer made it clear that he was not so much saying that everything is ok as bringing out that there are achievements that are being made by the government that are being overshadowed by hard-line anti-government propaganda.
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