Prime Minister Hon. Peter O’Neill has called on the Post-Courier to be more careful in reporting economic data after the newspaper reported yesterday that the Government had built up a deficit of close to K400 million.
The article was based on a report titled "New light on Papua New Guinea’s fiscal frailty" by the Vanuatu-based Pacific Institute of Public Policy, which it published after doing an analysis of the PNG Treasury Department’s 2014 Mid Year Economic and Fiscal Outlook Report. Based on the institute’s report, this newspaper reported that the national budget deficit for this year was expected to grow by up to K400 million. However, the institute advised yesterday that the figure was inaccurate and the Treasury Department’s budget deficit estimate for 2014 was K2,353 million as compared to K2,672.4 million which the department is now expecting. But Mr O’Neill said both figures were inaccurate and the Government will be adjusting its 2014 forecast whilst maintaining that there is discipline and there is no increase in the budget deficit. "First this think-tank trying to tell the world that there is an increase in the budget deficit, and second, their figures are simply wrong in any case. In due course there will be adjustments to the 2014 forecast based on updated reporting. There has been some softening in the revenue position, while expenditure is actively reviewed to maintain overall budget targets," he said in a statement last night. "This Government has maintained budget discipline and there is no reason to suggest an increase in the deficit. The Government always planned for a deficit budget this year ahead of accelerated economic growth for the year 2015. This is responsible economic management in that surpluses and deficits, employed at appropriate times, are important tools to grow the economy." The PM described the article published yesterday as "misleading reporting" and said if not corrected could impact on investor and business confidence. "Inaccurate economic reporting can harm business and cost jobs. This morning’s news needs to be retracted and clarified on the front page in the next edition of Post-Courier and not hidden in the back pages," he said. Comments are closed.
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