Papua New Guinea Treasury Minister Charles Abel said this when presenting the 20178 final budget outcome report.
The statement presented is part of the requirement of the Fiscal Responsibility Act to report on the final budget outcome within three months of the end of the physical year.
“Following the 2017 National Election the O’Neill coalition Government introduced the 100-day, 25-point plan in response to the mid-year economic outlook report for 2017,’’ Abel said.
“This report highlighted an alarming decline in government revenue against projections and a corresponding increase in wages and interest costs, Government financing was coming under pressure and there was a sustained foreign exchange shortage.”
The LNG boom had not materialised because of the oil price, the drought and subdued commodity prices were being felt, he said.
The 100-day plan was effected primarily through a 2017 Supplementary Budget and the 2018 Budget, Mr Abel said.
“The Government acted with considerable political responsibility to cut the Service Improvement Program expenditure in particular and make other adjustments to the 2017 Budget to maintain its fiscal anchors,” he said.
“The good news from the outcome report is that fiscal discipline has been restored in an overall sense and revenue is on track and improving. Statement