Budget 2022 tabled with MPs left in the dark
News that matter in Papua New Guinea
Budget 2022 tabled with MPs left in the dark
PORT MORESBY: For the first time in Papua New Guinea (PNG)’s
Parliamentary history, the annual Budget was tabled without the document and
details provided to Members of Parliament (MPs).
Treasurer Ian Ling-Stuckey tabled a K5.9 billion
deficit budget for 2022 (K22 billion in expenditure and K16.1 billion in
revenue), with one of the biggest allocations – K2.5 billion - going to health.
PNG Cyber Monitor reproduces below several key budget
reports as published by The National:
Document
missing
November 26,
2021The NationalMain Stories
By GYNNIE KERO and DALE LUMA
OPPOSITION MPs were left confused yesterday when a vital budget document
which was supposed to provide details of the 2022 national budget, was not
tabled.
Treasurer Ian Ling-Stuckey tabled a K5.9 billion deficit budget for 2022 (K22
billion in expenditure and K16.1 billion in revenue), with one of the biggest
allocations – K2.5 billion – going to Health.
Former treasurer and Alotau MP Charles Abel said without the document called
Volume One, “the budget is incomplete”.
“The physical frameworks, the policy framework and the summary of the budget
which is always contained in Volume One, were not tabled,” Abel said.
“It certainly wasn’t given to us (in) Parliament. So we cannot respond properly
(to the budget) as the Opposition. We are in suspense because we don’t know
what the substance of the budget is. We want the truth so we can comment on it
properly.”
Efforts
to get a comment yesterday on the issue from Ling-Stuckey and Treasury
secretary Dairi Vele were not successful.
But Prime Minister James Marape said last night everything had been printed and
distributed to the MPs.
Opposition Leader Belden Namah, who is expected to make a formal response next
week when Parliament resumes, said the substantive Volume One should have been
tabled.
Shadow Treasurer Joseph Lelang said when budget documents were distributed to
MPs, “the critical Volume One” was missing.
“It contains the policies and plans of the government that shapes the
allocation of K22 billion in terms of public funds,” he said.
“It contains information on the revenue, expenditure, debt financing and how
much to come from external or domestic sources, it contains all the information
on the reforms that the Treasurer (Ling- Stuckey) is talking about in his
speech. We want to know what reforms are contained in the budget.
“They have just introduced tariff measures. We want to know what these measures
are and how they are going to affect our people, and business houses out
there.”
Ling-Stuckey said education and health were priority areas which was expected
to be funded through external (K3.6bil) and domestic (K2.3bil) borrowings.
The projected revenue for 2022 is K16.19bil – up K12.9bil from this year. The
expenditure of K22bil is bigger compared to K19bil this year.
Provincial
funds slashed
November 26, 2021The
NationalMain Stories
Health received K2.5 billion in the national budget announced yesterday,
including K15mil allocated for the nurses’ awards which was the subject of
their recent sit-in protest.
The K2.5bil comes out of the K8.7bil Public Investment Programme funding.
“Papua New Guinea has health issues and the Coronavirus (Covid-19) has exposed
the level of health systems and infrastructure in the country,” Paita said.
The K2.5bil will pay for:
- MEDICAL supplies procurement
and distribution (K200mil);
- HEALTH function grants
(K109.58mil);
- PROVINCIAL Health
Authorities (K132.36mil);
- VACCINES (K10mil);
- FEE-free health care
(K10mil); and,
- NURSES awards (K15mil).
Paita said because of the Covid-19
pandemic, it was agreed that 20 per cent of the K10mil allocated for the
Provincial Improvement Programme (PSIP) and District Improvement Programme
(DSIP) annually would be cut so that K220mil could go to hospitals, including
the 10 to be built.
“MPs allowed us to cut the PSIP and DSIP and we are reinvesting that fund into
the major programmes in terms of health and district hospitals,” he said.
“We are trying to build at least four, five major provincial hospitals.
“We are looking at reestablishing level four hospitals.”
The provincial hospitals will be in Bougainville, Mendi in Southern Highlands,
Tari in Hela and Talasia or West New Britain
Connect PNG
Bill passed
November 26, 2021The
NationalMain Stories
Parliament yesterday passed the Connect PNG Bill 2021 with a funding of K20
billion spread over 20 years.
“This country could have been connected by road years ago (but) past
governments did not see the importance of roads to PNG’s development,” he said.
“I now direct the Department of Works to get to work. The mainland must be
connected by road so that people can drive from the Wutung Border Post in
Sandaun to East Cape in Alotau, Milne Bay.
“I would like to see people from the Momase and the Highlands regions celebrate
our 50th Independence Anniversary in the National Capital District in 2025.”
Marape said the legislation guaranteed 5.6 per cent (equating to Kl billion a
year) of revenue annually to fund the Connect PNG Road Infrastructure
Development Programme from 2020 to 2040.
“We will develop, rebuild, and sustain 16,200km of roads comprising 4,200km of
priority national roads, 1,800km of missing link roads (new roads), 9,000km of
provincial and district roads, and 2,000m of bridges.
“These capital works are equally distributed in all regions so that all our
people have an equal opportunity to participate in development opportunities
generated by these roads.”
Marape urged investors to take advantage of the public investment in roads by
appraising investment opportunities and creating jobs.
“Efficient transportation systems reduce costs in many sectors of the economy,”
he said.
“They provide economic and social opportunities and benefits that result in
positive multiplier effects such as better accessibility to markets, employment
and additional investments.”
The Connect PNG programme began this year and will continue in 2022 with a
total allocation of K710 million.
Downsizing
Govt depts
November 26, 2021The
NationalMain Stories
THE Government has started downsizing
the public service, beginning with the Treasury Department, an official says.
Treasury deputy secretary Napa Hurim revealed this when responding to questions
from Institute of National Affairs’ executive director Paul Barker on what the
Government plans were to cut back on “ghost names” that were on the public
service payroll.
“What is being done to go through the payroll to try to identify ghosts and
areas for cuts?” he asked during the Budget press lockup yesterday.
“We know there is a significant number of ghosts in the public sector payroll.
“If those ghosts are identified then money can be made available to other areas
of expenditure.”
Hurim said they had started on the cleansing exercise.
“You’re quite right that we have some ghost names in the payroll,” he said.
“As part of the payroll cleansing, we have put a lot of effort into that as
part of the retirement exercise.
“That comes as a package, the retirement exercise is not done in isolation.
“We have to go to the payroll and check names and confirm and validate and all
of those things.
“With Department of Personnel Management, Finance and Treasury, and the
relevant agencies, we have been on the road throughout this year conducting
something like the reviews.
“Through that exercise, we have identified names and we are cleaning up the
payroll.
“We have started in Treasury.
“For example, when we adopted a new structure in Treasury, we had new divisions
created but we didn’t move people.
“They were running under different costs.
“Although they were budgeted in one area, they were working in other areas that
was running zero expenditure while the other was running over.
“So part of the payroll cleansing exercise, we had to move the staff across to
the area actually budgeted for.
“We’ve made that correction and it was successful and now we are running this
exercise on a larger scale.
“We have set the pace this year on what we are going to do next year.”
Official
highlights uncertainties
November 26, 2021The
NationalMain Stories
THE Coronavirus (Covid-19) pandemic
has caused a lot of uncertainties in the business community, which will have an
impact on tax generation that will affect Government revenue, an official says.
After Budget presentation yesterday, National Research Institute economic
policy programme leader Dr Francis Odhuno told The National that
it was good, but the only issue that would be faced was revenue.
He said this was because Covid-19 pandemic interfered with a lot of things.
“So we don’t really expect the Internal Revenue Commission and Customs to
collect as much as they wish to collect because we are not too sure about
whether Covid-19 will go away,” Dr Odhuno said.
“There are a lot of uncertainties.
“Those kind of uncertainties are affecting the business plans, so in terms of
tax collections, we cannot be sure how much we are going to collect and whether
it will be enough. That means the shortfall will have to go to the financiers
to borrow some more to fund that deficit.
“And borrowing comes with a cost.
“The interest payments will be high.”
Dr Odhuno said looking at the books, the interest was already high, but he said
“it comes to a point where there is no choice”.
“If you want to fund the development, then you’ll have to borrow some more
money to keep the economy going,” he said.
He added that the other important thing was about the priorities, which was
said to be on Health and Education.
He said there was limitation in infrastructure and also the trainers in the
training institutions.
“I think the capacity of the colleges are full and we might need to talk about
how we’ll increase the number of teachers colleges or nursing colleges,” Dr
Odhuno said.
“The existing ones might be congested already.
“So in the process, we need to talk about how do we train the trainers first
and then bring in students to train.”
Dr Odhuno said training facilities and the trainers should be expanded at the
same time to have more and better qualified people.
“We cannot talk about having more nurses and more teachers when we don’t have
enough of the trainers first,” he said.
IFMS cost
half a billion
November 26, 2021The
NationalMain Stories
“I don’t have a clear figure on how much it cost to set up the IFMS, but since
it was introduced, I am aware that a large amount of money has already been
spent on it,” Sir John said.
“Maybe close to around half a billion kina.”
West New Britain Governor Sasindran Muthuvel raised a series of questions in
Parliament yesterday regarding the IFMS system, distribution of district and
provincial funds and the recent malware attack on the government’s financial
system and its impact.
In addressing the suggestion to revert to the former malware system, Sir John
said that his department had no plans to do so at this time but would advise
Parliament if this changed.
“Going forward, I will inform leaders of parliament if we should choose to go
down that path again, but at the present time we are going to do the best we
can with the present system,” Sir John said.
Muthuvel also suggested to Sir John not to use provincial services improvement
programme fund on government departments in the provinces, which would delay
the funds set aside for appropriation in the national budget.
Sir John replied that as far as provincial services improvement programme fund
were concerned, it was common knowledge among members that those funds were not
for regional expenses.
Internet
costs still high: Masiu
November 26, 2021The
NationalMain Stories
Responding to questions from Alotau MP Charles Abel in Parliament yesterday,
Masiu said that this was evident in the fact that while majority of people in
the National Capital District were experiencing lower 4G data rates through
Telikom PNG, the rest of the people across the country were not.
Abel asked on Tuesday when Papua New Guineans would benefit from CS2 and when
communication agencies such as the National Information and Communication
Technology Authority (Nicta) and PNG DataCo Ltd would provide result in real
reductions of costs for the people.
“Through the CS2, Papua New Guinea has a bandwidth of 20 terabits per second,”
Masiu said. “This capacity is well beyond Papua New Guinea’s forecasted demand.
“It should be noted that previously we were dependent on APNG2 (Australia-Papua
New Guinea 2) cable which is an aging low-capacity submarine cable
infrastructure from Sydney to Port Moresby.
“The deployment of CS2 is to improve internet reliability, speed, quality and
affordability to unlock opportunities for economic growth and connectivity for
PNG through key industries such as tourism and agri-business industries
offering easier access to business and social services.”
Masiu said PNG Dataco should be acknowledged for its efforts to continuously
reduce wholesale price since 2013.
“In 2013, the wholesale access rate was as high as K6,017.45 per megabyte per
month,” he said.
“By mid-2016, Dataco made a reduction to about K1,575.16 per month and from
there it fell further to K601.74 per month in 2017.
“Since the declaration of wholesale services, the maximum wholesale price for
international submarine cable transmission capacity in PNG is determined by the
Nicta.
“In March, Nicta announced a reduction of wholesale price of K209 per month.
“Nicta continues to consult closely with PNG Dataco on the wholesale cost
modeling.
However, my ministry have recognised that CS2 is not a sufficient intervention
for our people to experience lower cost and benefits of a growing digital
economy.
“This is evident in the fact that while the majority of NCD is now experiencing
a lower 4G data rates through Telikom, majority of our people in the rural
areas are still not experiencing the benefits of the Coral Sea Cable.”
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