PNG’s debt to gross domestic product sits at K25.8billion

PNG deputy Prime Minister and Treasurer Charles Abel. Picture: POST COURIER

PORT MORESBY, 02 APRIL 2019 (POST COURIER) – Papua New Guinea’s debt to GDP sits at K25.8 billion (US$7.6 billion) for the year 2018.

This is 31.1 per cent which is within the fiscal strategy of the government, according to the Deputy Prime Minister and Treasurer Charles Abel.

Abel said the debt to GDP is still within the Fiscal Responsibility Act and is under government’s target.” Our fiscal responsibility act allows us to move up to 35 per cent but our idea is to keep it at 30 per cent and below.

“This month the National Statistical Office will be publishing some numbers to the 2015 and 2016 GDP and there will be some slight changes there which may affect some numbers.

The main reason for these adjustments is that the International Monetary Fund has come up with a new way of calculating GDP and the problem is that is like when somebody change the rules in soccer, the ratio changes and because we are being so compliant with our own ratios and when someone changes the rules it can cause a few problems,” he said.

He said they accept these changes and are expecting those figures to come out on April 10 and will be incorporating them going forward.

“They are not published yet. It will not change our numbers, for example our revenue to GDP will go up but the K25.8 billion remains.

All in all, things are not bad as everyone was saying if we can have a good year in 2019 we can continue to deliver resource projects and manage our costs will be very good.”

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