8 Aug 2012

PNG PM warns of cuts to government departments

12:58 pm on 8 August 2012

Papua New Guinea's re-elected Prime Minister, Peter O'Neill, says some government departments may face cuts after a forecast drop in revenue this year.

According to the National Broadcasting Commission, the Treasury Secretary, Simon Tosali, has informed Mr O'Neill and his caretaker ministers that revenue may fall by about 200 million US dollars.

This is being attributed to a fall in commodity prices and the appreciation of the Kina against the US dollar.

In a meeting with heads of departments, the prime minister has signalled the cuts, saying some departments have not been delivering their desired outcomes to the people, and they will be restructured or abolished.