PNG opposition says budget deficit level illegal

2:38 pm on 18 December 2015
Papua New Guinea opposition leader and Kandep MP Don Polye.

Papua New Guinea opposition leader and Kandep MP Don Polye. Photo: Papua New Guinea opposition

The Papua New Guinea opposition says its analysis shows the country's debt level is far higher than the government announced in the 2016 budget.

The opposition leader Don Polye says PNG's debt is US$7.16 billion dollars or more than US$700 million above the figure given in the budget early last month by the finance minister James Marape.

And the opposition also contests the size of the economy, saying it is a lot smaller than the government claims.

Mr Polye says this means the budget deficit is 47 percent and way beyond the 35 percent maximum set by the Fiscal Responsibility laws.

Earlier this year the government said its fiscal strategy had been endorsed by the International Monetary Fund.

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