28 Aug 2002

Papua New Guinea government to slash operating budgets

4:35 pm on 28 August 2002

The Papua New Guinea government is to present its supplementary budget of over 205-million US dollars this afternoon.

Finance minister, Bart Philemon, is to present the budget which is necessary because of a growing deficit.

Meanwhile....the Public Service minister, Dr Puka Temu, is warning that government departments and provincial governments are to have their operating budgets slashed.

The warning follows an announcement that MPs and senior management in the public service face a 15 percent pay cut after the unions rejected a ten percent pay cut across the board.

Dr Temu says tight financial control is needed in these areas due to the worsening state of the economy.

"That's basically where we are going to maintain a lot of discipline and there will be drastic cuts in the levels of funds that would normally be allocated for operations, and unfortunately, all of us will have to tighten everything until December."

PNG's public service minister, Dr Puka Temu.