18 Sep 2013

PNG Treasurer says fiscal outlook moderately better

6:35 am on 18 September 2013

Papua New Guinea's Treasurer says the government is taking care not to add to the planned deficit, following a budget blow-out of 60 million US dollars.

Don Polye attributes the blowout to salary payments to non-existent workers and excessive employment on the government payroll.

The 2013 Budget projected a fiscal deficit of 7-point-2 percent but this is now out to 7-point-7 percent.

But Mr Polye says that the projected GDP growth has been revised upward from 4 percent.

"It's been revised upward in our midyear economic and fiscal midyear outcome outlook report to 6-point-1 percent.Out inflation has been brought down from 8 percent projection to 6 percent. So we have moderately done a little bit better than what we envisaged in our projections for this year."

Papua New Guinea's Treasurer Don Polye.