20 Nov 2013

PNG's Treasurer forecasts 6.2% for next fiscal year

5:30 am on 20 November 2013

Papua New Guinea's Treasurer Don Polye has delivered the 2014 national budget, forecasting a growth rate of 6.2% for the next fiscal year.

The optimistic outlook comes as Mr Polye announced a 15 billion kina, or 5.6 billion US dollar, budget, up two billion kina from the previous budget.

Our PNG correspondent, Todagia Kelola reports from Port Moresby:

"The 2014 budget will comprise a deficit of 2.3 billion kina, or 5.9 percent of GDP. The budget also contained an increase in development and capital high priority programmes funding. Basically that is to address the country's capacity constraints. It has also increased service delivery funding to support medium term development pointers or enablers and meet government obligations. It's also made in a way to continue support to provinces and districts and local level governments. Also it will perform structural reforms."

Todagia Kelola reporting.