28 Nov 2014

PNG PM defends budget deficit

4:52 pm on 28 November 2014

Papua New Guinea's Prime Minister Peter O'Neill has defended his government's budget deficit strategy.

The flag of Papua New Guinea.

The flag of Papua New Guinea. Photo: Supplied

After the 2015 budget was passed earlier this week, the opposition MP Don Polye criticised the government for allowing the budget deficit to extend to around 880 million US dollars or 5.9%.

However Mr O'Neill says that his government had always planned to run a deficit from last year until 2017.

He says people know his government's strategy is working because the government is investing the deficit into key sectors like health, education, infrastructure and law and order.

"And that is starting to produce results. The outcomes.. in terms of education, we've got one million more kids in school; we've got healthcare facilities now being rolled out all throughout the country where people never saw medicines, nurses and doctors for the past 40 years; and the infrastructure of roads, ports and airports are being expanded all throughout the country."

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