23 Dec 2014

PNG Govt confident despite revenue downturn

12:37 pm on 23 December 2014

Papua New Guinea's government says it is confident that its budget assumptions are safe, despite a dramatic fall in global commodity prices.

Members of the Papua New Guinea government, including Treasurer Patrick Pruaitch (centre) and Prime Minister Peter O'Neill (right)

Members of the Papua New Guinea government, including Treasurer Patrick Pruaitch (centre) and Prime Minister Peter O'Neill (right) Photo: RNZ / Johnny Blades

The opposition leader, Don Polye, says the government should review its 2015 budget following the downturn, saying the lower prices will have an impact on gas exports from PNG's landmark LNG project.

But the Finance Minister, Patrick Pruaitch, says there is no cause for alarm.

He has told the Post Courier that the oil price slumped by about 35 percent in less than two months, and it may take the same time for the price to rebound.

Mr Pruaitch says the government is closely monitoring international commodity price trends, and the forecast revenue from the LNG project remains of track because the sale price was locked in to long-term contract agreements.

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