Papua New Guinea's central bank says the country's economy is still growing fast, even though forecast growth levels have dropped from 15.5 percent to about 11 percent.
But the Post Courier reports the Bank of Papua New Guinea's Governor, Loi Bakani, saying the Government has to limit its borrowing to ensure it remains within the 35 percent of GDP required by the Fiscal Responsibility Act.
He says the Government will need a supplementary budget given the decline in revenue caused by falling commodity prices.
Mr Bakani says there are several publications in circulation giving misleading, inaccurate and totally wrong information on the state of the economy.
He said the level of economic activity in PNG will also be adversely affected by the drought.