In spite of the present political instability in the country, the Port Moresby Chamber of Commerce and Industry and Deloitte have triumphantly held the 2021 budget breakfast, attended by the business community in Port Moresby.
The Prime Minister and the Treasurer usually attend the meeting but there were no government ministers around to take questions.
The budget debate emphasized information important to the business community.
Asian Development Bank Public Finance Economist Abhimanyu Dadu said that 7.3 per cent deficit 2021 of the government is also a wide fiscal deficit which is because of the strategy of the government of increasing capital expenditure to support the growth of the economy. He added that he is not sure how this will be financed.
He noted that with the 2021 budget, spending and borrowing policies of the government, a wider consultation is needed which supports fiscal stimulation not dependent on the fiscal framework on the program.
Meanwhile, Credit Corporation chief executive officer Peter Aitsi added that the budget's success depends on these elements.
“The budget will need discipline in its delivery to ensure the planned expenditure is able to achieve the government’s objective,” he said. “Government’s ability to fund the budget – to be able to raise the forecast revenues and also secure borrowings to meet the deficit and government’s success in securing large scale foreign investment to further accelerate domestic efforts toward economic recovery,” he stressed.
Mr Aitsi said that these elements all these factors along with being able to manage the political pressures can bring about a successful budget.
