Photo credit: Bim im Garten
By the end of December 2021, the total public (government) debt still due was K48.1 billion, or 51.6% of the nation's GDP.
The present outstanding debt is made up of K25.2 billion from local sources and K22.9 billion from external sources, according to the acting governor of the Bank of PNG Benny Popoitai.
Total government deposits at depository firms rose by K1.3 billion to K5.2 billion, according to Mr. Popoitai, mostly during November and December of 2021.
“This increase reflected drawdowns of external budget support as well as financing from domestic sources,” he said.
According to him, the total domestic credit provided by financial institutions to the public sector, non-profit organisations, and "province and local level governments (P & LLGs)" declined by 0.2% to K17.7 billion from the previous quarter's gain of 0.9%.
According to him, loans to the public and private non-financial firms fell by K205.1 million and K53.5 million, respectively, to K15.6 billion and K1.8 billion.
“The increase in lending to the ‘P & LLGs’ of K224.5 million reflects a reclassification of a loan during the quarter,” he said.
According to Mr. Popoitai, the National Government's budgetary operations in 2021 indicated a deficit of K6.2 billion, down from K6.6 billion in the same time of 2020.
This amounts to 6.7% of the nominal GDP.
According to him, overall revenue and grants in 2021 were K13.8 billion, a 14.6% increase over 2020 and 101.4% of the 2021 Supplemental Budget amount.
“The outcome reflected higher than projected grants from development partners and tax revenue collections, which more than offset lower collections in Other Revenues (Dividends, Statutory Transfers, and Fees & Charges).
Total expenditure in 2021 was K20.1bn, 3.8 per cent higher than the 2020 outcome, and 0.8 per cent lower than the Supplementary Budget appropriation,” he said.
“As a result of these developments in revenue and expenditure, the budget deficit was K6.2 billion which was financed from domestic and external sources totaling K2.6 billion and K3.6 billion, respectively.”
Reference: Post-Courier (15 August 2022). “Govt Debt Sits At K48.1k
