Policy reforms that strengthen legal frameworks will help Papua New Guinea (PNG) boost nontax revenues, says the latest issue of the Asian Development Bank’s (ADB) Pacific Economic Monitor (PEM).
“Subdued economic growth of 2% in 2023 is largely due to foreign exchange shortages, 20%–30% lower sales in various sectors, and a weakened contribution to growth from mining, one of the economy’s largest sectors,” said ADB Country Economist for PNG Marcel Schroder. ”PNG has become heavily reliant on revenue from its natural resource sector and is wisely embracing policy reforms to allow the government and statutory bodies to transparently and accountably share nontax revenue.”
The PEM says the Non-Tax Revenue Act of 2022 sets clear guidelines for handling and remitting nontax revenue, including dividends, fees, and charges, to the national budget, promoting transparent and accountable revenue sharing between the government and public and statutory bodies.
The PEM is ADB’s biannual review of economic developments and policy issues in ADB’s 14 developing member countries in the Pacific. In combination with the Asian Development Outlook (ADO) series, ADB provides quarterly reports on economic trends and policy developments in the Pacific.
