IN an earlier Devpolicy Blog post, 10 criteria were set out for judging the success of PNG’s 2015 Budget. This post makes an assessment against those criteria.
Given the growing economic problems facing Papua New Guinea, getting fiscal policy right in this budget was absolutely vital for PNG’s future.
If you think cuts of 25% in real terms are possible over the next two years leading up to the 2017 election, you may decide to give it a “C”. If you think that expenditure cannot (or should not) be cut by this amount, then you may decide to give it an “E”.
For this writer, despite much that is good in this budget, the medium-term fiscal plans are neither credible nor appropriate. It scores an “E” as it is a significant further step down a slippery economic slope, which will hurt the poor of PNG.