2015: Building our nation and providing opportunities for our people

The theme of the 2015 Budget is “Building our Nation and Providing Opportunities for our People” and at K16.2 billion, represents Papua New Guinea’s largest ever budget. The budget’s aim is to support continued economic growth by focusing on high impact priority infrastructures, not only at the national level, but also at the provincial and district levels. The budget is designed to give each Papua New Guinean a fair opportunity to participate in the development of the nation.

Key components of the 2015 Budget include:

• The budget will be PNG’s biggest ever at K16.2 billion and is in deficit of 4.4 cent of GDP, lower than the deficit of 5.9 per cent of GDP for 2014.
• Economic growth for 2014 is expected to be 8.4 per cent, increasing to 15.5 per cent in 2015, supported by the first full year of LNG production.
• Growth in the non-mining sector is expected to increase from 1.4 per cent in 2014 to 4 per cent in 2015.
• Inflation is expected to decrease to 5.5 per cent from 5.9 per cent in 2014 and ease over the medium term.
• The Budget’s debt to GDP ratio for 2015 has fallen from the revised 2014 35.5 per cent to 27.8 per cent.
• Inflation is forecast to be 5.5 per cent in 2015, down from the 2014 estimate of 5.9 per cent.
• The 2015 Budget includes five major taxation policy measures as well as a number of minor taxation policy measures including technical amendments, designed to enhance compliance and strengthen the revenue base.