2014: Consolidate gains for sustained growth through prudent investments

The theme of the 2014 Budget is “Consolidate Gains for Sustained Growth Through Prudent Investments” and represents Papua New Guinea’s largest budget ever. A central theme of the budget is the Government’s ongoing commitment to growing the country’s future by making key investments focused on inclusive and sustainable growth for all.

Key components of the 2014 Budget include:

• The 2014 budget will be PNG’s biggest ever at K15 billion.
• Economic growth is projected at 6.2% in 2014, up from the 2013 estimate of 5.1%.
• In 2014 the main sectors expected to drive growth are oil and gas, extractive industries, agriculture, personal and social services sectors.
• The 2013 Budget deficit of 7.9% has been reduced to 5.9% in the 2014 Budget. The Budget is expected to return to surplus from 2018.
• The Budget’s debt to GDP ratio is 35 per cent in 2014, reducing to below 30 per cent over the forward estimates.
• Inflation is forecast to be 6.5% in 2014, up from the 2013 estimate of 4.0%.
• As with the prior year, the 2014 Budget continues to recognise the significance of the PNG LNG Project as a driver of economic growth.
• No new taxes were introduced.