The seven new electorates have been included in the Supplementary budget of 2022 which captures revenue from reviewed tax measures, plus surge in global oil prices, versus a K611 million Household Assistance Package.
“We have major increase in net revenues as well as the need for specific appropriations such as, K160 million school project fee subsidies announced as part of our household Assistance package,” Treasurer Ian Ling-Stuckey said in parliament.
The Supplementary budget is framed following the country’s election aimed at continuing the promise by government to steer the country to the Prime Minister’s dream of “becoming the richest black Christian nation.”
“There is also the need to provide additional funding for the seven (7) new districts that have been created and K3million each has been provided,” he said.
This is Ling-Stuckey’s fourth Supplementary Budget since being elevated to the Ministry and one that is still framed amidst pressure from external economic conditions.
“(Budget) is framed in what the IMF (International Monetary Fund) calls, the ‘gloomy and uncertain‘ outlook for the global economy, however, there are promising economic times ahead for PNG.
“PNG is experiencing by far its highest growth rate, in the Kina size of our economy in its history,” the treasurer added.
While the announcement may seem as welcome news for many, the real pressure of the rising price of goods and services is still being felt by the average Papua New Guineans.
“As highlighted in the comments on MYEFO (Mid Year Economic Fiscal Outlook) report, we must make sure, that positive macro economic news, does not blind us to the pain being faced by many families,” he said.
The priority areas of government expended through the K611million Household Assistance include:
- K250 million for continued removal on tax on all fuel products.
- K126 million for school project fees.
- K135 million from Tax collection
- K100 million for subsidizing household commodities.
Tax measures are again a key feature in the 2022 revised money plan, this time with cuts in Personal Income Tax for all wage earners.
“I was pleased that from 1 June 2022, all wage earners paying tax are receiving up to an extra K42.30, in their fortnightly pay packets,” Ling-Stuckey said.
He also noted the Additional Profits Tax which was supposed to be implemented on the banking sector, has not been implemented.
“For some reason, the tax cuts have not been processed, through the ALESO pay (roll) system”, the Treasurer said.
Another initiative of the Pangu led government is to subsidize household items.
“In April, we announced, that arrangements will be made by IRC with local firms, whereby firms would lower cost on key items such as flour, tinned fish, rice and OX and palm and in return they would be granted an equivalent reduction in taxes,” Ling-Stuckey said.
The assistance, however, took time to implement earlier this year because of the need for several legislative changes.
“We apologize for the delay…we will be watching closely the performance of IRC in this area, to ensure the changes are put in place this year,” he said.