By ALISON
ANIS
THE 2010
budget would have a surplus of K533.3 million, 2.1% of the gross domestic
product (GDP), according to current estimates released by Secretary for Finance
and Treasurer Simon Tosali, The National reports.
Tosali said
the estimated surplus was due to the strengthening of global economic recovery
and strong domestic economic growth.
“The
additional revenue of K533.3 available would be spent through a supplementary
budget as government continues to have competing expenditure pressures such as
the LNG commitments and legal obligations,” Tosali told participants at the
three-day national development forum in Port Moresby organised by Consultative
Implementation Monitoring Council (CIMC).
He said
total expenditure was expected to be K7.6 billion this year, with K4.2 billion
in recurrent budget and just over K2 billion
for the development budget.
He
explained the higher recurrent budget in 2010 reflected the expected overspends
in personal emoluments, by national departments and provincial governments.
“The
Department of Treasury has taken action by establishing a payroll project team
to investigate the causes of these overruns … it has also written to the heads
of those agencies seeking their explanations of their overruns,” Tosali said.
On the
development budget, he said the increased development component is for the
payment of remaining business development grants related to the PNG LNG project
while grants and ITC had also increased this year.
Tosali said
total government revenue and grants of K1.8 billion was a lot higher than the
outcome last year and this due largely to the higher receipts from the mining
and petroleum tax (MPT) collected in the first of the year.
The higher
MPT estimate is due to an upward revision to commodity price assumptions.
“PNG’s
economy is expected to strengthen this year with the commencement of PNG LNG
gas project and other mining-related projects as well as a rebound in a number
o sectors following softer conditions last year.
“In
addition, growth is also expected to be supported by the improvement in global
trade as commodity prices of PNG’s major exports strengthens on the back of
growing confidence in the global economic recovery.”
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