9 Responses

  1. John Kalu
    John Kalu May 6, 2016 at 4:36 pm

    Thank you Bal for the list.

    Another important concern that can be added to your analysis lists, PNG debt level over the last two years. Huge borrowing from external and domestic funders-estimated debts has gone up to over K25billion (over the limit of 35% allowed under the Fiscal Management & Responsibility Act) with some due for repayment which the government is unable to repay and has gone into co-financing to repay, further increasing the debts.

    Many of the economic decisions taken by the government in the last 2 years or so is outside the annual budget limit, therefore the true picture of the country cash flow is not declared, thus kept to few individuals who take a band aid approach by creating one problem to the next.

    Now PNG have a huge backlog of transactions for foreign exchange while BPNG running out of cash surplus, the recent borrowing of US$300m from IMF to fix the problem will not make much difference.

    Also the 2016 PNG budget of approximately K16 billion was handed down last November with a projected deficit of K2 billion (maybe to be financed through loans). However, with the current debts and cash flow situation, this projection will be beyond PNG capacity to finance its 2016 budget. No wonder, the reported cases of budget cuts made to PNG education and health services this year like the church health partnerships budget cut is a true reflection of this burden.

    The future looks frightening now for PNG.

  2. Werner Cohill
    Werner Cohill April 25, 2016 at 2:14 am

    Mr Kama, I totally agree that the government will want to go to the elections with minor problems on its shoulder, only time will tell.
    On a different note, it was interesting to sit in a tutorial you gave at upng (L19) on the concept of ‘separation of power’. As a political science graduate some years back at upng I was never given this insightful information.
    I am in first year law and I am eyeing constitutional law on ‘constituent power’ as the area of interest.

    1. Bal Kama
      Bal Kama May 5, 2016 at 4:48 pm

      Werner,
      Good to hear that the tutorial at UPNG was of some insight. Some of the issues raised here goes to the heart of the doctrine of separation of powers in PNG.

  3. Lecvi Siba
    Lecvi Siba January 18, 2016 at 5:40 pm

    A good analysis of where PNG stands. Issues affect our country were not addressed & solved while our government continue to plan for the future. I am afraid I may not see the change the government embark to bring this year 2016.

    1. Bal Kama
      Bal Kama January 19, 2016 at 11:17 am

      Thank you Levi. While parts of the article tries to be optimistic, early signs suggest the need for extreme caution on the part of the government in 2016. Will be an interesting year.

  4. Joe Yoba Dame
    Joe Yoba Dame January 14, 2016 at 5:12 pm

    Bal excellent summary of what has happened previous years til last year. There are alot of outstanding issues that you’ve highlighted that need to be resolved.However, your summary has reflected that those issues are not solved properly. My fear is that there will be more coming this year though the Government may think the country may go smoothly. Thank you Bal for your highlighting. Great article to start the year.

    1. Bal Kama
      Bal Kama January 15, 2016 at 11:13 am

      Thank you Joe. Yes, this year will bring with it its own challenges. We can only hope the country work more towards finding the right solutions.

  5. Bal Kama
    Bal Kama January 14, 2016 at 10:37 am

    Thank you Tess for pointing that out. The article is now updated. Regards

  6. Tess Newton Cain
    Tess Newton Cain January 14, 2016 at 8:07 am

    Thanks for this Bal it is a great summary of what we can expect for PNG this year and has certainly helped me get some key issues clear in my mind. One small correction regarding the Vanuatu case you referred to. The number of MPs imprisonedin November was 14 (15 convicted) which constituted half of the government but not half of the parliament which numbers 52

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