Media Statement
Approved for Immediate Release Wednesday 16th August 2023
“This Treasurer continues to practice propaganda and blame those who came before him. He is a modern spin doctor without any actual tools or strategies to move our country forward economically,” continued the former Prime Minister.
“He talks about economic growth and how all is well when the MYEFO report prepared by professionals in Treasury Department states on page 19, GDP has fallen from 4.30% in 2022 to now just 3% in 2023 owing in large part to the closure and continual uncertainty surrounding Porgera Mine.”
“Let us remember that GDP growth has little bearing on the people who do not trust the flowery words of the Treasurer but only know the sick feeling in their stomach when they cannot afford the high cost of basic foods like rice, flour and tin fish or they go looking for a job to support their family but there are no jobs to come by.”
“The MYEFO reports to a downgrade of GDP growth from 4% just a few months ago to now 3%, inflation growing faster than the economy at 5% plus and debt has breached the Fiscal Responsibility Act, but according to the Treasurer all is fantastic.”
“The MYEFO report is factual and sobering. The professional economists of Treasury Department have prepared a MYEFO that tells the situation honestly. I thank the public servants for their continuing diligence.”
For instance, on page 60, the MYEFO states
“Given the ongoing vulnerability of PNG to external stocks, inflationary pressure will remain. Further escalation of the war in Ukraine would potentially increase inflation to elevated levels, which would continue to raise the cost of living. The Government would need to further policy tightening that would result in tighter financial conditions which would potentially crowd out growth prospects. Commodity prices are expected to ease from their historical highs in 2022 as supply improves. Hence the revenue generated from commodity prices will come lower than expected, consequently affecting Government’s revenue base.”
“The facts are that the Government has overspent and over borrowed during the highs of the Global commodity boom of 2021 and 2022 and saved nothing for a rainy day.”
“The Marape Government has not grown the economy. It has borrowed heavily to spend in non-productive parts of the economy.”
“The facts are the Government is borrowing big to spend big while the people suffer. The only thing the Treasurer can be proud of the massive increase in taxes being collected from the very citizens suffering because of his mismanagement of our precious resources,” said Mr. O’Neill
“While IRC and Customs have been busy working, the Treasurer and his Prime Minister have been very busy spending. Total budget expenditure in 2023 is forecast to bust the budget ceiling to reach a record 26.181 billion against the budget estimate of K24.566 billion.
This Treasurer is a reverse Robin Hood, collecting from the poor and giving to the rich. He should hang his head in shame and instead he continues the blame-game instead of working hard on strategies and policies that are productive and positive.”
“I once again applaud the professionals in the Treasury Department for their factual MYEFO. I encourage the Bank of PNG to follow suit and bring the Monthly and Quarterly Economic Reports up to date. The last BPNG monthly economic report was published in March 2023 and the last Quarterly report was in September last year?”
“We cannot rely on the propaganda of the Treasurer as our country falls further behind economically overburdened by debt, overspending and overtaxing,” concluded Mr.O’Neill
Hon. Peter O’Neill, CMG, MP
Member for Ialibu-Pangia
Party Leader, People’s National Congress Party
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