Brutal PNG Budget 2016

[Tree]

Essentials appear safe from brutal PNG budget

Updated at 8:38 am on 4 November 2015

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Health, education and infrastructure spending appear to be safe from funding cuts after Papua New Guinea's government yesterday announced a massive drop in revenue and major cuts in its 2016 budget.

The treasurer, Patrick Pruaitch, says a collapse in global commodity prices has seen the government's mining and petroleum revenue fall from an estimate of US$579 million to just US$100 million.

Overall, the government has suffered a 12 percent drop in revenue, and Mr Pruaitch says the government expects economic growth to fall from 9.9 percent to 4.3 percent.

Our correspondent in PNG, Todagia Kelola, says the government is hoping to cut about 470 million dollars of expenditure.

"There will be major cuts in many, many areas, but priority areas like health and education remain the same. And also the provincial support improvement programme has been increased. So this big increase in provincial funding should help improvements in all types of public infrastructure."

[Getitrt2]

It would seem that the PNG budget crisis might make it more difficult for them to "back into" the Papua LNG project, but I assume they will borrow more for that if they have to. They have an extreme need for significant recovery in oil and gas and other commodity prices in the next couple of years.

[Thylacine-2]

" They have an extreme need for significant recovery in oil and gas and other commodity prices in the next couple of years."

Yeah, I can relate to that.

[jft310]

PNGLNG plant cost was $19 Billion . Citi states Papua LNG costs $12.9 Billion plant build estimated .
If you liked PNGLNG your going to love Papua LNG .
Or the amount of money the government needs will be less to buy into the project . Would the other partners cover the governments buy in?? And get paid back out of future production . Or will government sell a slice of one of these plants ????or both ..,

[Getitrt2]

Perhaps Total would provide a loan, but not IOC I don't think.