THE Government will spend
over K3 billion on infrastructure development next year, Prime Minister Peter
O’Neill announced Friday.
As the construction phase of the PNG LNG project winds down, economic growth will trend downwards until the export of LNG begins, and Mr O’Neill said the Government was acting to bridge the “gap period”.
“The construction phase of the PNG LNG project has added about 3% growth to the GDP growth that we have been having. With the construction phase winding down now, this 3% growth will drop off.
“We are embarking on this massive infrastructure exercise to bridge this, to ensure growth continues. We are going to fix our roads, our education and health infrastructure and [NO COMMA] our law and order facilities.
“Thousands of workers will leave the LNG project. Our infrastructure program will ensure the workforce leaving the PNG LNG construction phase are utilised and not become idle.
“The massive infrastructure development program will create a deficit in the 2013 Budget, but it is a small and manageable deficit that is within the limits accepted by the International Monetary Fund and the World Bank,” the Prime Minister told the 2012 annual Governors meeting at the March Girls Resort at Gaire Village outside Port Moresby.
The Government’s strategy is to use borrowings to fund the deficit. The deficit will be eliminated once the revenue from the LNG export flows in. Over the years, the surpluses will be captured in the Sovereign Wealth Fund the Government is setting up.
The Prime Minister said the infrastructure program will target roads and ports, health and education and law and order facilities because those are the priority areas which affect the majority of the people.
He told the Governors that for the first time, the National Government will frontload development funds to the provinces and districts starting next year.
“You will be in charge of your own Development Budget in the province and districts. You plan and implement your development programs. The National Government will provide you the resources and support up front,” he said.
Development funds will no longer be sitting in Vulupindi House or Waigani, but sent to the provinces to manage and spend, but under strict guidelines and on specified programs.
Mr O’Neill said Governors were much closer to the people and understood their challenges and development needs better.
He said his Government strongly supported more autonomy for provinces, but the form that empowers the people and involves them in development and economic growth, rather than a form of autonomy that creates chaos and confusion.
The 2013 Budget will be handed down next Tuesday on November 20.
As the construction phase of the PNG LNG project winds down, economic growth will trend downwards until the export of LNG begins, and Mr O’Neill said the Government was acting to bridge the “gap period”.
“The construction phase of the PNG LNG project has added about 3% growth to the GDP growth that we have been having. With the construction phase winding down now, this 3% growth will drop off.
“We are embarking on this massive infrastructure exercise to bridge this, to ensure growth continues. We are going to fix our roads, our education and health infrastructure and [NO COMMA] our law and order facilities.
“Thousands of workers will leave the LNG project. Our infrastructure program will ensure the workforce leaving the PNG LNG construction phase are utilised and not become idle.
“The massive infrastructure development program will create a deficit in the 2013 Budget, but it is a small and manageable deficit that is within the limits accepted by the International Monetary Fund and the World Bank,” the Prime Minister told the 2012 annual Governors meeting at the March Girls Resort at Gaire Village outside Port Moresby.
The Government’s strategy is to use borrowings to fund the deficit. The deficit will be eliminated once the revenue from the LNG export flows in. Over the years, the surpluses will be captured in the Sovereign Wealth Fund the Government is setting up.
The Prime Minister said the infrastructure program will target roads and ports, health and education and law and order facilities because those are the priority areas which affect the majority of the people.
He told the Governors that for the first time, the National Government will frontload development funds to the provinces and districts starting next year.
“You will be in charge of your own Development Budget in the province and districts. You plan and implement your development programs. The National Government will provide you the resources and support up front,” he said.
Development funds will no longer be sitting in Vulupindi House or Waigani, but sent to the provinces to manage and spend, but under strict guidelines and on specified programs.
Mr O’Neill said Governors were much closer to the people and understood their challenges and development needs better.
He said his Government strongly supported more autonomy for provinces, but the form that empowers the people and involves them in development and economic growth, rather than a form of autonomy that creates chaos and confusion.
The 2013 Budget will be handed down next Tuesday on November 20.
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