Posted on 23 March 2023
Dev Policy Blog have recently released two reports, both drawing attention to Papua New Guinea’s (PNG) high levels of debt, and the unlikeliness the nation will be able to significantly reduce it in the timeframe they hope.
PNG have just released their 2023 budget which aims to work towards a 40% increase in nominal revenue for the country by 2027. However, the country has been described as “addicted to debt”, with debt growing from 27% in 2012 to 50% in 2023.
Both reports ultimately conclude that the road ahead in fiscal consolidation for PNG is tough, and their 2023 budget is unlikely to help reverse this trend to the extent the nation aims for.