PNG’s acting Prime Minister Puka Temu said there were no more windfall revenues and there would be no supplementary budget this year.
For six years up to 2008, additional revenue from high commodity prices had prompted the government to introduce supplementary budgets to allocate the surplus revenue, most of it going to repaying debts or placed in trust accounts.
But the global financial crisis and the economic meltdown have changed all that, with some experts even warning of cuts to the recurrent budget next year to fund a revenue shortfall of about 30 percent.
In Parliament, Temu said the treasurer had put a stop to additional funding requests from MPs.
Temu said due to the global financial crisis, the treasurer had imposed a strict order instructing cabinet ministers and members of Parliament not to ask for extra funds but to use what was already available to them.
He was speaking during question time in response to questions from Moresby Northeast MP Andrew Mald, who raised concerns in regards to two national roads that run through his electorate from Five-Mile to Nine-Mile on the Hiritano Highway and Five-Mile to Morea Tobo road leading onto the Magi Highway.
Mald wanted the government to provide extra funds to have those roads fixed as their poor condition was proving a hazard for travelers.
In response, Temu said leaders like Mald should use what was available because there would not be any supplementary budget this year due to the global financial crisis.
Temu said the 50 million kina, or $18 million, allocated in this year’s budget for maintaining existing national roads in the country must be used by MPs in fixing national roads running through their electorates and not seek extra budgetary funds.
He said the national government had allocated funds already and it was now up to the responsible members and their provincial administrations to work closely with the works department and the minister in coming up with proper plans and proposals to get the allocated funds.
And he advised MPs to prioritize their spending on key development areas for the remainder of the year.
Temu said that each member had been allocated sufficient funding under the district services improvement program, national agriculture development plan, road rehabilitation and maintenance program and various other programs, to effectively develop their respective areas and, therefore, should use these funds wisely.
The 89 members of Parliament, representing the country’s 89 districts, have 10 million kina, or $3.6 million, each to spend this year.
They are unlikely to get that amount again next year.
