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Hon. James Marape Government ONE YEAR in OFFICE “Making PNG the Richest Black Christian TAKE BACK PNG! Nation Where No Child Is Left Behind”

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Hon. James Marape Government ONE YEAR in OFFICE “Making PNG the Richest Black Christian TAKE BACK PNG! Nation Where No Child Is Left Behind” PRIME MINISTER Hon. James Marape Government ONE YEAR IN OFFICE “Making PNG the Richest Black Christian TAKE BACK PNG! Nation where No Child is left Behind” INTRODUCTION The change of Government arose from a collective desire to “Take Back PNG” from the hands of people who practice greed, nepotism and cronyism, allowing for only a few individuals, companies, businesses and urban areas to gain at the expense of the vast majority of Papua New Guineans. “Dreams are free; I have dreamt it. But work of reconstruction must start now. Papua New Guinea is blessed with abundant natural resources and it is possible we can get it done in 10 years. The manner of harvest of these natural resources under better term sheets will be my journey and story”, Hon. James Marape, MP, 8th Prime Minister of Papua New Guinea (June 19th 2019). The underlying theme of the Marape-Steven Government is “Make PNG the Richest Black Christian Nation where No Child is left Behind”. The first 12 months focused on eight key areas to operationalise “Take Back PNG” in tandem with solving legacy problems and providing strong leadership on urgent and emerging issues. THE EIGHT-POINT PLAN 6. SOEs reforms � outstanding public servant retirement of K Within the constraints of the 2020 Budget, 7. Amendments to Taxation and Investment 860 million; we introduced a carefully-targeted COVID-19 In February 1973, Michael Somare, the then Promotion Authority Economic Stimulus Package of K5.7 billion of Chief Minister, announced the ambitious Eight- � outstanding service provider costs of K 600 which K600 million constituted: Point Plan that sought to: increase Papua New 8. Public sector restructure million; Guineans controlling a better portion of the � K50 million for price support programme for 9. Resource and resource laws � outstanding office rentals of K 400 million; economy, equalisation and equal distribution of cocoa, copra and coffee; 10. Roads & Bridges and economic benefits, services, and participation � K113 million for district and provincial by our people, emphasise agricultural � outstanding Works’ contracts of K 300 agriculture development and food security developments, grow village trading and internal SOCIAL, LAW AND ORDER SECTOR (SLOS) million. support programme; and trade, emphasise small scale artisan services 11. Higher Education Loan Program (HELP) We have now established an arrears team to fully and business activities, build a more self-reliant 12. Health � K41.5 million for subsidising costs of economy less dependent upon imported goods establish outstanding bills and to better profile business operations (freight and logistics) in and services, increase capacity of Government 13. Internal security sovereign debt with a view to establishing the hope of protecting jobs for Papua New to raise local revenue, equal and more women 14. Law and justice savings and refinancing options capitalising Guineans in MSME businesses losses and on concessions on debt repayments, and participation in economic and social activity, 15. Bougainville boosting economic activities. and Government control of investment in the concessional loans and grants on offer by economy to achieve desired development. credible lenders. ECONOMIC SECTOR These pillar pronouncements resonate and are The Government delivered these programs 2. 2020 NATIONAL BUDGET amplified in the Marape Manifesto. through a two-pronged sectoral approach, The economic sector has sought in the first 12 namely Economic Sector headed jointly by Prime As part of the 2020 Budget, a five-year fiscal months to repair the Budget process, drive The Marape Manifesto is simply “Making PNG Minister Marape and Treasurer Ian Ling-Stuckey, consolidation strategy was developed that agriculture growth, generate job creation, the Richest Black Christian Nation where No and Social Law and Order Sector (SLOS) headed aims to bring debt-to-GDP ratio to below 40 provide a bedrock for MSMEs to grow, drive Child is Left Behind”. The Manifesto unilaterally by Deputy Prime Minister Davies Steven. per cent after breaches in the 2019 Budget reforms in State-owned enterprises to increase outlines that Papua New Guineans must become above the 35 per cent limit. This was due to contribution to GDP growth and private sector equal participants in their natural resource In tracking implementation, we are pleased to an expensive sovereign bond borrowing from expansion, and grow exports. harvesting, engage in SME opportunities, enjoy provide the following progress report under the Credit Suisse in 2018, which was not used to quality education and health system, and protect following categories: retire debt and arrears. We had to amend the The Marape-Steven Government is refocusing the growth of economy in a safer environment. Fiscal Responsibility Act to accommodate this economic priorities to jobs for our people, not It is all tailored for PNG to be economically major breach. just a resource focus. The focus is on inclusive independent and not wholly dependent. BUDGET jobs for growth, moving to honest budgeting, We delivered the 2020 Budget, which was moving to investment and away from the The Manifesto emphasises on citizens to be Fiscal policy, when timed well in an appropriate before COVID-19, and based on concessional operating budget (public service salaries and healthy, have Christian principles and ethics, policy mix with monetary policy, will deliver loan borrowings and along policy-based reform goods and services), moving to good and cheap and respect for rule of law. the best growth results both at macro- and matrix monitored by both the IMF and Asian international financing, and balancing out urban micro-economic levels. Using good budgeting Development Bank (ADB) to achieve the right The PNG Vision 2050 also sought to biased development of the past. deliver consistent and purposeful gains for approach, the Marape-Steven Government lifted results from recurrent and capital expenditures. ordinary Papua New Guineans based on the the GDP growth rate from a recession minus 0.8 We also delivered a COVID-19 Stimulus Package 3. AGRICULTURE AND MSME POLICY Independence aspirations. It emphasised the per cent in 2018 to 5 per cent in 2019. The focus of K5.7 billion focused on supporting the private importance of global trade and anticipated new is also on non-resource growth rates which are sector and rural economic livelihoods. Because Supporting micro small and medium enterprises global disease patterns in its deliberations. endorsed by the International Monetary Fund of the positive rating from global bench (MSMEs) is at the core of our Take Back PNG (IMF), which will deliver domestic growth from markers of good governance, local institutions strategy. Budget allocation of K200 million was “One Year in Office” outlines the Marape-Steven 2.9 per cent in 2020 to 4.6 per cent by 2024. We oversubscribed the Bank of PNG-issued COVID made out to the Department of Commerce and Government’s major achievements under the have also ensured that the share of the National Bond, an initial amount of K1.8 billion of K2.5 Industry in 2020. To date, we have successfully two pronged approach: Economic Sector and Budget going to capital/development budget billion. negotiated lower loan repayment rates from our Social Sector achievements. increased from K4715 million in 2019 to K6281 commercial banks: million in 2020. This major structural change in 2.1. MANAGING COVID-19 WITHIN BUDGET the Budget will continue. CONSTRAINTS � 5 per cent for 15 years at Bank South Pacific; POLICY BASED PROGRAMMES AND COVID-19 shook the world and presented our � 4 per cent for 25 years at National ACHIEVEMENTS—ECONOMIC AND 1. 2019 SUPPLEMENTARY BUDGET Development Bank; and SOCIAL SECTORS Government with a major Budget shock, but The first significant Policy Document the we took proactive steps to prevent its spread, � 4 per cent for 20 years at Kina Bank. The Marape-Steven Government, after taking Marape-Steven Government procured was the resulting in PNG hitherto having recorded zero office, instituted the following policy-based 2019 Supplementary Budget. The Government deaths and with only eight cases compared to In supporting this Government’s flagship programs that form the core of the 2020 Budget. delivered 95 per cent of the 2019 Budget after over 350,000 deaths globally. We shut down programme in agriculture, we have also They are being operationalised by the public revising the Mid-Year Economic and Fiscal our international borders and closed domestic progressed the following actions: Outlook (MYEFO), and despite the onslaught flights. We tested over 4000 cases and procured service, State-owned enterprises, provinces, � Revamped Kumul Agriculture Ltd as a SOE districts, and private and civil sector: of recession in 2019. We undertook due Personal Protection Equipment (PPE) and diligence on the 2019 Budget and established testing kits with the support of our international through State Equity Funding in partnership the platform for the Supplementary Budget friends. with National Agriculture Research Institute BUDGET and revealed a budget blow out of K 2.263 (NARI) to bolster Agricultural Investments. 1. 2019 Supplementary Budget billion. This represented K987 million in revenue 2. 2020 National Budget (Economic Stimulus shortfall and K1.275 billion in over expenditure. Package) We then retired the O’Neill-Abel Government liabilities and commitments that were simply left “... Papua New Guinea is blessed with abundant unsettled and left in the cupboards of over 500 ECONOMIC SECTOR Government agencies including courts. Some of natural resources and its POSSIBLE we can get it 3. Agriculture and MSME Policy these include: 4. Connect PNG � outstanding workers’ pay rise of K 122 done in 10 years...” - PM Marape 5. Special Economic Zones (SEZ) million; ECONOMIC & SOCIAL DEVELOPMENT � Approved K340 million European Union � Telikom and BMobile (EU) grant to support smallholder famers lowered Internet rates in in East and West Sepik to produce vanilla, 2019 for more cheaper calls coffee, palm oil, livestock, cocoa, spice and and more date rates.
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