FINAL BUDGET OUTCOME 2020 1. Acronyms ABG Autonomous Bougainville Government ADB Asian Development Bank BPNG Bank of Papua New Guinea CSA Commercial and Statutory Authority DNPM Department of National Planning and Monitoring DSIP District Support Improvement Program FAA Final Available Appropriation FBO Final Budget Outcome GDP Gross Domestic Product GFS Government Financial Statistics GoPNG Government of Papua New Guinea GST Goods & Services Tax ICT Information and Communications Technology IMF International Monetary Fund IFMS Integrated Financial Management System IPBC Independent Public Business Corporation IRC Internal Revenue Commission LNG Liquefied Natural Gas MTDP Medium Term Development Plan (2018-2022) MTFS Medium Term Fiscal Strategy (2018-2022) MTRS Medium Term Revenue Strategy (2018-2022) MYEFO Mid-Year Economic and Fiscal Outlook NEC National Executive Council NPCP National Petroleum Company of PNG NSL Nambawan Super Limited OSPEAC Organisational Staffing and Personnel Emoluments Audit Committee PE Personal Emoluments PIP Public Investment Program PNGDSP Papua New Guinea Development Strategic Plan REVISED BUDGET Budget estimates after Transfers RMF Results Monitoring Framework SIGTAS Standard Integrated Government Tax Administration System SOE State Owned Enterprise SUPPLEMENTARY BUDGET Supplementary Budget as passed in Parliament UBSA Umbrella Benefits Sharing Agreement WPA Waigani Public Account 2. Contents PART 1 ....................................................................... 9 FINAL BUDGET OUTCOME BY FISCAL OPERATIONS .................................................... 9 1.1 General Government Fiscal Operations .............................................................. 9 1.1.1 2020 Supplementary Budget ....................................................................... 11 1.2 Revenue ................................................................................................................... 12 1.2.1 Total Revenue and Grants .................................................................................. 12 1.2.2 Tax Revenue ....................................................................................................... 13 1.2.3 Grants ................................................................................................................. 17 1.2.4 Other Revenue .................................................................................................... 17 1.3 Expenditure and Net Lending ................................................................................. 20 1.4 Financing ............................................................................................................. 29 1.4.1. Net Financing................................................................................................. 29 1.4.2 External Financing ......................................................................................... 30 1.4.3 Domestic Financing ....................................................................................... 31 1.4.4 Debt Service .................................................................................................. 32 1.5 Public Debt .......................................................................................................... 32 1.6 Trust Accounts ................................................................................................... 33 1.7 Government Superannuation Obligation .......................................................... 42 1.8 Government Finance Statistics .......................................................................... 43 1.8.1 Changes between the GFSM 1986 and GFSM 2014 ..................................... 43 1.8.2 Balancing Items ............................................................................................. 44 FISCAL TABLES ..................................................................... 45 Table A: Statement of Operations for the General Government of Papua New Guinea .. 45 Table B: Statement of Sources and Uses of Cash for the General Government of Papua New Guinea..................................................................................................................... 46 Table C: General Government Revenue by Economic Classification ............................... 47 Table D (i): General Budgetary Expenditure by Economic Classification ......................... 48 Table D (ii): General Budgetary Government Expenditure by Economic Classification .... 49 Table E: Transaction in Assets and Liabilities for the General Government ..................... 50 Table F: Stocks in General Government Debt ................................................................. 51 PART 2 ..................................................................... 52 2020 BUDGET OUTCOME BY AGENCY ..................................................................... 52 2.1 Overview .............................................................................................................. 52 2.2 2020 Expenditure Outcome by Category........................................................... 54 2.3 Section 3 & Section 4 Transfers ........................................................................ 56 2.3.1 Section 3 Secretary’s Advance ...................................................................... 56 2.3.2 Section 4 Transfers ........................................................................................ 57 3.0 Attachments ............................................................................................................. 60 3. TABLES TABLE 1: BUDGET BALANCE 2019 – 2020 (KINA MILLION) ................................................................................................ 9 TABLE 2: 2020 SUPPLEMENTARY BUDGET (KINA, MILLION) ............................................................................................... 11 TABLE 3: TOTAL REVENUE AND GRANTS (KINA, MILLION) ................................................................................................. 13 TABLE 4: TAXES ON INCOME, PROFIT AND CAPITAL GAINS (KINA, MILLION) ......................................................................... 14 TABLE 5: TAXES ON PAYROLL AND WORKFORCE (KINA, MILLION) ....................................................................................... 15 TABLE 6: TAXES ON GOODS AND SERVICES (KINA, MILLION) .............................................................................................. 16 TABLE 7: TAXES ON INTERNATIONAL TRADE AND TRANSACTIONS (KINA, MILLION) ................................................................. 16 TABLE 8: DONOR GRANTS (KINA, MILLION) ................................................................................................................... 17 TABLE 9: OTHER REVENUE (KINA, MILLION) ................................................................................................................... 17 TABLE 10: EXPENDITURE BY FUNDING SOURCE 2019-20 (KINA, MILLION) .......................................................................... 20 TABLE 11: COMPENSATION OF EMPLOYEES EXPENDITURE ITEMS (KINA, MILLION) ................................................................. 21 TABLE 12: GOPNG CAPITAL EXPENDITURE BY SECTOR [EXCLUDING DONOR GRANTS AND CONCESSIONAL LOANS] (KINA, MILLION) ..................................................................................................................................................................... 22 TABLE 13: PROJECT SUPPORT GRANTS BY DONOR (KINA, MILLION) .................................................................................... 24 TABLE 14: GOPNG EXPENDITURE BY AGENCY TYPE 2019-20 (KINA, MILLION).................................................................... 24 TABLE 15: GOPNG EXPENSES BY ECONOMIC ITEM 2019-20 (KINA, MILLION) ..................................................................... 25 TABLE 16: SELECTED KEY EXPENDITURE ITEMS 2019-20 (KINA, MILLION) ........................................................................... 26 TABLE 17: 2020 TOTAL ARREARS APPROPRIATION (KINA, MILLION) .................................................................................. 27 TABLE 18: STOCK OF ARREARS RECEIVED IN 2020 (KINA, MILLION) ................................................................................... 27 TABLE 19: TOTAL ARREARS ENDORSED AND PAID IN 2020 (KINA, MILLION) ........................................................................ 28 TABLE 20: YTD COVID-19 EXPENDITURE BY SECTOR AND PROGRAMS (KINA, MILLION) ........................................................ 28 TABLE 21: FINANCING SOURCES 2019 – 2020 (KINA MILLION) ........................................................................................ 29 TABLE 22: EXTERNAL BORROWING AND PRINCIPAL REPAYMENTS 2019 - 2020 (KINA, MILLION) ............................................ 31 TABLE 23: DOMESTIC BORROWING AND PRINCIPAL REPAYMENTS 2019 - 2020 (KINA, MILLION) ............................................ 31 TABLE 24: INTEREST AND FEES – 2019 - 2020 (KINA, MILLION) ....................................................................................... 32 TABLE 25: CENTRAL GOVERNMENT DEBT 2019 – 2020 (KINA, MILLION) ........................................................................... 33 TABLE 26: MOVEMENT OF FUNDS IN BUDGET FUNDED TRUST ACCOUNTS 01-JAN TO 31 DEC, 2020 (KINA, MILLION) ................ 34 TABLE 27: COVID-19 PROVINCIAL SUBSIDIARY TRUST ACCOUNTS AND THE MOVEMENT OF FUNDS FROM 01-JULY TO 30 SEPT,