RECORD CASH BALANCES IN DISTRICTS AND PROVINCIAL ACCOUNTS.

ADB APRIL 2025 OUTLOOK

by Hon. Ian Ling-Stuckey, CMG. MP

Minister for Treasury

Port Moresby

13th April, 2025

Once again, time to deal with lies and talking down the economy by the Opposition, with some facts.

As at 31 March 2025, there were record levels of cash sitting in Provincial and District Trust Accounts. Specifically, K4, 008,722,950 according to last week's report from the Department of Finance to the weekly Budget Management Committee (BMC).

Over K4 billion!

In March 2025, these cash balances increased by K592 million.

In just one month, an increase of nearly K0.6 billion in cash balances in government accounts.

How is this a “cash crisis”?

More specifically, the Chuave District Trust accounts had K13.7 million sitting idle on 31 January according to Department of Finance reports.

It is time for our Opposition spokesperson to start attending to the development needs of his chuave district, rather than trying to undermine the country with his constant and mischievous VONCs and misleading information.

The Opposition doesn’t trust the Treasury, BPNG, or the IMF.  How about the Asian Development Bank?  In its latest Asian Development Outlook released last week, the following comments were made about PNG.

“Fiscal consolidation continued in 2024. Considerable progress has been made in mobilizing domestic revenue, estimated to have reached 18% of GDP in 2024 from about 14% in 2020. Expenditure restraint has continued, with controls on both recurrent and capital spending.

“The non-resource sector continued to perform well. Average growth in non-resource sector more than doubled to 5.1% between 2022–2024 from the previous decade’s 2.4% average (2012–2021).

“Inflation eased to 0.7% in 2024, lowest level in recent years. While exchange rate depreciation exerted some inflationary pressure, it was offset by several factors."

Budget repair underway. Growth in the non-resource sector, where over 90% of our people earn their living, is starting to improve. Inflation is at a historic low.

Of course we need to do more, continuing to help with cost of living pressures, creating more jobs, lifting incomes, improving law and order, continuing with our ambitious capital investment program, and getting rid of too much red tape.

"However, all independent economic experts are clear that PNG’s economic performance over the last six years is unquestionably, so much better than the O’Neill years.

"With the risks of a global trade war looming, much better to keep Government in the safe and trusted hands of the Marape-Rosso Government, than risk the negativity and lunacy of Nomane.