1.4 BILLION DEFECIT FACED IN 2024

By Nigel MADO

Papua New Guinea faced a significant revenue shortfall of K1.4 billion in 2024, primarily due to lower-than-expected collections from non-tax revenue sources, Treasurer Ian Ling-Stuckey revealed in Parliament.

In response to a series of questions from Kandep MP Don Polye, the Treasurer Ian Ling-Stuckey detailed the fiscal challenges, stating that while tax revenue performed strongly, non-tax revenue collections from state-owned enterprises (SOEs) and statutory agencies fell well below projections.

He said in the 2024 budget, the Internal Revenue Commission were projected to collect 16,158 million kina adding that the 2024 outcome, not the final budget outcome, the numbers still need to be finalised.

So if I can provide that disclaimer today, IRC collected 16,094 million kina, a shortfall of 64 million kina from the 16,000 million they were tasked to collect, so a pretty good outcome.

He said they had budgeted for K2.49 billion in non-tax revenue, but only collected K1.19 billion, leaving a K1.29 billion short. This shortfall contributed to the government’s difficulty in disbursing funds to various government departments and provincial administrations.

The Treasurer reassured Parliament that despite the revenue challenges, the government remains committed to maintaining fiscal discipline and executing its budget plans.

Despite an overall government revenue shortfall, tax revenue collections in 2024 nearly met their targets, according to Treasurer Ian Ling-Stuckey.

The Treasurer stated that the Internal Revenue Commission (IRC) and PNG Customs performed well, collecting a combined total of K18.58 billion against a projected K18.69 billion – a shortfall of only K119 million.

In contrast, it was the non-tax revenue component that did not do well according to Ling-Stuckey.