2 weeks Ago By postcourieronline
THE International Monetary Fund (IMF) has recommended several measures for PNG to address its high levels of public debt and ensure long-term economic stability. IMF representative in PNG Sohrab Rafiq said the IMF was also recommending that the authorities implement measures to strengthen the management of public finances, including the development of a comprehensive fiscal monitoring and reporting system, which will help the authorities track and manage public spending and ensure that public funds are used efficiently and effectively. He said IMF considered that the authorities’ strategy, which relied on domestic revenue mobilisation, expenditure rationalisation and efficiency gains, and a prudent debt management strategy, was appropriate at this juncture.
In addition Rafiq detailed that IMF was recommending that PNG continue its fiscal consolidation efforts in order to durably reduce the deficit and address debt sustainability risks. The authorities should focus on implementing measures to increase revenue, reduce expenditure, and manage debt in a prudent manner. “Fiscal consolidation efforts should continue in order to durably reduce the deficit and address debt sustainability risks,” he said.
“The IMF considers that the authorities’ strategy, which relies on (i) domestic revenue mobilisation, in line with the new Medium-Term Revenue Strategy, (ii) expenditure rationalization and efficiency gains, including to reinforce expenditure controls, improve expenditure monitoring, and implement a treasury single account, and (iii) a prudent debt management strategy, is appropriate at this juncture,” Rafiq said. “The authorities’ cautious approach to fiscal management, relying on conservative assumptions and clear contingency plans, will also be key in ensuring a successful consolidation.”.
