Low commodity price affects gov’t revenue

Caption: Kairuku Hiri MP Peter Isoaimo.

 By PATRICK SAKAL

CURRENT low commodity prices experience in the world market has affected the government’s revenue to allocate funds to all the electorates around the country.

Open member for Kairuku Hiri said much of the funds are not going down to all the electorates because the country is in critical situation.

He said in the eleven months Papua New Guinea as a country has gone through financial crisis because the country is a global player trading in US dollars.

“Therefore, when the commodity prices dropped we have seen a reduction in more than 50 percent or more of the prices for the agriculture and mineral commodities that we trade on.

Our budget is relied heavily on oil and gas prices when it was trading on US$120 (K433) and dropped to US$26 (K78).

We are no exception to that and the government was forced to borrow some money external through banks in Europe and Asia which the doom Sayers says it is a bad president for the country’s economy,” Isoaimo said.

However, he said it is a managerial issue the government has taken in order for to pop up the economy to be financially stable.

We as the responsible government, we want fair disbursement of limited budget allocation so that in our electorates.

He said like in the case of Kairuku- Hiri electorate he has thinly spread the District Support Improvement Program funding everywhere in the two districts.

“That is the only fair way of getting funds over to the people,’’ he said.

“We have given little bits of funds here and there to the much needed areas of development in the electorate.”

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