Disappointment after private sector not consulted prior to passing 2024 National Budget

Though the 2024 National Budget is said to be fair, it is described as unfriendly to the business sector.

The business community is concerned there were no consultations prior to handing down the budget.

President of the Port Moresby Chamber of Commerce and Industry Rio Fiocco says the private sector generates income and it would have only been fair to consult them.

“It’s a bit disappointing that from our side that various submissions that we have made to Treasury were not listened to. There could have been a lot more done to make a more business friendly business, cause at the moment it’s not quite friendly for new businesses to come in and that’s why we are not seeing any new direct foreign investment into the country” he said.

Similar sentiments were shared by the PNG Manufacturing Council who fear the impact of the 2024 Budget will put more pressure on inflation.

When speaking at the recent Nasfund FM100 Talkback show on Monday, Chief Executive Officer Chey Scovell says the budget does not reflect the reality.

“In terms of the overall impact on manufacturers, one, will be inflationary so a bit of an issue there on cost but, unfortunately, it’s not so much about what this budget does to the manufacturing sector or the business sector, it’s really about what it hasn’t done. And it hasn’t made Papua New Guinea a conducive place or an enviable place to attract capital investment”.

Mr Scovell goes on to say there use to be a National Budget previously, now it's a member's budget with tremendous focus on service delivery through elected leaders and though it's not a bad thing it makes it difficult from a business perspective.

He says the government spends a record amount of money on agriculture yet no more is produced as cost of production has not been reduced and capacity not increased for consistent surplus of production that's competitive.

Mr. Scovell says "this is a real key issue, noting that inflation is a global challenge at the moment".