PNG announces record K30.9 billion budget for 2026
The Treasurer Ian Ling-Stuckey in parliament today announced a total expenditure budget of K30.9 billion in 2026, compared to K28.3 billion for this year. That’s an increase of K2.6 billion.
For this year’s total expenditure budget, the Government expects to collect K29.3 billion in revenue, leaving a budget deficit of K1.6 billion.
Treasurer Lin Stuckey said this is the smallest deficit in many years.
He said PNG is still on track to reach a budget surplus by 2027, meaning the country will earn more money than it spends.
The Treasurer says government will need more revenues and do not want to increase taxes.
“In 2026, good progress is being made to lift our revenues. We have been working hard, through better policies, such as the Dividends policy compelling the Kumuls [Referring to SOE'] to pay more, and through a modernized and simplified new Income Tax Assessment Act.
“These policies have been supported by increased operational funding support for IRC, which has increased from K102 million in 2024, to K144 million in 2026, and Customs, with the budget increasing from K123 million in 2024 to K129 million in 2026.
“Indeed, in 2026, our domestic revenues are expected to be 18.8% of our GDP. This is higher than our revenue target of 17.9% by 2027 set out in our Medium-Term Revenue Strategy.” the Treasurer said.
Meanwhile, Ling-Stuckey says even with the big budget, the funding is still not enough. He says on average, the Government spends only K2,882 per person, which is not enough to fully support education, health, policing, and roads.
He also said the country is still recovering from economic problems caused by the former government before 2019.
“In contrast, to the earlier years, through fiscal discipline and more importantly, political stability, the budget deficit, has fallen dramatically, from 8.9% of GDP in 2020, down to 1.1% in 2026.
“Our debt is now growing much slower, than our economy. This means that our debt to GDP ratio, will drop significantly from 48.4% in 2025 to 45.5% in 2026, and expected to fall to 42% in 2027.
“All of this budget repair and falling debt ratios, is occurring, while PNG is benefiting, from record rates of non-resource economic growth and inflation well below historic levels.”
The Treasurer said PNG’s economy is growing steadily where non-resource sectors like agriculture, transport, and retail still growing every year.
“From 2021 to 2026, PNG is forecast, to benefit from its longest run of sustained real growth, in the non-resource economy, of over 4% in its history.”
He said living standards are expected to rise above 2014 levels in 2025 and 2026.
Ling-Stuckey said the Government will continue improving revenue, reducing waste, and investing in services that help ordinary people.