PNG Government's debt hits K16 billion

Papua New Guinea Government’s total debt outstanding in the March quarter was more than K16 billion, Bank of Papua New Guinea says. 
Governor Loi Bakani said debt outstanding was K16.145 billion, which was K789.7 million higher than in the last December quarter.
He said both domestic and external loans haf increased. 
“The increase in domestic debt resulted from new issuance of treasury bills and inscribed stocks, while the increase in external debt mainly reflected the depreciation of the kina,” Bakani said in the bank’s March quarterly economic bulletin. 
He added that as a result of developments in revenue and expenditure, the Government recorded a budget deficit of K405 million. 
“The deficit and net external loan repayments of K63.3 million were financed from domestic sources with K468.4 million.”
He said external loan repayments comprised of K32.9 million, K16.3 million and K14.1 million to concessional, commercial and extraordinary sources, respectively.
“Domestic financing comprised net purchases of Government securities totaling K223.7 million, K285.4 million and K210.4 million by the Central Bank, ODCs (other depository corporations) and OFCs (other financial corporations), respectively. 
“These more than offset K251.1 million payments by other resident sectors, mainly cheques presented for encashment.”
Bakani stated that total expenditure for first three months to March was K1.8 billion, 4.9 per cent lower than in last corresponding period, representing 11.2 per cent of budget appropriation for this year.
“This outcome reflected lower recurrent expenditure, which more than offset an increase in development expenditure,” he said. 
He added that total revenue, including foreign grants, during March quarter was K1.4 billion, 30 per cent lower than receipts collected in last corresponding period.
“This represents 10.1 per cent of the budgeted revenue for 2015. The decrease in revenue mainly reflected lower collections in both direct and indirect taxes and non-tax receipts, which more than offset a slight increase in foreign grants.” The National
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