Papua New Guinea - Public finance



Papua New Guinea receives most of its bilateral aid from Australia, which donates about $200 million a year in assistance. Foreign budgetary support was phased out in 2000; aid is now concentrated on project development. Other major sources of aid include Japan, the EU, China, Taiwan, the UN, the Asian Development Bank, the IMF, and the World Bank.

The US Central Intelligence Agency (CIA) estimates that in 2000 Papua New Guinea's central government took in revenues of approximately $849 million and had expenditures of $1.1 billion including capital expenditures of $344 million. Overall, the government registered a deficit of approximately $251 million. External debt totaled $2.6 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

Papua New Guinea

REVENUE AND GRANTS 100.0% 849
Tax revenue 76.6% 650
Non-tax revenue 3.8% 32
Capital revenue 1.1% 9
Grants 18.5% 157
EXPENDITURES 100.0% 1,100
General public services 7.4% 82
Defense 3.3% 37
Public order and safety 7.0% 77
Education 21.8% 240
Health 6.2% 68
Social security 2.0% 23
Housing and community amenities 2.4% 26
Recreation, cultural, and religious affairs 0.6% 7
Economic affairs and services 19.9% 219
Other expenditures 15.4% 169
Interest payments 14.0% 153
Also read article about Papua New Guinea from Wikipedia

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