Prime Minister Hon. James Marape has announced that Cabinet has agreed to move the delivery of the 2026 National Budget to next week Tuesday, 25 November, returning budget presentation to its traditional day and allowing final fiscal numbers to be completed with accuracy and credibility.
The Prime Minister apologised to stakeholders who had anticipated the Budget this Thursday but said the adjustment was necessary to ensure responsible and transparent budget delivery.
“We want to realign budget delivery back to Tuesdays and give the Opposition full time to read and respond the following week,” Prime Minister Marape said. “Accuracy and credibility in our budget process must always be maintained.”
Strong Economic Fundamentals — K50 Billion Added to PNG’s Economy
Prime Minister Marape said Papua New Guinea’s macro-economic position continues to strengthen, with more than K50 billion added to the economy over the Government’s term.
Independent assessments from the Asian Development Bank, World Bank, International Monetary Fund and the Bank of Papua New Guinea confirm that the economy is on a sustained growth path.
“With growth above 4% this year and another 4% projected for 2026, our economy will surpass K140 billion next year,” he said.“This demonstrates stability and confidence in the reforms we have put in place.”
Debt-to-GDP Ratio Now Below 50% and Falling
The Government has steadily reduced the debt-to-GDP ratio after the COVID-19 period, bringing it below 50% in 2025, with further improvements expected in 2026.
Cabinet has approved a proposal for Treasury to amend the Fiscal Responsibility Act to legally cap debt at 50% of GDP, ensuring responsible economic management for future governments.
“We are governing with restraint and responsibility,” he said.“We are borrowing only within our capacity to repay, and consistent with our medium-term affordability.”
Balanced Budget Expected in 2027 — Fiscal Track Record Strong
Prime Minister Marape also addressed criticisms of the Government’s fiscal record. “Many in the Opposition will raise issues about budget delivery and statistics,” he said.
“But the evidence is in the Final Budget Outcomes for the last 10 years. From 2019 to 2024, we have delivered every budget above expectations. Our revenue and expenditure performance has consistently been above 90%.”
He said that even through economic shocks and the COVID-19 crisis, the Government stayed on course.
“We inherited a recession economy in 2019 but stayed focused through global and domestic hardships.We are not reinventing the wheel — we are following the long-term path set in 2019 and 2020.”
Debt-Free PNG Possible by 2033 — and a K200 Billion Economy
In a major long-term milestone, the Prime Minister said PNG is on track — if current fiscal policies continue — to repay all sovereign debt by 2033.
“If future governments stay this course, the total accumulated sovereign debt since 1975 can be fully repaid by 2033,” he said.
He added that PNG will not only be debt-free — it will reach the economic target first set when his government took office.
“By 2033, we would have gone past the K200 billion-kina economy we targeted, or we would have hit the K200 billion-kina economy that we set in 2019.”
Funding Transfers Now Reaching Key Sectors
The Government is now ensuring that funds released by Treasury and Finance translate into real and measurable service delivery across the country.
He noted that education has been a standout example:
“For the first time in over a decade, all education funds were released by the third quarter this year. This allowed schools to complete their programmes on time.”
Prime Minister Marape again commended the Ministers for Treasury, Finance and National Planning for their leadership during challenging global conditions.
Budget Delivery Next Tuesday
Prime Minister Marape reaffirmed that the Government will deliver a responsible, credible and reform-driven budget next Tuesday.
“Despite global challenges, we are managing with discipline, prudence and confidence in PNG’s long-term economic future,” he said.