Prime Minister Hon. James Marape has welcomed the presentation of the 2026 National Budget by Treasurer Hon. Ian Ling-Stuckey today, describing it as one of the most responsible, forward-looking and people-centred budgets in our nation’s history as we mark 50 years of Independence.
The K30.9 billion Budget, delivered under the theme Security with Growth, outlines a comprehensive plan to strengthen law and order, expand economic opportunities, boost service delivery, and provide targeted relief to households while maintaining the most disciplined fiscal path the country has achieved in more than a decade.
“This Budget demonstrates that Papua New Guinea is on the right path,” Prime Minister Marape said. “We are stabilising the economy, reducing debt, strengthening security, supporting families and unlocking unprecedented non-resource growth. I thank Treasurer Ling-Stuckey and the economic ministries for delivering a credible, disciplined and people- centred Budget. Together, we will build a stronger, safer and more prosperous Papua New Guinea as we enter the next 50 years.”
A Budget that Reflects PNG’s Journey at 50 — And Its Vision for the Next 50 Years
Prime Minister Marape said the 2026 Budget must be understood in the broader national context of PNG@50 — half a century of independence followed by a decade of reforms, restructuring and economic stabilisation.
“Fifty years ago, we inherited a nation with limited resources and no modern economy. Today, after navigating difficult inherited conditions, global shocks and natural disasters, Papua New Guinea has entered a period of stability and sustained growth. This Budget represents our commitment to building a secure and prosperous nation for the next 50 years.”He said the Budget continues the Government’s reform direction under the 13-Year Fiscal Strategy, Medium-Term Development Plan IV and the Reset PNG@50 agenda.
Record K30.9 Billion Budget Maintains Disciplined Fiscal Repair
Total expenditure is K30,913 million against revenue of K29,306million, delivering a deficit of just 1.1% of GDP — the lowest in more than a decade and a dramatic reduction from the pandemic-era peak of 8.9% in 2019–2020. Debt-to-GDP is forecast to fall from 48.4% in 2025 to 45.5% in 2026, continuing the downward trajectory toward 42% in 2027, which would place PNG among the lowest in the Asia-Pacific region.
“This is a turning point,” the Prime Minister said. “We are growing our revenues faster than our expenditures. We are repairing the Budget without imposing new taxes. We are increasing the size of our economy while reducing the size of our deficit. This is what responsible government looks like.”
The deficit has fallen from K4.8 billion in 2015 to K1.6 billion in 2026 — a shift from 9.4% of GDP to 1.1% — reflecting five years of disciplined management and unprecedented political stability. Revenue is projected to grow by 15.3%, outpacing expenditure growth of 9%, demonstrating fiscal restraint and allowing the deficit to continue falling next year.
No New Taxes — Continued Relief for Households
Prime Minister Marape reaffirmed that the Government has not introduced any new taxes. Instead, it has maintained or expanded a range of household-support measures including the K20,000 tax-free salary threshold, GST removal on 13 essential goods, continued removal of school project fees, full Government tuition support, stamp duty exemption for first-home buyers, reduction of the banking levy and a continued indexation freeze on beer and selected tobacco products.
“These supports help families without compromising fiscal stability,” he said.
Strongest Non-Resource Sector Growth in PNG’s History
The Prime Minister highlighted that PNG is experiencing six consecutive years of above-4% growth in the non-resource sector — the longest and strongest period in national history. Non-resource sector growth rates were 4.2% in 2021, 5.9% in 2022, 4.7% in 2023, 4.5% in 2024, 4.6% in 2025 and 4.4% in 2026.
This sustained growth is driven by agriculture, retail and wholesale, transport and logistics, SMEs, services, hospitality, construction, manufacturing and utilities.
“The economy is forecast to reach K145 billion in 2026, K200 billion by 2030, K300 billion by 2035 and K1 trillion by 2048. Income per capita is projected to reach K9,137 in 2026, surpassing 2014 levels for the first time. All indicators point to positive growth.”
Prime Minister Marape said the diversification strategy initiated in 2019 was now paying dividends. “COVID-19 affirmed to us not to rely only on oil, gas and gold. These numbers show that the non-extractive economy is now driving our growth.”
Security, Law and Justice: Laying the Foundation for a Safer PNG
The 2026 Budget prioritises restoring safety, lawfulness and public confidence. Major increases include K761 million for Police, including a 34% increase in operational costs and a 19% increase in wages; funding for recruitment towards the 10,000-officer target by 2030; a 19% increase for the Judiciary; a 29% increase for Defence goods and services; a 10.6% increase for Correctional Services; a 60% increase over two years for the Office of the Public Prosecutor; a 36% increase for
Magisterial Services; a 34.5% increase for ICAC; and a 47% increase in LLG Leaders’ Allowances.
“Security is the foundation of growth,” the Prime Minister said.
Record Investments in Health and Education
The Health Sector receives K3.205 billion, a 15.8% increase, including K88 million more for Provincial Health Authorities, a 73% increase for vaccines, over 40% more for malaria, TB and essential medicines and a 22% increase for Church Health Services.
The Education Sector receives K4.935 billion, an 11.3% increase, including an additional K251 million for teachers’ salaries, K45 million for Tuition Fee and Project Fee subsidies and increased support for TESAS and HELP.
Infrastructure Government Delivers a Historic K7.7 Billion Capital Programme
The Public Investment Programme totals K7.697 billion. Key priorities include K1.7 billion for Works and Highways, expansion of the Connect PNG network, airport and maritime upgrades, and new investments in power, water and digital services.
“Every new road brings markets, schools, health centres and economic opportunities,” the Prime Minister said.
K1.010 Billion Household Assistance Package
The Budget includes GST-free status on 13 goods, K175 million for school Project Fee subsidies, maintenance of the K20,000 tax-free threshold, stamp duty exemptions for first-home buyers and continued indexation freezes. Over five years, the Government has delivered K3.3 billion in household support.
Provinces and Districts Receive Major Funding Increases
There is a 44% increase in Provincial Functional Grants, a 30% increase in GST and Bookmakers Tax distributions and major increases to teacher salary support, PHAs and tuition fee subsidies.
A Budget Built on Teamwork, Delivery and Accountability
Prime Minister Marape said the success of the Budget will depend on agencies, provinces, districts and LLGs implementing funds effectively. He called on Section 32 officers to translate allocations into visible development outcomes, including roads, hospitals, schools and essential services.
A Confident Step Into PNG’s Next 50 Years
Prime Minister Marape said the 2026 Budget shows a stable Government delivering a disciplined fiscal strategy and a growing, diversifying economy.
“This is a good story for our country. As we step out of PNG’s 50th year, this Budget positions us for a safer, modern and more prosperous future.”