Prime Minister Hon. James Marape has welcomed Parliament’s passage of the 2026 Supplementary Budget, saying the K1.33 billion Net Increase demonstrates the Marape-Rosso Government’s commitment to protecting Papua New Guineans through extraordinary Fuel, Weather and Cost-of-Living pressures while maintaining Fiscal discipline.

Treasurer Hon. Ian Ling-Stuckey presented the Supplementary Budget and associated Legislation to Parliament yesterday, including Amendments relating to Goods and Services Tax and Income Tax, before Members from both Government  and  Opposition  contributed  to Debate.  The  Supplementary Budget  increases  Forecast  Revenue  and Expenditure by approximately K1.330 billion, lifting total 2026 Government Expenditure to a record K32.245 billion, while maintaining the Forecast Deficit at approximately K1.608 billion, or 1.0 per cent of GDP. Speaking during the Parliamentary Debate, Prime Minister Marape commended Treasurer Ling-Stuckey for managing competing demands during a difficult period and said the Government remained committed to responsible Fiscal Management. “We are very disciplined, trying our very best to tighten our belts,” Prime Minister Marape told Parliament. He said the Supplementary Budget deliberately redirects Resources from areas where funds have not been fully utilised towards urgent National Priorities, while reducing Non-Essential Recurrent Expenditure, Travel and Allowances and deferring selected Projects where necessary.

PROTECTING FAMILIES FROM FUEL SHOCK

The largest intervention is the Government’s K1.110 billion Fuel Relief Package, including at least K1 billion in direct subsidy support and approximately K110 million through lower GST revenue. Prime Minister Marape said the intervention has helped shield Papua New Guineans from the full impact of sharp International Fuel-Price increases associated with instability in the Middle East. “We have maintained and retained a prospect for our people,” he told Parliament, noting that Government assistance on Fuel is expected to reach around K1.3 billion by year-end. “We cannot control the price of Oil internationally or wars taking place overseas, but we can make responsible decisions here at home to cushion the impact on our people,” Prime Minister Marape said. “Fuel affects every family. It affects PMVs, Businesses, Farmers taking produce to market and ultimately the prices people pay for Goods and Services.” The Fuel measures build on successive Household Assistance Packages, which have now reached a combined K4.442 billion since 2022.

K1.165 BILLION AVAILABLE FOR EL NIÑO RESPONSE

Prime Minister Marape said the Supplementary Budget also responds directly to the emerging El Niño Crisis, including drought, frost, food insecurity and water shortages affecting communities across PNG. The Budget provides K500 million in additional National Funding, complementing an estimated K665 million available through District and Provincial allocations,  bringing  potential  combined  El  Niño  support  to  K1.165  billion. Prime  Minister  Marape  stressed  that assistance must be properly targeted according to genuine need and disaster assessments, irrespective of political affiliation.

He specifically told Opposition MPs that their districts were equally entitled to Disaster Assistance where genuine needs existed. “So long as you’re doing work…they’re entitled to ask as much as everyone on this side,” he said. “This is not Government money or Opposition money. This is the People’s money, and when Disaster strikes, assistance must reach Papua New Guineans based on need.”

SAVING WHERE WE CAN, SPENDING WHERE WE MUST

The Supplementary Budget also provides an additional K150 million for Electoral Commission preparations for the 2027 National General Election, alongside more than K50 million for Police and Defence. Prime Minister Marape said the Government was deliberately pursuing a savings culture across the Public Service, including reductions in Non-Essential Travel and Allowances and greater scrutiny of unused Funds. “We must ensure every Kina is put to productive use,” he said. “We cannot ask our people to carry difficulties while Government spends unnecessarily. We must save where we can and spend where we must.” The Prime Minister said PNG’s Economy is forecast to exceed K160 billion in 2026, more than double its nominal size in 2018, while the Government remains focused on reducing Deficits and moving towards a Budget Surplus.

PARLIAMENT PASSES SUPPLEMENTARY BUDGET

Following Debate from both sides of the House, Parliament successfully passed the 2026 Supplementary Budget and associated Legislation, providing the Fiscal Authority required to implement the Government’s revised priorities. Prime Minister Marape thanked Government and Opposition MPs for contributing to the Debate and said the Government would continue listening to concerns raised as preparations begin for the 2027 National Budget, expected later this year. “We carry one country together,” Prime Minister Marape told Parliament, calling on Leaders to ensure National Resources are distributed fairly while maintaining focus on the country’s broader Development Priorities. “This Supplementary Budget is about responding to the circumstances before us—protecting families from Fuel Shocks, responding to El Niño, preparing properly for the National Election, and keeping our Finances disciplined. When our people face difficult times, their Government must stand with them. That is what this Budget does.”

The National Parliament has now adjourned and will resume at 2pm on Tuesday, 13 October, 2026.