Welcoming 2026 – Resetting at 50, Securing Growth and Preparing the Nation Forward
As we welcome 2026, I extend my warm New Year greetings to all Papua New Guineans at home and abroad.
The year 2025 was a defining moment in our national history. It marked 50 years since Papua New Guinea became a sovereign nation, and the 50th Christmas since Independence. It was a Golden Jubilee that invited deep reflection—not only on how far we have come as a people, but also on the responsibility we carry as we step into the next phase of nationhood.
In the lead-up to Christmas, I took the opportunity to thank Papua New Guineans across the country, our public servants, and our international partners for your patience, resilience and cooperation throughout what was a demanding—but ultimately productive—year. Your contribution, whether at worksites, in communities, in business, or through government and development partnerships, has been vital to keeping our nation moving forward.
Economic Stability in a Challenging Global Environment
Despite global inflation, rising fuel and food prices, and supply chain disruptions beyond our control, Papua New Guinea’s economy demonstrated resilience and discipline in 2025.
My government delivered the largest tax relief package in our history, removing GST from 13 essential household items and lifting the tax-free threshold to K20,000. This decision
deliberately sacrificed more than K300 million in government revenue to ease the cost-of- living burden on families and workers. Yet, even with this relief, revenue performance remained strong. The Internal Revenue Commission collected 97 per cent of its total revenue forecast for 2025, with collections already K700 million higher than the same period last year, while Customs exceeded its target, collecting more than 100 per cent of forecast revenue.
This outcome shows that our fiscal reforms are working. It gives confidence that the Government can continue to fund essential services without placing additional tax pressure on ordinary Papua New Guineans.
The 2026 National Budget – Security with Growth
As we enter 2026, the first full year beyond our Golden Jubilee, our national direction is anchored in the 2026 National Budget, framed under the theme “Security with Growth.”
This Budget is not just an annual financial plan. It is a bridge between the first 50 years of our independence and the next 50 years of our national journey. It consolidates the progress made since 2019 and sets a clear path toward a more secure, stable and prosperous Papua New Guinea.
At its core, the 2026 Budget is about balance—balancing household protection with economic growth, balancing security with opportunity, and balancing today’s needs with tomorrow’s responsibilities.
The Budget continues our disciplined path of deficit reduction and responsible debt management, while directing limited public resources to sectors that have the greatest impact on people’s lives.
Key priorities of the 2026 Budget include:
Protecting households and easing the cost of living.
More than K1 billion is committed in 2026 alone to household support through tax relief, GST exemptions on essential goods, school fee assistance, and targeted support for low-income families and those in the informal economy.
Strengthening law, justice and security.
Security is foundational to growth. The Budget continues unprecedented investment in policing, courts, village courts, defence and correctional services, recognising that businesses will not invest and communities cannot thrive without safety and the rule of law.
Investing in health.
The 2026 Budget delivers the strongest health allocation in our history, supporting hospitals, rural health facilities, medicines, workforce recruitment and specialist services. Recent milestones—such as kidney transplants and heart bypass surgery performed locally—demonstrate that sustained investment is producing results.
Prioritising education as the single largest sector.
Education receives around 16 per cent of total national expenditure, the largest share of the budget. This supports free education, teacher recruitment, Second Chance education for those who previously dropped out, and overseas scholarships in Science, Technology, Engineering and Mathematics (STEM). Education is how we secure the next 50 years of our nation.
Continuing Connect PNG and national infrastructure.
The Budget sustains investment in roads, bridges, airports, ports, power and telecommunications. With nearly 80 per cent of our people living in rural areas, connectivity remains central to lowering the cost of living, improving service delivery and uniting our country.
Supporting agriculture, SMEs and the non-resource economy.
The Budget continues to strengthen agriculture, small and medium enterprises, and rural livelihoods, ensuring growth is broad-based and inclusive, not dependent solely on extractive industries.
The 2026 Budget is aligned with Vision 2050, MTDP IV, and our Reset@50 Roadmap, with the clear objective of achieving a balanced budget by 2027, stabilising debt and protecting future generations.
Infrastructure, Aviation and Nation-Building in Practice
Across the country, infrastructure development continued at scale in 2025 and will intensify in 2026.
Road connectivity remains central to our development strategy. When people can now drive from Kupiano to Alotau, or from Tabubil to Telefomin, this is not theory—it is nation-building in action. Roads connect farmers to markets, children to schools, patients to health services and communities to opportunity.
In aviation, works continue at major airports, alongside the modernisation of Air Niugini through the introduction of Airbus A220 aircraft. Aviation is not a luxury for Papua New Guinea; it is a lifeline for health, education, trade, tourism and national unity.
Resetting at 50 – Reform, Meritocracy and Accountability
As part of our Reset@50, 2026 will be a decisive year for institutional reform.
The Government will embed ICT and artificial intelligence systems in public service recruitment and government procurement. If you want a job, you apply online. If you want a government contract, you apply online. The best must get the job. These reforms will reduce human interference and strengthen meritocracy, transparency and efficiency.
Ministers and departmental heads have been directed to account for their performance, with a renewed focus on delivery, discipline and results as we enter the final full year of this parliamentary term.
Preparing for the 2027 National General Election
Alongside development and reform, the Government is also preparing responsibly for the 2027 National General Election.
We are working closely with the Electoral Commission, security agencies and other state institutions to support voter enrolment, logistics, polling and counting arrangements, and the safety of voters, candidates and election officials. Our responsibility is not to influence outcomes, but to ensure a peaceful, credible and orderly election, where the will of the people is freely expressed and respected.
A Call to All Papua New Guineans
However, government alone cannot build this nation.
If you are unsure what you can contribute, begin by respecting the law, respecting one another, and living by the values that bind us together. Resolve disputes peacefully, avoid violence and excess, reconnect with your communities, attend church, and support unity through dialogue and mutual respect.
As we step into 2026, let us refocus and reset together. With discipline, unity and shared responsibility, we can build a stronger Papua New Guinea—one that honours the sacrifices of the past 50 years and creates opportunity for the next 50.
Happy New Year, and may God bless Papua New Guinea.