Prime Minister Hon. James Marape on Tuesday, 6 May 2025, welcomed the new Minister for Finance, Hon. Thomas Opa, during the Government’s weekly Budget Management Committee (BMC) meeting, calling on him to be a responsible and prudent steward of the nation’s finances.
Minister Opa’s first attendance at the BMC comes at a critical time as the Government seeks to consolidate its fiscal position, reconcile 2024 expenditures, and realign the 2025 Budget to deliver tangible outcomes for the people.
Prime Minister Marape expressed concern over the practice of carrying forward unfunded 2024 expenditure into 2025, cautioning that this undermines planned delivery for the current financial year and places additional stress on government cashflow.
“We cannot continue the dangerous habit of spending this year’s money on last year’s programmes,” Prime Minister Marape said. “This practice not only distorts our fiscal reporting but starves critical 2025 development programmes of much-needed funding. We must draw the line now and move forward with fiscal discipline.”
The Prime Minister stressed that detailed revenue and expenditure figures will be finalised once the 2024 Final Budget Outcome (FBO) is completed. In the interim, the focus remains on transitioning fully into 2025 expenditure execution.
Instructions have been issued to Treasury to deliver the 2024 FBO at the earliest possible date to allow the Government to personalise and refine the 2025 money plan. The overarching macroeconomic priority is fiscal discipline, with a firm commitment to fiscal consolidation.
Prime Minister Marape noted that the 2024 Budget projected a narrowing of the fiscal deficit, and reconciling 2024 expenditures remains critical to ensuring that the 2025 budget is implemented with integrity and sustainability.
He instructed the Departments of Finance and Treasury to:
• Freeze further payments for 2024 expenditures unless contractually or constitutionally bound;
• Finalise the 2024 Final Budget Outcome (FBO) and make it available for Cabinet and public scrutiny;
• Migrate all legitimate and ongoing programmes into the 2025 fiscal plan;
• Account for trust fund holdings and direct unutilised funds back into the budget cycle;
• Prioritise the clearance of aged cheque floats, which remain a significant cash management issue.
Prime Minister Marape also emphasised the importance of provincial service delivery and directed that provinces with no internal revenue be prioritised for recurrent budget disbursements.
He acknowledged the past underperformance of some multi-year programmes and instructed the Department of National Planning to reschedule the Medium-Term Development Plan IV (MTDP IV) timelines to allow for recovery and catch-up funding in 2026.
“Our flagship programmes like Connect PNG, tuition fee-free education, and provincial hospital upgrades remain Government priorities,” said Prime Minister Marape. “We must be disciplined to finance programs that deliver positive outcomes.”
He concluded by encouraging all departmental heads and central agencies to provide timely, accurate data and reminded the committee that achieving national development goals requires whole-of-government coordination.
“My job is to point direction, but it is your responsibility to work prudently and within law and budget.”
Prime Minister Marape also thanked outgoing Finance Minister Hon. Miki Kaeok for his service and reiterated that the country’s fiscal consolidation and debt management strategies must be maintained as part of responsible economic stewardship.