Transcript
The Supplementary Budget includes almost 1.5 billion kina of spending cuts which the Treasurer admitted is an extraordinary level of cuts to be made so late in the year.
But Mr Ling-Stuckey said the new government of James Marape has opted for full transparency and reform following what he described as eight years of economic mismanagement by the former O'Neill government.
He said the cuts would be shared equitably across the budget, including a 83 million US dollars (286 million kina) cut to the service improvement programmes for districts and provinces.
"Some of these decisions are very likely to be painful.But I want to show the people of Papua New Guinea that these decisions are central to take back PNG economy.
"The NEC (National Executive Council) avoided cuts to the health and education sectors as much as possible with only 13 percent of cuts in these sectors."
The opposition's finance spokesman, Joseph Lelang, said the cuts to basic services will hurt PNG's rural majority, claiming that blow-outs in the recurrent budget over many years should have been more of a target for fiscal measures.
"With due respect to the prime minister, cutting of DSIP (District Service Improvement Programme funds) and PSIP (Provincial Service Improvement Programme funds) is political suicide. What could be more important, Mr Speaker, that we have to cut funding that are earmarked for rural development where a majority of our population live? This and funding for vital service should have been protected at all times."
The most scathing criticism of the supplementary budget came from the man who Mr Ling-Stuckey has pinned much of the blame for PNG's ailing economy on.
Peter O'Neill claimed that cutting the district service improvement funds will mean many children miss out on an education.
The former prime minister complained that while the Treasurer billed the cuts as reducing deficit levels, expenditure had gone up.
"One-point-nine billion kina increasing expenditure and the cuts of 1.5 billion in key services that are supposed to be aimed at leaving no child behind.
"When you cut education, when you cut health, when you cut all the police and judiciary, you are affecting key services that are going to be serving our people and our children."
However, Mr Ling-Stuckey told the house it was important to make hard decisions to help PNG in the long run.
He said $US87 million (300 million kina) in public works arrears would be deferred until next year to allow Treasury officials to establish a proper vetting process with the Department of Works.
"To ensure only genuine and valid invoices are paid. But other forms of deferred expenditure are picked up, such as delayed payments for infrastructure in Bougainville and increased disaster relief funding."
According to the Treasurer, a big reduction in the cost over-runs of the O'Neill government in 2019 alone is a crucial first step in getting PNG out of its economic hole.
But he has signalled that further painful steps would be required, including further cuts in the 2020 budget.
