The Prime Minister James Marape has announced a balanced budget is on the horizon, stating good economic growth in the past few years since he took office, could possibly lead to one.

During last evening’s Prime Minister’s 51st Independence Anniversary Dinner on Independence Hill in Port Moresby city, Marape announced that next year (2027) the government anticipates to deliver a balanced budget for the first time since 2010.

A balanced budget is where total income, or revenue equals the total spending or expenditure over a certain period. This differs from a deficit budget where the expenditure is greater than the revenue.

Over the past years, the country has been passing annual budgets that are deficit budgets. But this is hoped to change.

“Our deficits have been reduced since COVID-19 induced a high deficit of 8.9% in 2020. We have steadily consolidated, right now tracking through the supplementary budget indications at 1% and by next year we intend to come back to a balanced budget,” said the prime minister.

“All indicating that we have steadied the ship, steadied the course, growing the economy at the same time and trying our very best to serve our country. And I want to say contribute where you can.”

Meanwhile, Marape said the country’s economy has grown significantly from K79billion in 2019 to a K116billion economy. This is a good indication giving him the confidence that the K200billion economy target, can be achieved by 2030 or at the earliest.