PNG Government Delivers Record K30.9 Billion National Budget for 2026
Treasurer - Ian-Ling Stucky (left), and Prime Minister James Marape at the Budget Lockup: (pic credit- The PNG Bulletin)
The Government has delivered a record K30.9 billion National Budget for 2026 to Parliament, outlining what officials describe as one of the most disciplined and growth-focused fiscal plans brought forward in recent years.
Treasurer Ian Ling-Stuckey presented the Budget before the House, with Prime Minister James Marape acknowledging the Treasurer for maintaining a steady fiscal path despite ongoing global uncertainties. The Government projects K29.3 billion in revenues next year, driven by stronger tax administration and improved sectoral performance. This narrowing gap between revenue and expenditure marks one of the country’s most stable fiscal positions of the past decade.
Treasury’s outlook highlights that Papua New Guinea is now experiencing its longest sustained period of non-resource sector growth in national history, with real non-resource GDP expanding above 4% every year from 2021 through 2026. Growth remains consistent across the six-year period: 4.2% in 2021, 5.9% in 2022, 4.7% in 2023, 4.5% in 2024, 4.6% in 2025, and 4.5% projected for 2026. Officials say this demonstrates that economic activity is broadening beyond the traditional mining and LNG cycles that have historically shaped PNG’s growth patterns.
The Budget also reports that living standards, measured through GDP per capita, are now rising again after years of decline between 2014 and 2019. Treasury projects incomes to reach K8,949 per person in 2025 and K9,137 in 2026, signalling that households are beginning to recover from the pressures of the past decade. Government sources say stable prices, employment improvements and renewed momentum in agriculture and domestic industries are contributing to this turnaround.
Fiscal consolidation continues, with the national deficit projected to fall to 1.1% of GDP in 2026—down from 8.9% in 2020—keeping the country on track for a Budget surplus by 2027. Debt levels are also expected to ease, with the debt-to-GDP ratio forecast to drop from 48.4% in 2025 to 45.5% in 2026, easing medium-term fiscal pressure.
PNG’s total economy is forecast to rise from K133 billion in 2025 to K145 billion in 2026, continuing a growth trajectory that has seen the national economy expand by more than 80% since 2018. Longer-term Government projections remain ambitious, maintaining targets of a K200 billion economy by 2030, K300 billion by 2035, and K1 trillion by 2048.
Inflation remains comparatively low, recording 0.6% in 2024, –2.2% in the June quarter of 2025, and projected to settle at 4.2% in 2026. Formal employment increased 2.6% to mid-2025, with rural job opportunities also improving due to stronger agricultural commodity prices. Treasury states that controlled inflation and steady employment are helping to stabilise household budgets.
The 2026 National Budget will now undergo full parliamentary debate as lawmakers consider the Government’s spending priorities and economic direction for the coming year. Officials say the Budget reflects a continued focus on stability, revenue strength and broad-based growth across the economy.
About the Author:
Publisher- Christina Kewa-Swarbrick has over 20 years experience in the Media Industry and over 10 Years in Prophetic Engineering. She's a Holistic Life Solutions Coach, who combines her lived knowledge and experiences and her professional industry knowldege to help others. She's the founder of VISION4040 (PNG) and DBUM Bible Technology, a spiritual mapping system unlocking destiny blueprints . To engage her professional services go to this link: cks.vision4040.com
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