Reports on Observance of Standards and Codes

Papua New Guinea and the IMF

What do you think of Reports on the Observance of Standards and Codes?

Papua New Guinea

October 2000

Prepared by staff from the International Monetary Fund on the basis of information provided by the Papua New Guinea authorities
The International Monetary Fund


     Executive Summary

  1. Introduction

  2. Description of Practice
    1. Clarity of Roles and Responsibilities
    2. Public Availability of Information
    3. Open Budget Preparation, Execution, and Reporting
    4. Independent Assurances of Integrity

  3. IMF Staff Commentary


Executive Summary

Papua New Guinea has a generally transparent framework for the conduct of fiscal policy. However, a lack of information on general government operations and noncompliance with legal reporting and fiscal management requirements have become major problems in recent years.

There is a generally sound legal framework for budget preparation, taxation, expenditure control, reporting and auditing. The central government budget is comprehensive and is formulated within a medium term macroeconomic framework. Fiscal accounts are audited by the auditor-general and the judiciary provides an effective check on some of the fiscal actions by government and parliament. However, administrative and parliamentary responses to fiscal noncompliance and audit reports have become ineffective and action is required to revitalize basic fiscal reporting and expenditure control mechanisms.

The government is aware of these weaknesses and is preparing to address them. The staff has given particular emphasis to strengthening watchdog agencies (parliamentary accounts committee, auditor-general, ombudsman), expanding information in the annual budget and improving the timeliness and comprehensiveness of periodic budgetary information provided to the public, strengthening budget execution by improving the internal control environment, enhancing monitoring of general government especially of the provinces, and identifying and reporting quasi-fiscal activities of public sector entities.