The 2025 Papua New Guinea National Budget theme of “Securing Papua New Guinea in 2025 and beyond” continues the themes of recent years with a primary focus on budget repair and providing assistance to households.
PNG is expecting higher growth in 2025 at 4.7%, driven by the resumption of the Porgera mine, enhanced foreign exchange access, higher commodity prices, and increased government spending.
The K2.9bn projected deficit shows an improvement of K1bn from the 2024 Budget, the third consecutive year of deficit improvement, and is now at 2.2% of GDP, an improvement of 1.1% in one year.
GoPNG plans to finance the deficit by a combination of domestic and external borrowing. Net domestic borrowing through Treasury bills and bonds is expected to be K861m while net external borrowing from the ADB, World Bank and IMF is expected to be K2.1bn. This takes the debt level to K64.9bn or 47.4% of GDP. Debt peaks at K65bn during 2025 and then is forecast to steadily decline as a % of GDP through to 2029.
KPMG PNG Budget 2025
Learn about key regulatory and geopolitical issues affecting the business entities in the PNG region.
Previous KPMG PNG Budget editions
Contact us
KPMG provides a full range of audit, tax, and advisory services tailored to meet the unique needs of entities based in Papua New Guinea. Find out how we can help your business.
