Papua New Guinea Development Policy Operation

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The development objective of First Economic and Fiscal Resilience Development Policy Operation Project for Papua New Guinea is to: (i) strengthen fiscal management and revenue performance; and (ii) strengthen key building blocks for public financial management and financial inclusion. The operation supports four key components of the government’s development program, as articulated in the Alotau Accord II, Medium-Term Fiscal Strategy (MTFS), Medium-Term Revenue Strategy (MTRS) and the existing Medium-Term Development Plan II 2016-2017. The first component is fiscal management, where the government aims to improve fiscal resilience to resource-based volatility by establishing the non-resource primary balance as a medium-term fiscal anchor. The second is revenue mobilization, where the government aims to reverse the recent declining trend in tax revenue to Gross Domestic Product (GDP) by broadening the tax base, providing clear revenue administration legislation, and operating a fair and efficient revenue administration. The third is public financial management (PFM) reform, where the government aims to continue the implementation of the PEFA Road Map 2015-2018, within which the rollout of the IFMS is among the highest priorities. The fourth is gender equality, where the government aims to support the economic empowerment of women.