Economic growth statistics “magic tricks,” says Allan Bird

Before the passage of the 2025 National Budget in Parliament on Wednesday night, the Members of the Opposition budget reply was unlike past years.

East Sepik Governor Allan Bird was among the list from the alternative government who scrutinized the nation’s money plan for next year.

“Let me commend the Treasurer [Ian Ling-Stuckey] for another record-breaking budget of K28.357 billion. Six record budgets in a row. That must be a record too.

“Let me also acknowledge that he has the hardest job in PNG given that daily payment requests from Government MPs can’t be easy to deal with. This is also the first time; the Treasurer has not brought a Supplementary Budget to Parliament.

“Let me commend Treasurer and his team for raising more money than any other government in our history through taxes, loans, and quantitative easing. It’s an achievement that is going to be difficult to match in the future. K145 billion from 2020 to 2025. That’s more money than the last two Governments combined. This Government will spend more money in 6 years than the last 17 years combined.”

But the second term governor of East Sepik disagreed with the economic growth statistics presented by the Marape – Rosso Coalition Government for this year.

“Since debt is measured against Nominal GDP [Gross Domestic Product], the government has cunningly borrowed and printed money and rained that into our economy.

“This has had two main effects, firstly, it has grown Nominal GDP sky high. This high number then results in a lower Debt to GDP Ratio. That’s a brilliant trick. I thank the Hon [Richard] Masere and NSO [National Statistic Office] for releasing the real numbers,” Governor Bird responded to next year's budget in Parliament.  

He added, “This extra cash is fueling inflation, which our people are feeling right now. The truth of the matter is that in the same period where nominal GDP is going like a rocket at K137 billion, real GDP has only grown by around K10 billion to K79 billion, a gap of K58 billion or 42%. This correlates precisely with the cost-of-living crisis our people are feeling.

“Sneaky, Very Cunning magic tricks at work.”