2007 National Budget
"Investing in the future of our Nation"

Inflation has fallen from 11.8% in 2002 to a record low of 1.7% in 2005, with similar low outcomes expected in 2006 and 2007.

The Kina has recovered from being worth less than 20 US cents in 2002 to around 33 US cents now.

Interest rates are lower, with the Kina Facility Rate falling from 12% in 2002 to 6% now.

Govt debt has fallen from 71.8% of GDP at end of 2002 to an estimates 42.5% of GDP at end of 2006.

Foreign reserves are at record levels, currently standing around US$1.48b (equivalent of K4.5b).

well interesting bullet points about the status of out economy. With the elections coming up, there is an alarm sounded by financial institution of expense blow out leading to inflations and kina depreciation.

But we should give a balance view at that. If more money is spent on projects. Then that is benefitial as it stimulate the economy. If on elections, then the ombudsman comission has to be on its toes.

On that issue, seems like the NIO and the EC are having a war of words over who to blame on the predicted 2007 election failure.

Regards