The Papua New Guinea government has introduced the country's biggest ever budget, at $US6.1 billion.
Papua New Guinea 's national parliament in Waigani. Photo: RNZ / Johnny Blades
Revenue is estimated to climb to $US4.5 billion, leaving a deficit of $US1.6 billion, which the government says is 5.4 percent of GDP.
The economic growth is predicted by the Treasurer, Ian Ling-Stuckey to come from a resurgence in the resource sector, with the Porgera Mine recommencing and Ok Tedi improving effiencies.
Health and education were the big winners with a 46 percent increase in health spending and a 34 percent growth in education.
The health sector is to receive over $US700-million, or 11.2 percent of the total budget allocation.
Prime Minister, James Marape said was "possibly the first time in the last 46 years we've been a nation for Health Sector to receive the biggest allocation".
About 40 percent of the health dollars will go to capital spending, to help counter the problems revealed by the pandemic.
The government will also move to incorporate some of the church run medical services into the state system.
"Health comes first, we cannot compromise lives and livelihood of our people," Marape said.
PNG's health system has been struggling to cope with the third wave of the Covid-19 pandemic, with surges of hospitalisations and deaths due to the Delta variant.
Road construction on Papua New Guinea's Highlands Highway. Photo: RNZ / Johnny Blades
Road
Another substantial development will be roading infrastructure, with the government committing just over $US5.5 billion, over the next 20 years for a road running the length of the mainland on PNG's half of New Guinea.
The Connect PNG Bill allows for construction to be spread over 20 years.
Marape said the legislation ensured that 5.6 per cent of government revenue was made available each year to fund the Connect PNG Road Infrastructure Development Programme.
He said it would result in 16,200 kilometres of roads being constructed..
According to Marape, the capital works will be equally distributed through all regions.