PNG government cuts spending raises taxes in new budget

The Papua New Guinea Government's 2017 Budget will bring in new taxes and make major cuts in spending.

The 6.6 billion US dollar budget will chop back on capital investment but will continue some O'Neill government's flagship policies.

But Economist Paul Flanagan, who has worked with the PNG Treasury Department, and is now with the Australian National University, calls the Budget fiscally fraudulent - a term he told Don Wiseman that he arrived at after careful consideraton.