Pacific / Papua New Guinea

PNG Government insolvent - Opposition Leader

18:30 pm on 11 August 2015

The leader of the Papua New Guinea Opposition, Don Polye, says the government is insolvent and is already cutting funding to key sectors.

PNG Opposition leader Don Polye Photo: RNZI / Johnny Blades

This comes amid wide criticism of the Peter O'Neill Government's handling of the economy and predictions of a 20 fall in revenue and a widening deficit.

Mr O'Neill says they can counter this and critics of the state of the economy are just those with vested interests.

But Mr Polye says the government has already cut funding to public works, education, health and other sectors.

He says drastic action is needed and he would immediately stop major infrastructure spending in Port Moresby.

"[They are] spending up to 300 - 400 million kina in one piece of infrastructure. Roads that are being built, getting all monies that would have gone to the Highlands Highway road maintenance or to other roads throughout Papua New Guinea, into just doing new roads and other roads in Port Moresby that have no economic value."