In 2017, the Government of Papua New Guinea launched the Medium Term Fiscal Strategy (MTFS) 2018-2022 to ensure adequate and consistent funding for the country’s Medium Term Development Plan III and the SDGs. The MTFS provides an overview of the country’s fiscal performance and outlines opportunities for strengthening revenue mobilisation and reforming public financial management and debt management to achieve macroeconomic stability.
The MTFS consists of three major components: (i) a Medium Term Revenue Strategy (MTRS) aimed at building a revenue base to finance the government’s expenditure plans; (ii) an expenditure strategy to monitor revenue collection trends and promote greater efficiency in public spending; and (iii) a debt management strategy to ensure funding is available for fiscal needs of the budget at the lowest cost within a manageable the risk framework. The MTFS also outlines a framework for managing financial assets and public financial liabilities, developing of the domestic financial sector, and recognising the impacts of the kina exchange rate and market development for external debt.
In addition to the development of the MTFS, Papua New Guinea has completed a development finance assessment (DFA) and the government has developed an integrated national financing framework (INFF) that links to the MTFS and is consistent with the Fiscal Responsibility Act and Public Finance Management systems.