Bank of Papua New Guinea warns on spending

The Bank of Papua New Guinea issued a warning to the government against increased spending during the general elections, in the face of unfavourable external developments.

The country goes to the polls on 30 June and PNG's Somare government, which has a huge budget surplus from favourable mineral and commodity prices, has in recent months promised large sums for projects valued at over K100m (US$32m) during political campaigns throughout the country.

Projects include education subsidies for s