Papua New Guinea's central bank wants spending cut

PAPUA NEW GUINEA - The Bank of Papua New Guinea yesterday warned that the incoming government could face a financial crisis similar to those in 1994 and 1999 following a 210.5m kina hole in the budget deficit in the first half of this year.

The bank had warned the Morauta government on 6 May and on 11 July "that it had to adjust and constrain expenditure to the level of revenue collections, and not to resort to further excessive domestic financing of the budget".

The deficit, which contrasted w