BRIEFING on how to improve Gross Domestic Product (GDP) in Papua New Guinea

Outline Introduction Importance of GDP Strengthening our legislation or Statistical Services Act 1980 Data sharing (macroeconomic statistics technical working Group) MSTWG between PNG NSO, BPNG, Treasury, Internal Revenue Commission (IRC) , and Investment Promotion Authority (IPA) Recruitment of additional Employees and training and up skilling of officers Resources (NSO) CLASSIFICATION ISSUES

Introduction The National Statistical Office presents a joint briefing with the Bank of PNG and the Internal Revenue Commission for the Minister and heads of Treasury, the Bank, Statistics and Revenue on how to improve Gross Domestic Product (GDP) in your country. GDP plays a key role in the formulation, implementation, monitoring and evaluation of national public policy frameworks and international agreed goals such as the Millennium Development Goals (MDGs) to enhance human development.

1: Importance of GDP GDP is a key macroeconomic statistic which measures the output produced in a country. The first thing analysts look at when assessing the performance of a country’s performance GDP which is used by lenders as an indicator of a country’s ability to repay its debt and it can determine how much and at what terms countries can borrow to finance essential infrastructure for economic development and improved living standards.

GDP estimates and forecasts are also important for sound macroeconomic management and monetary and fiscal policy because GDP underlies the forecasts of inflationary pressures, the balance of payments and tax revenue collections. It is of paramount importance that timely and relevant data is provided to ensure quick processing and release of GDP figures.

Useful for: Comparison over time Comparisons between countries Evaluating the success of Economic policy

2: Strengthening our legislation or Statistical Services Act 1980 NSO is the mandated agency in PNG that is tasked to collect data. NSO’s powers to prosecute unwilling parties has to be strengthen to make certain that this office fully meets its mandate. Tougher laws such as the proposed K10, 000 for non-compliance and imprisonment of up to 2 years should be implemented as soon as possible.

The Statistical Services Act 1980 also highlights the powers, roles and functions of the NSO and assures government departments that supply statistical data is treated with the highest degree of confidentiality. While each department or organization has its own secrecy provisions regarding the release of official data to external parties, the majority of government departments/agencies are reluctant to share data. However, the NSO has already demonstrate their ability to handle data with the recent release of the 2006-2013 GDP data using mostly Tax data from IRC. NSO would work closely with IRC and other key data providing agencies to make certain that the information provided is treated with the highest degree of confidentiality.

3: Data sharing (macroeconomic statistics technical working Group) MSTWG between PNG NSO, BPNG, Treasury, Internal Revenue Commission (IRC) , and Investment Promotion Authority (IPA) The macroeconomic statistics TWG was established in 2015 and was scheduled to meet on quarterly basis. It was guided by the terms of reference developed by the NSO. Apart from the NSO other members of the group are the Bank of PNG, PNG Internal Revenue Commission, Department of Treasury, Investment Promotions Authority, PNG Customs and the Department of National Planning & Monitoring.

NSO has only called one meeting since the establishment of the working group. NSO has to be more proactive in coordinating the collection of high quality and reliable data from Key agencies for GDP compilation A steering committee comprising the Heads of Organizations has to be functional to guide the MSTWG and make certain that the roles & objectives are fully implemented

4: Recruitment of additional Employees and training and up skilling of officers Pay grade and other benefits should also be upgraded to attract quality graduates and keep good officers. The NSO proposed structure to increase the staff ceiling would greatly assist the current officers to process raw data and help in the timely publication of reports. Training and mentoring of current officer by senior and experience staff should be highly encourage and supported by management.  

6: CLASSIFICATION ISSUES 5: Resources (NSO) The NSO needs to improve its communication links with other stakeholders, and provide internet and telephones to its staffs for doing follow ups. 6: CLASSIFICATION ISSUES NSO, IRC and Treasury must use the same version of classification.

End of Presentation Thank you