Effective Revenue Collection Management Significantly Impacts Papua New Guinea's National Budget

Abstract: The Government of Papua New Guinea (GoPNG) generates revenue through diverse sources, which play a critical role in funding national initiatives and services. These sources include non-tax revenue (NTR), various forms of taxation, export earnings, licensing fees, external grants, international aid, dividends from state-owned enterprises, and government-run businesses. This paper delves into the operational processes and systems that GoPNG utilizes to collect non-tax revenue, highlighting the essential inputs, methodologies, and procedures involved in national revenue generation. It showcases how these systems function in practice, their challenges, and the effectiveness of current strategies. Despite the influx of foreign loans, aid, and grants, the GoPNG continues to grapple with persistent budget deficits. These financial shortfalls underscore the need for a comprehensive review of revenue-generating mechanisms and broader economic practices. To address these challenges effectively, GoPNG should consider strategies to enhance public sector services, ensure a reliable and sustainable energy supply, and thoroughly assess its policy framework. Such actions could significantly boost non-tax revenue and improve the government's overall financial health. Keywords: GoPNG, NTR, PNG Power, Lae JEL Classification Number: F31, F41