PORT MORESBY — Papua New Guinea has approved a K1.33 billion supplementary budget aimed at protecting households from rising fuel costs, responding to emerging El Niño conditions and preparing for the country’s 2027 national election.

Prime Minister James Marape welcomed Parliament’s approval of the additional spending, saying the package was designed to respond to immediate economic pressures while maintaining fiscal discipline.

The largest component is a K1.11 billion fuel-relief package, including more than K1 billion in direct subsidy support and around K110 million through reduced Goods and Services Tax revenue. The government expects fuel assistance to reach approximately K1.3 billion by the end of the year.

The measure is intended to shield families and businesses from international fuel-price increases. The government has highlighted the wider effect of fuel costs on public transport, farming, businesses and the prices of everyday goods.

Climate-related pressures are another major focus of the revised budget. The government has made K500 million in additional national funding available for the El Niño response, alongside an estimated K665 million from district and provincial allocations.

That could bring potential El Niño-related support to approximately K1.165 billion, with authorities preparing for drought, frost, food insecurity and water shortages affecting vulnerable communities.

The supplementary package also includes K150 million for preparations for the 2027 National General Election, together with more than K50 million for police and defence requirements.

At the same time, the government says it is attempting to control unnecessary expenditure by reducing non-essential travel and allowances and reviewing projects that can be postponed.

The revised budget increases projected government revenue and expenditure by about K1.33 billion, taking total government expenditure for 2026 to approximately K32.245 billion, while the projected deficit remains around K1.608 billion, equivalent to about 1% of GDP.

The government has presented the package as a balance between providing immediate assistance and maintaining longer-term financial discipline.

The measures come as Papua New Guinea faces the combined effects of international energy-price volatility and increasingly difficult weather conditions.

The supplementary budget therefore represents an effort to protect households while ensuring that the government has resources available for disaster response and essential national priorities.