OXFORD BUSINESS GROUP
In the line with an electoral platform that pledged to deliver more local level services and control over spending, the national government of Papua New Guinea has introduced a budget for 2013 that transfers nearly K1.5bn to provincial, district and local authorities.
Each province is expected to receive K5m per district, while districts will be directly allocated K10m and local governments K500,000.
The government has set up guidelines for spending, with 30% of funding committed to infrastructure, 20% each to education and health care, and 10% each to law and order, support for economic activities, and administrative issues such as tendering.
In total, the amount of funds transferred represents an 87% year-on-year increase in support for sub-national programs.
Prime Minister Peter O’Neill told Oxford Business Group, “Local communities will now have more control over decision making and the implementation of development projects. These efforts combined will help to ensure the country’s continued economic and social health.”
The central government will retain final approval for larger projects, but funding will now be in the hands of sub-national authorities. This has raised some concerns, as Treasury Minister Don Polye conceded in a speech in late 2012, but he noted that the government had carefully considered the risks, as well as strengthened accountability and auditing systems.
The government has set up guidelines for spending, with 30% of funding committed to infrastructure, 20% each to education and health care, and 10% each to law and order, support for economic activities, and administrative issues such as tendering.
In total, the amount of funds transferred represents an 87% year-on-year increase in support for sub-national programs.
Prime Minister Peter O’Neill told Oxford Business Group, “Local communities will now have more control over decision making and the implementation of development projects. These efforts combined will help to ensure the country’s continued economic and social health.”
The central government will retain final approval for larger projects, but funding will now be in the hands of sub-national authorities. This has raised some concerns, as Treasury Minister Don Polye conceded in a speech in late 2012, but he noted that the government had carefully considered the risks, as well as strengthened accountability and auditing systems.