The Department of Works will be impacted by the cut to its 2016 National Budget allocation, Secretary David Wereh says.
The National Government, in last month’s Parliament sitting, passed the 2016 Supplementary Budget to raise revenue from its national purse to meet the shortfalls in its 2016 national budget revenue projections.
Department of Works had cuts to its operational and capital expenditures, totalling over K200 million.
"Our accounts clerks are doing a full review of the supplementary budget and then we’ll see what the implications are," Secretary Wereh told Loop PNG.
"Some project funding will be reduced and definitely there will be some implications on the ongoing contracts where we have contractual commitments."
He told Loop PNG that it’s too early to make comments now on projects that will be affected.
"But a formal response will be given after the assessments of the funding cuts," the Works Secretary said.
Meanwhile, during the passage of the supplementary budget, Opposition Leader Don Polye pointed that major infrastructure and road projects will be affected because of these government cuts.
But Prime Minister Peter O’Neill said, cut to the works department budget is for projects that have been delayed or not yet off the ground.
The cost generation measure from all government departments and statutory organisations totalled K1.9 billion.