National Economic and Fiscal Commission

Minister Lelang emphasized the critical importance of adapting to the evolving political landscape, marked by decentralization and devolution of powers.

With a keen eye on the future, Minister Lelang highlighted the need for a comprehensive assessment of current financing mechanisms for provincial governments.

He stressed the necessity of ensuring provinces' self-sufficiency while maintaining the integrity of the decentralization structure established in 1997.

NEFC through its 2024 Budget Fiscal Report determined the Function Grants for the Provincial and Local Level Governments is at K771.3 million. An increase of K129.3 million from K642.1 million in 2023.

According to the report, Provincial Government Function Grants for 2024 stands at K655.6million, an increase of K84.2million kina from K571.4million in 2023, while Local Level Government Function Grants at K115.7million an increase of K45.1million from K70.6million in 2023.

This was made known at the opening of the final leg of the Regional Consultation Workshop in Port Moresby, on Tuesday.

The National Economic and Fiscal Commission, chief executive officer, Patrick Painap said that the disbursement of the K7.8b grants was from years 2009 to 2023, to the provincial and local level governments to support the education, health, and transport sectors, to name a few. 

“When we give the function grant we tell the province and LLGs you must make sure you fund those sectors sufficiently before you look at other aspects,” he said.

Morobe Provincial Health Authority CEO, Dr Kipas Binga, said the national procurement system hinders the timely delivery of medical drugs and consumables.

Ordinary Papua New Guineans are forced to buy their own medicine when seeking treatment at the ANGAU Memorial Provincial Hospital.

Those suffering from intense pain get a prescription from ANGAU to buy their morphine from pharmacies or other private hospitals; a costly and burdensome exercise for ordinary citizens.