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FINANCE and Treasury Minister Patrick
Pruaitch has handed down the Government’s record fourth Supplementary
Budget totalling K1.367 billion that Parliament overwhelmingly passed
84-0 yesterday.
The supplementary budget has been described as “impact budget” targeting
the 87% of the rural majority living in 89 districts of PNG.
Each district would receive K4 million each towards the District Service
Improvement Programmes (DSIP) from windfall revenue made possible by
high commodity prices, political stability and tight fiscal controls, Mr
Pruaitch said.
The mini budget is in four parts with K197 million for various recurrent
expenditure; K893 million for public infrastructure including K240
million for maintenance; K356 million allocated by district under DSIP
including K297 million for major improvements in infrastructure; K297
million for repaying Government debt and K250 million to reduce the
Governments superannuation liabilities.
Under the recurrent expenditure of K197 million, National Agriculture
Development Plan receives K40 million, Civil Aviation Authority
restructuring K21 million, provincial and local level disaster K7
million, maritime boundary project K5 million, technical rapid response
group K3 million, greenhouse office K1 million, community development
(K610,000), Office of Rural Development (K750,000), cocoa pod and coffee
borer counter measures K12 million, replenishing the secretary’s advance
for contingencies in the remaining part of the year K20 million, cost
over-runs for the national election K15 million, increases in SSG
associated with increases in expected mineral and petroleum revenue
since budget time K15 million, back payment of doctors’ salaries and
wages K10 million, PNG Defence Force uniforms K8 million, outstanding
legal fees K8 million, court orders K8.54 million, NAQIA’s measures
against avian flu K3 million, Marienberg Community College K3 million,
Murik Lakes resettlement K2.1 million, Carteret Islands resettlement K3
million, Mirigini and Morauta House refurbishment K4 million, Financial
Management Improvement Plan K2 million, Land Development Committee K3
million, and National Forest Authority impact project fast-tracking K3
million.
Minister Pruaitch said the K893 million in public infrastructure
spending would be allocated to trust funds because spending on the
projects involved would take some time.
From this money, K240 million will be for public infrastructure
maintenance for education (K80 million), health (K80 million) and law
and justice sector (K80 million).
A total of K356 million has been allocated to support DSIP with K89
million each for each programmes in health, water supply, law and
justice and education improvement programmes. Each district will receive
K4 million for these DSIP programmes.
The mini budget also contained a total of K297 million to fund major
improvements to infrastructure including Lae roads (K25 million), Wewak
roads (K10 million), Lae port (K145 million), Wewak wharf (K37 million),
Central city (K30 million), Port Moresby wharf redevelopment (K10
million), institutional housing (K10 million), housing development (K15
million) and urbanisation programme (K15 million).
A total of K297 million had been allocated to retire public debts and
another K250 million to reduce the Government’s liability for
superannuation, as the employer of public servants with Nambawan Super
Limited (formerly POSF).
Minister Pruaitch said the 2007 Supplementary Budget set the foundations
for national prosperity using prudent fiscal management.
“We have shielded the recurrent budget from the effects of any possible
downturn in the international commodity prices.
He said the Government would live within its budget; retire debt and
other liabilities in order to improve the Government’s financial
position.
Mr Pruaitch said the Government would continue to strengthen the private
sector, improve the maintenance of public infrastructure and would
gradually improve service delivery to the people.
“This is aimed at enhancing confidence and capacity in the economy to
promote long term economic growth,” Mr Pruaitch said.
 
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