Funding cut explained

THE Government is providing only K2 million to each district and province since its only two months before the year ends, Prime Minister Peter O’Neill says.
He said this yesterday when expressing his confidence in the 2017 supplementary budget to be tabled by Treasurer Charles Abel in the next session of Parliament starting next Tuesday.
“In the supplementary budget, the Government is not cutting DSIP and PSIP,” O’Neill said.
“Because we have only two months left in the 2017 fiscal year, the Government is providing K2 million for each district and province.
“The balance will be paid to the districts and provinces over the term of this Parliament.
“These two programmes are integral part of our development agenda and we have seen these programmes deliver real changes.”
O’Neill said the new financial plan was necessary to balance the 2017 national budget due to the adjustments in revenue collection, and more importantly, to reprioritise expenditure to focus on the Government’s key development agenda.
“The 2017 budget plan was based on commodity prices for our exports together with revenue generation,” O’Neill said.
“We are still in a challenging global economic environment with a slow rebound in commodity prices. And this places pressure on expenditure.
“We will continue to adjust and reprioritise expenditure to ensure that we protect and build on the gains we have achieved in the past five years in healthcare, education, infrastructure, law and order, and empowerment of our people.
“The continued investments in these areas are vital to our long-term development and in improving the lives of our people.”
O’Neill said the devolution of authority to provinces and districts continued to be a core priority of the Government.
“Our DSIPs and PSIPs are vital to achieving our development objective right around the country,” he said.