The National,Wednesday 07th December 2011
By JEFFREY ELAPA
NATIONAL Planning Minister Sam Basil said the government has surpassed the 2011 development budget of K4.04 billion with K4.42 billion next year.
He said it was a record and targets rural development consistent with the government’s policies, empowering rural PNG to effectively participate in economic development.
He said programmes in the 2012 development budget had been screened and vetted through the budget process and the department was in the process of re-establishing supporting processes to ensure they were delivered as intended.
He said the medium to long-term polices and plans provided direction in the development budget.
Basil said the MTDP key enablers were unlocking land for development, improving law, order and justice, establishing quality national transport corridors that connected rural population to market and services, higher, technical education and training, primary and secondary education, providing key public utilities and improving health outcomes.
He said to enable the MTDP drive development, a significant proportion of the budget had been allocated to its properties, and crucially to the key enablers’ policies.
He said 78% of government financing (direct financing, loans and infrastructure tax credits) under the budget would be expanded in implementing the second year of MTDP plans.
Of that 71% had been allocated to the seven key enablers of the first MTDP.
Basil said in the 2012 budget, the major programmes which had taken up the majority of the domestic funding were:
n 2015 South Pacific Games – K180 million (K20 million 2011);
n DSIP – rural and feeder roads – K178 million (K2 million to all 89 districts);
n Loan counterpart payment – K173.3 million;
n NDB – Agriculture, Tourism, Fisheries and SME Credit support-K130 million;
n Infrastructure Development Grant – K120 million;
n ABG Restoration and Development grant – K100 million;
n Special Support Grants – K88.1 million;
n Highlands Highway (additional K70 million from tax credit) – K80 million;
n NCD roads – K65 million;
n District Support Grants – K54.5 million;
n High impact projects (UBSA) – K50 million;
n UPNG infrastructure Development Programmes – K43 million;
n Rehabilitation of hospitals – K40.7 million;
n Education infrastructure development programmes – K40 million;
n Water and sanitation programmes – K39 million;
n National Parliament maintenance – K35 million;
n Lae city roads –K28.7 million;
n Other important components worth K10 million to K25 million – K391.8 million; and
n Others – K600.1 million; which is a total of K2,437.20 million.a