Budget lacks transparency, funds kept in Waigani: Shadow treasurer

The National National

SHADOW Treasurer Joseph Lelang says the 2022 Budget lacks transparency because a lot of the funds are centralised and kept in Waigani.
He told Parliament yesterday that very little was going out to the provinces and to support other important functions of the Government.
“A total allocation of K13,423 million (K13.4 billion) is classified as operational funds in the 2022 Budget expenditure. Of this amount, a total of K2,605.5mil is kept in miscellaneous with the Department of Treasury and Finance.
“It is kept here in Waigani.
“When we look at the capital budget of K8,751.8mil, again a total of K3,077.7mil is kept in the administration sector; where Department of National Planning takes a share of K2,090.2mil; Treasury Department K240.3mil and Department of Prime Minister and NEC (National Executive Council) K394.5mil.
“Again, it is kept here in Waigani.
“We need to allocate more funding to the provinces because that is where our people are. Only four provinces aside from the Autonomous Region of Bougainville got increased funding – Gulf, Northern, National Capital District and Hela.
“Aside from the five mentioned, total budget allocations to provinces (recurrent and conditional grants to provinces and LLGs, public investment programme and grants to LLGs) to all the provinces were reduced overall by a net of K264.3mil in the 2022 Budget compared to the 2021 Budget allocations.”
Lelang said provinces that received cuts in the 2022 Budget included:

  • MOROBE (a cut of K113mil);
  • EASTERN Highlands (K38.9mil);
  • WEST Sepik (K36.5mil);
  • MADANG (K35.9mil);
  • WESTERN Highlands (K33.5mil);
  • MILNE Bay (K25.5mil);
  • SOUTHERN Highlands (K26.6 mil);
  • EAST Sepik (K23.1mil);
  • CHIMBU (K22.1mil);
  • EAST New Britain (K22.1mil);
  • CENTRAL (K21.2mil);
  • ENGA (K17.1mil);
  • NEW Ireland (K14.7mil);
  • JIWAKA (K13.9mil);
  • FLY River (K11.2mil);
  • MANUS (K4 mil); and
  • WEST New Britain (K510,000).

“The majority of people are in rural areas and they receive services from their provincial governments and districts.
“Provincial governments should not be getting cuts in their 2022 Budget allocations.
“They need funding for provincial infrastructures, roads, bridges, education and health services, not here in Waigani.
“Provincial governments need funds to confront Covid-19 with the new variant.”