Central budget passed

The National Main Stories

Reports by LUKE KAMA
THE Central assembly passed its 2017 budget of more than K165 million last Thursday.
Governor and chairman of the finance committee Kila Haoda, when handing down the budget at their assembly at Konedobu, Port Moresby, said the Central government had acted within the Government’s budget which had been framed against a weak global economic environment, reduced domestic economic activity and continued low commodity prices.
The total budget of K165,191,400 include recurrent function grants of K93,072,400, development grants of K52,390,000 and internal revenue of K19,729,000.
“The total budget for this government for the 2017 financial year stands at K165,191,400 compared to K166, 685,600 last year – a reduction in K1,494,200,” Haoda said.
“Thus, the continued reduction of functional grants appropriation is the after effect of the challenges the country has faced from 2014.”
He said the budget was an effect of framing the national budgets amidst a weak global economy and slower growth strained by the effects of El Nino and low commodity prices.
Grants from the Government were appropriated in the following budget framework:

  • Administration function grant was decreased to K1,914,200 from K1,917,200 in 2016;
  • other service delivery functions grant was decreased to K3,0398,300 from K3,137,700 in 2016;
  • health function grant was decreased to K5,882,800 from K6,073,200 in 2016;
  • education function grant was decreased to K6,098,500 from K6,289,000;
  • village court function grant was decreased to K3,43,800 from K404,000 in 2016;
  • transport Infrastructure function grant decrease to K10,175,100 from K10,695,500 in 2016;
  • primary production funds decreased to K2,032,400 from K2,063,700 in 2016; and,
  • Land mediators functional grants remain unchanged at K65,000.

Haoda said the provincial service improvement programme and the open MPs’ district service improvement programme funds would remain at K10 million as development funds for 2017.
He said a new inclusion in the development budget is a ward service improvement programme fund of K2,040,000 to be distributed equally to all council wards.
“The primary objective of the Ward SIP is to provide minimum service delivery standards at the ward level, particularly, the villages,” he said.
“The village councillors will receive around K10,000 to run social enhancement programmes addressing social disorder, reducing crime through such efforts as youth rehabilitation, awareness and educational programmes at the ward level.”