Don’t depend on Government alone

SOME districts and provinces need to create their business arms or revive them to generate revenue.
The District Development Authority Act comes into play purposely to enable districts to venture into business.
While some provinces and districts have established their business arms, provinces such as Western Highlands, East New Britain and Eastern Highlands and districts such as Yangoru-Saussia have proven to be successful.
Provincial governments and district development authorities should understand that going into business:

• PROVIDES investment opportunities;
• CREATES employment opportunities;
• HELPS districts and provinces to be self-reliant without necessarily depending on the Government’s annual budget allocations;
• GENERATES extra stimulus packages for districts and provincial governments’ budget deficits ;
• ENCOURAGES more people to engage in the economy;
• SUPPORTS shortfalls in internal revenue to provide vital services in health and education;
• PROVIDES the economic environment by inviting investors;
• HELPS districts and provinces understand how to be prudent in management and opportunities in corporate management and investments; and,
• ENSURES there is diversity in economic activities such as agriculture, tourism and real estate.

While these are some of the opportunities that business activities could provide, districts and provinces are not serious enough to try it.
Some provinces and districts have the opportunity, but it comes back to the leadership and management.
Some have huge internal revenues from internal development grants, especially with provinces such as Gulf and Southern Highlands.
However, they are still behind in terms of translating these development funds into more revenue streams.
The country cannot keep on borrowing to fund its development budgets every year. We have the land mass, natural resources and some key infrastructure.
Sub-national governments cannot continue relying on the Government when they have the potential and the resources to engage in business activities.

Morris Samuga,
Waigani Swamp