K205m to service provinces

National, Normal

The National- Tuesday, January 25, 2011

 THE National Government has allocated a total of K205.7 million in function grants to provincial governments for the delivery of basic services in 2011.

Under the new intergovernmental funding arrangements, this funding includes transferred funding from GST distribution changes.  

Under the new system, an additional K13.6 million was for grants.  

An extra K50 million had been allocated for urban to rural LLGs under the new financing arrangements.

This funding is especially for delivery of basic services such as distribution of drugs to the rural health centres and aid posts, delivery of school materials to primary and elementary schools, health and clinic patrols, maintenance of jetties wharves and airstrips and village courts.

According to the National Economic and Fiscal Commission,  Northern has received a total of K8.397 million; K2.142 million  in the 2011 budget for health services, K1.795 million for education, K2.065 million for transport infrastructure maintenance, K927,800 for primary production,  K42,500 for village courts, K827,400 and K595,000.

Another province which had performed well in terms of spending on the basic service delivery areas was Central.

Central received a total of K11.18 million in a form of function grants for the delivery of basic services to the majority of its rural population. 

East Sepik received  K6.074 million for health, K4.072 million for education, K8.818 million, K1.354 million, K167,300 for village courts, K1.452 million and K645,000, which was a total of K22.584 million.

According to NEFC, provinces would be assessed at the end of the year on how well they spent.

This funding was a result of GST distribution arrangements under the new system of intergovernmental financing arrangements and therefore, it was a must that provinces prioritised their budgets and spent their function grants wisely in areas of need.

This meant that provinces were expected to improve their performance in 2011 from last year.