New calculations for recurrent grants

I would like to take this opportunity to clarify one of the issues raised in your editorial on May 6 titled “MPs acting on impulse, not judgment”.
The editorial highlighted one of the alleged 59 anomalies with the Organic Law on provincial governments and local level governments as the failure of the national government to pay a K12 per head grant to local level governments.
In 2008, Parliament passed extensive amendments to the Organic Law on provincial governments and local level governments that repealed the provisions relating to recurrent grants for provincial government and local level government.
From the 2009 budget, local level governments received a grant based on the cost of delivering services.
Recurrent grants are no longer based on kina per head. 
The provincial government appropriations in the most recent annual budgets (2009 and 2010) have been based on this new funding formula.
I have made numerous presentations and  done briefings on these changes to a variety of audiences across Papua New Guinea. 

Nao Badu
Chairman and CEO
National Economic and Fiscal Commission