NIP’s K169.4m budget passed

NEW Ireland last Thursday passed its 2012 provincial budget of K169.4 million focusing on economic growth and development.
The budget embraces health, law enforcement, infrastructure, sports and youth.
Governor Sir Julius Chan said this was the second year he had achieved the new benchmark of cost allocation, reducing administration costs to less than 30% of the total budget, leaving 70% for development.
Of the K169.4 million, the provincial government is putting K119.7 million into development, leaving K49.7 million for costs.
Sir Julius clarified that an amount of K48.5 million of the total appropriation has been “ring-fenced” because it involved money owed to New Ireland by the national government as back payments under the Lihir mining memorandum of agreement.
It is budgeted given the assurances from the attorney-general and prime minister that these arrears would be paid.
These funds were allocated specifically to projects and activities including the establishment of the New Ireland Bank, Lihir ring road sealing, a stabilisation fund to invest in the future of the province, project support for implementation and monitoring and legal and consultancy fees.
The budget support all key sectors as follows:
l Economic sector K 22.4 million;
l Social sector K21.8 million;
l Law and order K3.4 million;
l Infrastructure K31.9 million;
l Administration sector  K5.5 million; and
l Planning and finance  K1.2 million.
Sir Julius said the development budget provided K8.5 million for bridging or project support across all sectors.