The National Economic and Fiscal Policy Commission ( NEFC) acts as an advisory agent to the National Government.
Their role is to collect all the Provincial expenditures and review and analyse them before presenting data on how Government funding is spent.
It is a bottom-up-approach, which started in 2008, after the Organic law was amended.
Chief Executive Officer of NEFC, Hohore Suve, says the old organic law in funding the Provincial Supplementary Improvement Program Funds was through Kina per head and landmass.
“The bigger population and landmass the more money being funded,” Suve said.
After the amendment, it was funded through ‘needs-based’.
“The more the need, the more funding given,” Suve said.
NEFC’s role is to identify the needs in each Provinces and advice the National Government on how much money each Province should receive.
Through such gatherings, the Provinces will present its expenditures to NEFC.
NEFC then collects tangible evidence on how the money was budgeted and spent on five priority sectors.
They are Health, Education, Transport and Infrastructure, Law and Justice and Governance for Service Delivery.
Under these five priority sectors are eleven Minimum Priority Activities or MPA’s the Provinces need to achieve.
Simbu Province is leading in PNG for allocating adequate funding to these eleven Minimum Priority Activites.
