ABG Minister for Treasury and Finance Hon. Mathias Salas, yesterday tabled the ABG 2021 Supplementary Appropriation Bill in the August session of the House of Representatives.

The supplementary budget is the first under the Toroama-Nisira government, totaling to K421,883,916.00 and includes a new total internal revenue of more than K30million.

Minister Salas in his statement explained that the internal revenue was received from two sources which are the BSP Capital Shares Dividends (K543,000.00) and IRC Corporate Income Tax (K30million) which were received by the ABG in May and July 2021 respectively.

Under the 2021 Supplementary Budget, the Executive Government has approved a total of 16 program activities to be funded under the additional internal revenue component.

These programs fall under four major policy priorities being: 1. Improved service delivery through strong and deliberate realignment of focus at the district level

2. Significantly increase revenue volumes and the collection of revenue

3. Strengthening key interventions and functions of government

4. Building and strengthening capacities in preparation and participation in the Post-Referendum Consultations for Independence

“It is important to note that these policy areas which will guide the priorities of the 2021 Supplementary Budget fall under the radar of the President’s Six Point Strategy with a very strong focus on economic development and governance,” Minister Salas stated.

Some of the key program activities that the Government will be undertaking through the Supplementary Budget include:

• Major investment portfolio in Treasury Bonds with the Central Bank of Papua New Guinea (K20million)

• 2021 Community Government Elections and ABG By-Election (K2.5million)

• 2021 Bougainville Economic and Investment Summit (K1million)

• Establishment of Bougainville Savings and Loans Society (K534,000)

• Bougainville Constitutional and Law Reform Commission (K400,000)

• ABG Tuition Fee Assistance (K1million)

• Bougainville Police Service Recruitment and Training (K1.5million)

• Community Government Grants (K860,000)

• Law and Justice Support -Bougainville Intelligence Unit (K500,000)

• Independence Mission Implementation Support (K1million)

Minister Salas said that the ABG has the power under its Bougainville Public Finances (Management and Administration) Act 2014 to invest in securities with the Central Bank of Papua New Guinea.

“The Law provides adequate legal cover for the ABG to invest with the BPNG now and in the future,” he said.

“The principle amount of K20million will remain untouched till the maturity period of 10 years expires. Based on the current rate of return of 9.4% through this investment portfolio, the ABG will be receiving interest on a bi-annual basis of a net of K799,000 after tax,” he explained.

Speaking on the support provided to for the establishment of the Bougainville Constitutional and Law Reform Commission, Minister Salas stated that this decision is in line with the resolutions reached in the last joint meeting in Wabag.

“The CPC is being tasked with the responsibility of conducting extensive consultations, within and outside of Bougainville, on the development and drafting of Bougainville’s Independence Constitution by 2025,” he said.

Minister Salas said that overall, the 2021 Supplementary Budget reflects the seriousness of the Toroama-Nisira government to realign its focus towards supporting impact programs in that will push Bougainville towards its political aspiration.

"With the internal and domestic prongs of the Trident Strategy gaining momentum, we will require all available resources to achieve the desired outcomes," he said.

He said though the internal revenue is limited compared to all government priorities combined, it also gives the government the prerogative to make wise decisions about its spending.

“The major expenditure items are targeted towards investment and the pursuit of our political aspirations by financing certain aspects of the agreed Roadmap and funding for social sector programs,” he said.

The Supplementary Apprpriation Bill (2021) passed through the third reading this afternoon and is now an Act of Parliament.

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