The Autonomous Bougainville Government has passed a total budget of over K390million for the 2021 financial year.

ABG Finance Minister Hon. Mathias Salas, presented the budget to parliament yesterday during the final sitting of the House for this year.

“This Budget comprises a comprehensive range of program objectives specifically aimed at improved service delivery, preparing for consultations and negotiations for Independence, economic and infrastructure development, increasing accountability and governance, improving law and order, consolidating relations with the National Government and key development partners, capacity building and lifting the general living standards and conditions of the people of the Autonomous Region of Bougainville,” he said.

The bulk of the ABG 2021 Budget is sourced from the National Government Grants to Bougainville which totals up to K319, 998, 000.00, while the remaining amount of approximately K27million and K45million will be sourced through ABG internal revenue and re-appropriated funds respectively.

The National Government grants will cover the Development Budget and covers the following:

Restoration and Development Grant – K100million
District Services Improvement Program – K30million
Provincial Support Improvement Program – K10million
Bougainville Healthy Community Program – K3.5million
Public Investment Program (Rural roads) – K16million

Minister Salas reflected on the National Government’s 2021 budget which was passed last week, saying that the national budget has been framed against the influential effects of the global pandemic on the world economy.

“The 2021 [national] budget strikes a balance between the need to maintain broad-based economic growth through funding key priority expenditures, against a fairly week revenue profile. It is clear that the weak global economic and low commodity prices has taken a toll on government revenue,” he said.

“Because Bougainville is such a small player in the global economy, it would not be remiss of the ABG to appreciate the issues PNG is experiencing as those issues also affect us.”

The bulk of ABG’s funding source for 2021 will be from the National Government and therefore issues affecting the National Government revenue will therefore affect Bougainville.

In response to this, Minister Salas explained that the 2021 ABG Budget Policy Framework has been designed to mitigate these global effects on the people of Bougainville.

The 2021 ABG Budget is also focused on implementing the key priorities of the Toroama-Nisira government as outlined in the President’s Six-Point Strategy.

The ABG Executive Government has also proposed a number of key projects to be funded under the 2021 budget:

Strengthening of the Dialogue and Consultation Process
Finalization of Economic Development Plan
Manetai Limestone Project
Re-establishment of Kuveria Jail

Other key projects include the Buka Ring Road, Kieta to Toimanapu road and Toimanapu to Kangu road sealing. Funding allocation will also be made available to all major sectors including law and justice, governance and administration, social sector and infrastructure.

Funding support of K3million will also be provided for the recently passed motion on the Bougainville Independence Mission. This support is largely to focus on progressing ‘independence readiness’ at the local, national and international levels.

The Toroama-Nisira government will also be focusing on major policy initiatives that strengthen revenue raising measures for Bougainville by creating a broad-based tax regime.

The government also has plans to establish a Tuna Cannery and downstream processing plant for Bougainville cash crop commodities such as cocoa. Funding support will also be provided to the State Owned Enterprise Sector in Bougainville in 2021.

An approximate total of K5.6million will be allocated among ABG Constituency Members for development activities in their respective constituencies.

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