Fiscal decentralisation in Papua New Guinea (PNG) has been a contentious topic for much of the country’s history. PNG has had several attempts at decentralising fiscal responsibilities, without much success in improving governance or service delivery. This is concerning, given sub-national funding has increased in the past decade. Governance has deteriorated over time as more responsibilities and funds are channelled to lower levels of government, including through unaccountable transfers to members of parliament (MPs) to use at their discretion. Government effectiveness and service delivery have suffered as a result, leading to poor development outcomes. This paper examines the weaknesses in the decentralisation process and how these mechanisms can be strengthened. Data collected from PNG government budget reports is analysed both for insights into the decentralisation of finances to provinces since 2007 and implications for service delivery and accountable governance. Where data are publicly available, the paper compares sub-national revenues and operational and capital spending across provinces, provides contrasts to global experiences, and relates the insights gained from field interviews of province and district administration staff in two provinces: East New Britain and New Ireland. The paper concludes with reflections on policy implications.
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- Australia
