BY SAMIE WAIKORI
The Makira Ulawa provincial assembly passed a budget of $20,506,057.27 in its provincial revised budget meeting last week in Kirakira.
The budget, which is the 2024/2025 revised budget comprised of recurrent budget of $11,199,449.68 and capital budget of $9,306,607.59.
Introducing the budget, MUP Minister for Finance, Hon Silas Wagatora highlighted the importance of passing the budget for the smooth operation of the province.
Adding that the budget will sustain the operation of the province till the assembly passes the original budget for 2025/2026.
“I will begin by outlining the recurrent and capital revenues, follow by an overview of the recurrent and capital expenditure budgets” he said.
Wagatora also noted that there was a significant portion of additional revenue, which addressed manpower costs and overspent allocations of the province.
He furthered that the inclusion of the Provincial Capacity Development Fund (PCDF), LoCAL PCDF, and IEDCR PCDF funding have also reflected successful assessment results of MUP.
“Despite these increases, time constraints pose challenges for implementation before the end of the financial year.
“Efforts are underway to streamline budget execution processes to maximize resource utilization.
“Enhanced fiscal oversight will mitigate risks associated with overspending and ensure adherence to financial regulations,” Wagatora said.
He clarified the budget as follow;
Under revenue budget
The 2024/25 revised revenue budget totals $20,506,057.27, comprising recurrent revenues of $11,199,449.68 and capital revenues of $9,306,607.59.
Key contributors to the revenue increase include:
- Property rates arrears.
- Refunds from MPGIS for formation and PAMSAD costs.
- Rental income from provincial residences.
- SIG grants for PCDA salaries.
These sources highlight efforts to optimize revenue collection and manage arrears effectively. Enhanced transparency and improved systems are anticipated to sustain these gains in subsequent fiscal years.
Capital revenue
Capital revenue has increased significantly to $9,306,607.59, including $8,382,465.01 from external donors:
- SIG-PCDF: $3,978,955.25
- LoCAL PCDF: $1,923,161.70
- IEDCR PCDF: $2,480,348.07
The carry-forward amounts in the budget include:
- SIG capital for Huro Township Development: $129,610.33
- PCDF carry-forward: $194,532.24
- UNDP-EU (PGSD): $600,000.00
The capital revenue allocation underscores partnerships with development agencies and the importance of accountability in managing donor funds.
Strategic planning ensures long-term value creation for the province.
Expenditure Budget
Recurrent Expenditure
The revised recurrent expenditure is $9,179,541.38, an increase of $1,407,713.73 from the original budget. Allocations prioritize compliance with PACRA’s policies.
Capital Expenditure
Capital expenditure reflects participatory planning, emphasizing rural livelihoods through Ward Development Committees. Allocations include:
- 10% for general investment servicing.
- 20% for administration.
- 70% for infrastructure projects.
Under the revised PCDF manual, 60% of SIG-PCDF allocations focus on economic development and climate resilience. External funding agencies have defined specific investment areas:
- IEDCR: 70% for productive, climate-resilient community projects.
- LoCAL: development projects addressing climate change impacts.
He said this expenditure framework reinforces PACRA government’s commitment to equitable and sustainable development, ensuring that investments reach the communities that need them most.
For feedback, contact: [email protected]
