BY SAMIE WAIKORI
Premier of Makira Ulawa province, Stanley Siapu calls on the national government to reinstate the $6 million Fixed Service Grant (FSG) for provinces.
At the height of the covid pandemic in 2021 the Prime Minister’s Office (PMO) had instructed the Ministry of Provincial Government and Institution Strengthening (MPGIS) to remove the $6 million from its budget for the nine provinces.
Provincial governments have been calling on the national government through MPGIS demanding answers to this much-needed $6 million allocation.
Speaking during the recent Makira Ulawa province 42nd Second Appointed Day celebration held at Kirakira, Siapu emphasised the main source of funding for the provinces’ recurrent expenditure is the FSG provided by the Solomon Islands Governments.
However, he mentioned the trend analysis for the past 10 years shows that the funding has only increased by about $26.4m.
Siapu said this is because human capital and other services have to be paid for by respective provinces so as to facilitate delivery of infrastructures.
He said the funding that is allocated by the national government in its recurrent budget for provinces is indeed critical if provincial policy objectives are to be met in the area of infrastructures for economic development.
The premier recalled in 2018, when the minister for MPGIS tabled a cabinet paper requesting an increase of $6millions for the fixed service grant across all nine provinces.
“The extra costs had been to cater for deployment of 27 provincial specialists to nine provincial governments as requested by nine premiers at Auki Premiers Conference 2017 and improved service delivery.
“The cabinet’s approval of the proposal was welcomed by the nine provincial governments,” he said.
Siapu emphasised that being a fixed service grant, it was the only guaranteed source of funding for provincial governments because of its recurrent nature.
“It is therefore seen as a vital support to the nine provinces. Its adequacy to meet provincial expenditure needs is of great significance,” he said.
However, Siapu noted during the covid 19 pandemic in 2021, the PMO instructed all line ministries to retrieve funds allocated for non-essential services and return it to PMO.
He said the exercise resulted in the retrieval of the $6million from MPGIS budget allocation for the nine provincial governments’ FSG.
“The $6million reduction from Fixed Service Grant created a financial vacuum in our efforts to deliver services to the people in rural areas of Solomon Islands, where 85% of the people dwell.
“My humble call is to re-instate this much needed $6 million to the nine provincial governments through MPGIS, as approved by Cabinet 2018,” said Siapu.
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