PNG Provinces Strangled by Delayed Grants, Committee Warns

Failure to release PNG Provincial Functional Grants on time is turning rural funding problems into a nationwide crisis, according to Parliamentary Plans and Estimates Committee chairman Joseph Yopyyopy.

The Wosera-Gawi MP told Parliament last November that delayed and reduced funding has weakened service delivery in provinces, forcing thousands of people to relocate to towns and cities in search of basic necessities.

He said health centres, schools and law-and-order services in rural areas are the first to suffer when funds do not arrive, leaving communities with little choice but to move.

Mr Yopyyopy said this steady migration is now overwhelming urban areas, with settlements expanding rapidly, classrooms overcrowded and hospitals struggling to cope with demand.

He said the committee observed that provincial governments have faced declining allocations over the past three years, with many funds approved on paper failing to reach provincial accounts on time.

According to Mr Yopyyopy, the lack of predictability in funding makes it impossible for provinces and districts to plan and improve services for their people.

He warned that the social consequences are worsening, with unemployment and crime rising as cities absorb more people than they can support.

The committee has recommended timely cash releases in 2026, improved transparency so provinces know when funding will arrive, and a review of the fiscal framework to ensure provincial funding is protected.

“These grants are the foundation of health, education, law and order and infrastructure. When they fall short, the well-being of our people is directly affected,” Mr Yopyyopy said.