11 June 2020

Minister for Treasury , Ian Ling-Stuckey outlined the K600 million support package in his recent update to Parliament  as part of COVID-19 economic stimulus package.

The K600  million direct support package has been split  into Health and Security sector , and the Economic Sector.

Break up of the K280 million for health and security are as follows:

• K60 million to limit the spread of the pandemic through preventative health actions by upgrading hygiene at markets, schools, universities and technical colleges, churches, district hospitals, aid posts and other potential hotspots. K0.5 million is being distributed to all provinces and districts. Full warrants have been released and funding set aside from the first and second C-19 bond raising;
• K37 million to be distributed directly to front-line Provincial Health Authorities, as a 22 percent increase in each of their 2020 Budget funding allocations. Full warrant has been released and the first K22 million has already been released to Health for paying to PHAs through the HSIP account;
• K30 million for the  Department of Health with the focus  on the provision of Personal Protective Equipment. Full warrants have been released and funding set aside from the first C-19 bond raising, on top of the K45 million already released;
• K60 million to the Royal Papua New Guinea Constabulary, the Defence Force and Correctional Services to strengthen law and order and to defend the borders. Full warrants have been released with the first K30 million paid to the Police;
• K73 million to the Defence Force to construct 10 border posts, including facilities for Immigration, NAQIA and Customs activities as appropriate, to future-proof the border. Full warrants have been released and the first K35 million has been paid to Defence.
• K15 million to the Department of Foreign Affairs and International Trade, with capacity building and strengthening of PNG’s foreign missions, to respond to the needs of PNG citizens living overseas, as well as the repatriation of  those who need to return home. Full warrants have been released and full payment has been made;
• K5 million to support the Marape Government commitment to help PNG churches and urban authorities , provide food for those most in need.

Details of the K320 million for the economic sector are as follows:

• K113 million for districts and provinces to promote agriculture development and food security through an outreach campaign and grants for improved crop production such as the purchase of seedlings and management of threats to plant and animal health. K1 million to every Province and District is being distributed. Full warrants have been released and funding set aside from the second COVID-19 Bond raising;
• K50 million as a price support program for agriculture export crop production directed at small cash crop producers, especially in the coffee, cocoa and copra industries initially – implementation details on this will be released shortly;
• 5 million to support rural MSMEs and households, enabling districts to undertake responsive MSME activities such as market improvements and small business training – K500,000 has been allocated to each district. Full warrants have been released and funding set aside from the first COVID-19 Bond raising with immediate disbursement taking place;
• 5 million as an additional Business Stimulus Package to protect jobs and make doing business easier which will be mainly directed to support Provinces to reduce existing charges on businesses. Full warrants have been released with the first K19.5 million from the first COVID-19 Bond and K22 million from the IMF RCF; and
• K70 million for additional economic-based activities to help stimulate the economy, with options being discussed further with the IRC and Customs, as well as other more direct stimulatory measures. Warrants are waiting final programme

Mr Ling -Stuckey urged provinces and districts to report on all spending, in accordance with  Finance Instruction 5-2020 on COVID 19 procurement and reporting requirements, which is available on the government’s procurement website: (http://www.procurement.gov.pg/wp.