Rural and Economic Department to undertake nationwide study on cost of services

Friday, 28 March 2025, 3:08 pm

Rural and Economic Development Minister Joseph Lelang (middle) was flanked by his staff and research partners (NBC News: Bathsheba Sanau)

The National Government will soon know the cost of providing basic services in the 22 provinces of Papua New Guinea.

This will be through a cost-of-service study that will be carried by the National Economic and Fiscal Commission throughout the country this year.

Minister for Rural and Economic Development, Joseph Lelang launched the 2025 Cost of Services study, emphasizing its importance to provide the foundation for reviewing how funds are allocated, leaving behind no province, district, and LLG.

"Over 80 per cent of our people live in our rural areas of this country, and these communities should not only see the presence of government, but they must also feel it in their everyday lives," Lelang said.

"The National Economic Commission, Fiscal Commission, together with all of you, all the other agencies, you're all working hard to bridge that gap and strengthen the bond between government services and our people"

This is the fifth study since 2005 and is crucial in enabling NEFC to fulfill its mandate.

NEFC Chief Executive Patrick Painap said the study will be a key tool to ensure provinces get funding they need to meet national priorities.

Painap said the survey will give a clear indication of both operating and capital costs to better assist the government in delivering essential services of nation-building.

Meantime, he is calling on all respective provincial, district, and LLG administrations to work closely with NEFC in the coming weeks during the study.