NEFC completes cost of service study in Jiwaka

Wednesday, 23 April 2025, 8:46 am

NEFC team and Jiwaka provincial government after the COS study. (Image: NBC News)

Government institutions in Jiwaka Province that missed out on operational grants over the past four years will now receive funding from the national budget.

The National Economic and Fiscal Commission [NEFC] has completed the 2025 Cost-of-Service Study [CoSS] on key national programs in the province.

NEFC Director Erick Kumasan said the CoSS, conducted every five years, helps the Commission fulfill its mandate. He explained that the five-year gap between studies allows new programs and institutions to emerge across provinces like Jiwaka.

“This nationwide exercise enables us to calculate the estimated cost of service delivery and guide the Treasury in allocating accurate funding,” Kumasan said.

He added that provinces have established many new institutions in the last five years, and this study will help secure functional grants for those that missed out previously.

Kumasan emphasized that the 2025 CoSS will support evidence-based budgeting, enabling smoother operations at the provincial and district levels.

He noted that this is NEFC’s fifth nationwide CoSS and it aims to update the national government on the actual cost of delivering basic services across provinces and key sectors.

“The data from this survey will directly inform the allocation of functional grants to provincial and local-level governments,” Kumasan said.

Team leader Valentine Sime said the main goal is to determine the true cost of delivering essential goods and services through functional grants.

The Highlands team split into two groups. One covered Eastern Highlands and Simbu, while Kumasan’s team completed surveys in Western Highlands and Jiwaka, and is now working in Southern Highlands.

Meanwhile, Jiwaka Provincial Administrator Rick Kogen thanked the NEFC team for completing the week-long survey in the province.

He acknowledged that some remote institutions, like schools in Kambia and Jimi, were missed, but said the provincial team will work with survey coordinators to include them in the next budget review.

Kogen, a former Department of Personnel Management officer with extensive experience, stressed that effective governance requires proper planning, budgeting, execution, and monitoring.

He also pointed out a lack of coordination among national, provincial, and district-level public servants.

“We are one public service, operating in different locations, but serving the same government and people,” Kogen said.