MPGIS budget shortfall continues to strain provincial operations: PS Dr Futaiasia
BY NED GAGAHE
The Ministry of Provincial Government and Institutional Strengthening (MPGIS) has been operating with a $6 million budget shortfall since 2020, a situation that has had serious implications for its programs, the Public Accounts Committee (PAC) was informed.
The budget cut, made during the COVID-19 pandemic, has not been restored despite the passage of time since the Pandemic.
Dr Derek Futaiasia, the Permanent Secretary (PS) of the MPGIS, expressed concerns over the continuing impact this budget reduction is having on the ministry’s ability to effectively support provincial governments across the country.
“Since 2020, the Ministry has faced a budget cut of $6 million. Unfortunately, this reduction has not been reinstated, and it has affected our operational capabilities, particularly at the provincial level,”
“We have received complaints from all provinces due to the limited funds they are receiving.” PS Futaiasia said.
For the upcoming 2025 budget, the PS revealed that the ministry’s recurrent budget is set at $148 million, with an additional $35 million allocated for development.
This brings the total budget, including non-appropriated funds, to around $200 million.
However, PS Futaiasia stated that a significant portion of this budget, approximately $18.7 million, comes from the Integrated Economic Development and Community Resilience Project, while around $14.5 million is sourced from the United Nations Capital Development Fund.
“This amount is too small and insufficient,” PS Futaiasia emphasized.
“As far as the operational capabilities of the provinces are concerned, this budget is a major challenge.”
Dr Futaiasia also revealed this challenge has been compounded by the rejection of a bid submitted by the Ministry to increase the budget by $2.2 million.
He revealed that the Ministry of Finance advised against the bid submission, leaving the MPGIS with limited resources to address provincial needs.
MPGIS Financial Controller further revealed that the total allocation for grants to all provinces stands at just $56.4 million.
This amount, the Controller stressed, is insufficient to meet the needs of the provinces and is significantly hindering the ministry’s ability to provide the necessary support for provincial development and governance.
The ongoing budget shortfall remains a critical issue, and PS Futaiasia called for urgent attention from the government to restore the funding needed to empower the provinces and strengthen local governance.
