BY SAMIE WAIKORI
The Temotu Provincial Government (TPG) will continue to allocate 15 percent of its internal revenue to the Fixed Service Grant to support the Ward Development Fund (WDF).
Speaking at a recent full assembly meeting in Lata, Minister for Finance and Treasury, Michael Mapolu, said the province’s current economic base remains a key factor influencing this decision.
He emphasised that the provision of ward grants is mandatory, and their administration will follow the Ward Grants Policy issued by the Ministry of Provincial Government and Institutional Strengthening (MPGIS).
In terms of financing, Mapolu explained that the government allocates 15 percent of its internal revenue to the Fixed Service Grant.
These funds are distributed equally across all 18 wards, with each ward receiving $85,749.31. In total, the Temotu provincial government will disburse $1,543,487.58 in ward grants.
“For Temotu, we all know that our economic base is currently narrow and fragile. We cannot expect any significant increase in economic growth under these conditions.
“Economic growth and development in Temotu Province will only be realised when the provincial economic base is broadened,” he said.
Premier Stanley Tehiahua also highlighted the province’s revenue challenges, noting that they reflect a broader national trend.
He said the province continues to face significant difficulties in generating revenue, with local revenue receipts standing at approximately $2,130,000, relatively low compared to operational needs.
Furthermore, the premier said about 85 percent of the province’s total recurrent revenue of $8,412,191.60 is sourced externally, while only 14 percent is generated locally.
“This clearly indicates a heavy dependence on external funding, which is not sustainable in the long term.
“It also underscores the urgent need to strengthen local revenue collection mechanisms and maximise returns from our natural resources,” he said.
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