The government’s allocation of K160 million under the key component of the Household Assistance Package in the 2022 Supplementary Budget for school fee assistance throughout PNG will be released to the Education Department.
Treasurer Ian Ling-Stuckey while handing down his supplementary money plan last Friday said this allocation was a practical measure to support schools to help families around the nation, deal with cost of living pressures.
He said PNG is experiencing its highest rate of growth, in the kina size of our economy, in its history despite inflationary pressures.
But he said the K611 million Household Assistance Package, among them the school fee package, is helping to keep those under control, with inflation rate, without the government’s actions and the 9.5 per cent average in other developing countries.
A second, key component of the Household Assistance Package, is an agreement, for the government to pay the 20 per cent school project fees, for all families around PNG.
This was seen as a practical measure, to get more kina into household budgets, around the country.
Mr Ling-Stuckey
PNG does not have a formal social security system. Support for schools fees and project fees are probably the most practical option we have, to help families around the nation deal with cost of living pressures.
We initially estimated the cost at K126 million.
The Department of Education has now indicated the total cost will be K160 million.
This Supplementary Budget provides the full K160 million in funds for this critical program.
I now expect the Department of Education, to urgently put in place, the processes for getting these funds out to schools and to households.
I would have preferred an initial amount had gone out earlier in the year but have been reassured that the program will not be delayed further.
Once again, there is a salary cost over-run.
This is K201 million, much lower than in previous years, and of this, over 70 per cent is related to teacher wage over-runs.
We continue to bring this area under control. After no pay increases during the latter part of the COVID 19 crisis, it is now time to start increasing some salary payments.
And if it is, then the Marape government’s focus, on key performance indicators, will quickly bring those responsible to account.
Mr Ian Ling-Stuckey, Papua New Guinea Treasurer