|
Transfer
type |
Method
to determine size of the total transfer |
Method
to determine share provided to each government |
Size
of total transfer (2005 Budget estimate, Kina millions) |
Provinces
receiving transfer |
Restrictions
on use of this resource |
| Transfers of revenues |
|
Inland
Goods and Services Tax
(transfers
made by the Internal Revenue Commission) |
Each
Province and NCD receives 60%,individually, of the net inland GST
collected there;
OR
Their
2003 distribution
(whichever
is the higher).
|
Derivation
- where the revenue was collected. |
K157m |
All
provinces and NCD |
None |
|
Mining/oil
royalties
(transfers
made by the respective resource companies)
|
There
are different shares of royalties transferred to Provincial Governments.
These are set out in the Memorandum of Agreement for the project.
|
Derivation
- to the Province the project is located in. |
K73m |
6
- Western Province, Central, SHP, Enga, EHP, NIP |
None |
|
Dividends
from equity in mining and oil projects
(transfers
made by the Minerals Resource Development Company, and by Ok Tedi
Sustainable Development Program in the case of Western Province)
|
Depends
on the Provincial Government's share of the project. |
Derivation
- to the Province owning equity in the mining or oil project |
K16m
(2003
actual) |
4
- Western Province, Gulf, SHP, Enga |
None |
Transfers of recurrent
grants
(transfers
made by the Department of Finance) |
|
Staffing
grants (Organic
Law for permanent public servants, teachers)
|
Total
cost of salaries for permanent provincial public servants and teachers |
|
K516m |
All
provinces |
Paid
directly to approved permanent public servants and teachers
only |
|
Organic Law
non-staffing recurrent |
Mandated
in the Organic Law schedules |
Formula
(mostly equal Kina per head; land and sea area have small
weightings)
|
K68m |
All
provinces
|
Conditional
- can be used for non-staffing operational costs only |
|
Organic Law
economic grant – Derivation Grant |
0.75%
of "eligible exports" (non-mining and oil exports for
which the origin can be determined)
|
Derivation
|
K12m |
All
provinces |
Conditional - must be spent on activities that contribute to export
development |
Infrastructure grants
and transfers |
|
Development
budget (PIP) grants |
Budget
decision of the National Government |
Budget
decision - grants fund the entire approved project |
K14m
|
10
- WP, Gulf, Central, EHP, Morobe, ESP, Sandaun, ENB, Bougainville |
To
be spent on the approved infrastructure project only. Cash transfers
are made intermittently against progress on the project
|
|
Special
Support Grant |
2%
of the FOB (free on board - excluding freight and insurance costs)
value of the respective mining and oil exports |
Derivation
- to the Province the mine is located in. |
K7m |
6-
WP, Gulf, Central, SHP, Enga, NIP |
To
be spent on the approved infrastructure project only. Cash transfers
are made intermittently against progress on the project
|
|
Tax
Credit Scheme (TCS)
(transfer
funded by the National Government, in foregone corporate
taxes) |
Up
to 0.75% of the value of corporate tax liabilities incurred
by resource companies |
Derivation
- to the Province the mine is located in. |
K86m |
7
- WP, Gulf, SHP, Enga, Madang, Sandaun, WNB
TCS
is also used to fund H'lands Hwy maintenance (National Government
function) in WHP, Simbu, EHP and Morobe
|
Expended
by the resource company, mostly on approved infrastructure projects
and maintenance of some Provincial Government infrastructure |
TOTAL TRANSFERS
AND GRANTS |
K949m |
