The National Economic & Fiscal Commission has revealed that a total of K7.8 billion has been distributed as Function Grants to sectors at the subnational level since 2009.

NEFC Chairman and Chief Executive Officer Patrick Kennedy Painap says within a span of 14 years, since 2009 when the Intergovernmental Financial Agreement was first reformed and introduced, the function grants have increased from K135m to K770m.

According to Mr. Painap, the growth in the allocation of function grants has been increasing at an average rate of 10% each year on average.

Painap says additionally, around K7 billion in GST revenue has also been given to Provinces since 2009

Mr. Painap stated since 2009, Core Sectors have been given priority with Health at K1.2 billion, Infrastructure- at K1.7 billion, and Education –at K1.3 billion.

NEFC Chairman and CEO Mr. Painap says in the next 3 years based on the current average growth of 10%, they are anticipating a total of K1 billion a year as Function grants to be distributed to support the key Sectors.

Painap adds that there will also be an increase in GST revenue from K700 million to an estimated K1 billion in the next 3 years.

Painap says that based on NEFC’s assessment the provincial fiscal capacity has significantly improved compared to 2009.

With over K7.8 billion being given in function grants since its inception in 2009 with an additional K7 billion in GST, Painap says these are just two fiscal transfers alone.

However, he says when considering the SIP funds, PIP, and donor grants to the sub-nationals, the total envelope of fiscal transfers has been enormous.

Mr. Painap says the increased funding over the years has provided a vital lifeline for service delivery mechanisms adding that with this increased funding, it becomes the collective responsibility to ensure that these resources are not just financial injections but catalysts for service delivery.