In paving the way forward to achieving a reform on the current intergovernmental financing arrangements and to have a fiscal transfer system that is integrated and intact for the flow of services from the National down to the sub-national governments, the Intergovernmental Financing Arrangements Review (IGFAR) remains the key priority project for the National Economic & Fiscal Commission to be undertaken in 2024 and onwards.
As part of the review process, the Technical Working Group (TWG) on the Intergovernmental Financing Arrangements Review (IGFAR) had its first meeting for the year 2024 on Friday 23rd February in Port Moresby to present the key findings and recommendations from the Regional Consultations held in 2023 for the sub-national administrations.
While consultations started last year for the sub-national levels, this year 2024 is the second year of consultations for the National Agencies. The TWG met to discuss a way forward to progress this year’s consultations for the National Agencies.
According to the National Economic and Fiscal Commission, the Technical Working Group was first established in 2022 and the purpose of the TWG is to undertake the technical works surrounding the systems and processes of the Intergovernmental Financing Arrangements System. The Technical Working Group is the working group that runs the whole process or the undertakings of the review behind the scenes.
According to the NEFC, the review process involves a collaborative effort put together by all the National Agencies that are part of the Provincial Local Level Services Monitoring Authority sub-committee on IGFAR. There are 13 key line member agencies led by the National Economic and Fiscal Commission and the Department of Treasury.
The key line agencies are the Departments of Treasury, Finance, National Planning, Justice and Attorney General, Provincial and Local Level Government Affairs, Personnel Management, Implementation and Rural Development, PM & NEC, Constitutional Law Reform Commission, National Research Institute, Auditor-Generals Office and the Internal Revenue Commission.
According to the NEFC, the review is interconnected with the bigger decentralization policy focusing on the aspect of fiscal decentralization.