Regulations & Policies

The NEFC’s operations are governed by the following legislations and relevant regulations. The NEFC is established under section 187H of the constitution of PNG to provide impartial and independent advice to the National Executive Council (NEC) and the Government. The overarching mandates of the NEFC as provided in the constitution are:

Assess and monitor the economic and fiscal policies of the national, provincial and local level governments
Advise and recommend to the National Executive Council appropriate economic and fiscal policies
Make recommendations to the National Executive Council and the National Parliament on the intergovernmental financing arrangements and administration of grants.

The functions, responsibilities and policies of the NEFC are further specified under the following principle legislations:

The Organic Law on the Provincial and Local level Governments (OLPLLG) 1998 – Section 117
Intergovernmental Relations (Functions and Funding) Act 2009 and
The National Economic & Fiscal Commission Act 2009

Constitutional provisions on decentralisation

There shall be a system of Provincial Governements and Local-level Governments for Papua New Guinea in accordance with this Part. An organic Law sahll provide for, or make provision in respect of, the form and the manner of establishment of the Provincial Goevernments and the Local-level Goverments.

Constitution of PNG Final

United in one nation, pay homage to the memery of our ancestors - the source of our strength and origin of our combined heritage, acknowlegde the worthy customs and traditional wisdoms of our people - which have come down to us from generation ans pledge ourselves to guard and pass on to those who come after us our noble traditions and the Christian principles that are ours now.

Budget and Expenditure instructions May 2010

On Wednesday of 16^th July 2008, the National Parliament passed amendments to the Organic Law on Provincial Government and Local-Level Governments establishing a new system for funding good and services in Provinces and Local Level Governments.