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