The National Economic & Fiscal Commission

05/08/2026

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The National Economic and Fiscal Commission (NEFC) and its partner agencies have taken the Provincial Health Authority (PHA) Cost of Services Study to Milne Bay Province, marking the next phase of a nationwide initiative to strengthen health financing and improve service delivery across Papua New Gu...

03/08/2026

PHA Costing Study Expands to Milne Bay
The National Economic and Fiscal Commission (NEFC) and its partner agencies have taken the Provincial Health Authority (PHA) Cost of Services Study to Milne Bay Province, marking the next phase of a nationwide initiative to strengthen health financing and improve service delivery across Papua New Guinea.

Following the successful pilot exercise in Gulf Province, the study team is now working closely with the Milne Bay Provincial Health Authority to assess the actual cost of delivering governance, administration, hospital and curative health services under the Provincial Health Authority system.

The study is being undertaken jointly by the NEFC, the National Department of Health (NDoH), the Department of Treasury and the Department of Provincial and Local Level Government Affairs (DPLGA) as part of ongoing reforms under the Intergovernmental Financing Arrangement Review (IGFAR).

NEFC Chairman and Chief Executive Officer Alphonse Kapi Malipu said the study is a critical step towards ensuring government funding reflects the true cost of delivering health services in every province.

"Provincial Health Authorities have transformed the way health services are managed in Papua New Guinea. This study will provide the evidence needed to develop a fair, transparent and sustainable funding model that supports quality healthcare for our people," Mr. Malipu said.

The Milne Bay exercise builds on lessons from the Gulf pilot, where the study methodology and data collection tools were successfully tested. The refined approach is now being applied to gather detailed information on staffing, infrastructure, equipment, operational costs and service delivery across the Provincial Health Authority.

During the exercise, the study team will engage with the Provincial Health Authority's management, hospital administrators and technical officers to collect data that will contribute to a comprehensive national costing framework.

The findings will help inform evidence-based health financing decisions, improve the allocation of function grants, strengthen coordination between national and provincial governments, and support long-term sustainability of Provincial Health Authorities.

Milne Bay is one of eight Provincial Health Authorities selected for the nationwide study, with provinces representing the Southern, Highlands, Momase and Islands regions. The information gathered from each province will contribute to the development of a national funding framework that aligns financial resources with the actual cost of delivering essential health services.

As the study progresses across the country, the NEFC and its partner agencies remain committed to working closely with provincial governments and Provincial Health Authorities to strengthen health systems and ensure Papua New Guineans have access to better-funded and more effective health services, regardless of where they live.

14/07/2026

"Media Partnership Strengthens PHA Cost of Services Study Awareness in Gulf Province"
We wish to express our sincere appreciation to NBC Gulf for supporting public awareness of the Provincial Health Authority (PHA) Cost of Services Study currently underway in Gulf Province.

NEFC acknowledged NBC Gulf Journalist-in-Charge Dania Namari and broadcaster Yulanda for making time to interview the study team leaders, Mala Marare from NEFC and Wilfred Moses from the National Department of Health.

The interview provided an opportunity to inform the people of Gulf Province about the purpose and importance of the study and its expected benefits for the health sector.

NEFC recognises the media as a key partner in promoting public understanding and supporting policy reforms. Through timely and accurate reporting, the media plays an important role in raising awareness and keeping communities informed on initiatives that strengthen service delivery.

The Commission also extended its appreciation to Gulf Provincial Health Authority Chief Executive Officer Dr. Elvis Japhet for providing office space to facilitate the interview and for his continued support of the study. NEFC welcomed the positive feedback from Dr. Japhet, who reaffirmed the importance of the study in strengthening health financing and improving health service delivery across the province.

The PHA Cost of Services Study is a collaborative initiative between the National Economic and Fiscal Commission, the National Department of Health, the Department of Treasury, and the Department of Provincial and Local Level Government Affairs.

The findings of the study will help inform evidence-based health financing decisions and contribute to a stronger and more sustainable provincial health system in Papua New Guinea.

14/07/2026

Day 2 Tuesday 14th July 2026 | PHA Cost of Services Study – Gulf Province

Day Two of the Provincial Health Authority (PHA) Cost of Services Study is underway in Gulf Province, with the focus shifting to the administration of study instruments and questionnaires for Kikori and Malalaua Level 4 Hospitals, Kerema Provincial Hospital.

The exercise is being conducted collaboratively by the National Economic and Fiscal Commission (NEFC), the National Department of Health (NDoH), the Department of Treasury, and the Department of Provincial and Local Level Government Affairs (DPLGA) as part of the pilot study.

The NEFC and its partner agencies sincerely appreciate the strong support and commitment shown by the Gulf Provincial Health Authority. The outstanding attendance and active participation by hospital representatives and PHA officials reflect Gulf PHA's commitment to strengthening health service delivery through evidence-based planning and financing.

The information gathered during this phase of the study will contribute to developing a more accurate cost of delivering provincial health services, supporting better funding decisions, improved accountability, and a stronger, more sustainable health system for Papua New Guinea.

13/07/2026

PHA Costing Study Commences with Pilot exercise in Gulf Province
The National Economic and Fiscal Commission (NEFC), in partnership with the National Department of Health (NDoH), Department of Treasury, and the Department of Provincial and Local Level Government Affairs, has commenced the Provincial Health Authority (PHA) Cost of Services Study with a pilot exercise in Gulf Province today, 13 July 2026.

The pilot began with an awareness workshop attended by senior officials of the Gulf Provincial Health Authority, including Chief Executive Officer Dr. Elvis Japheth, directors, and senior management from Kikori and Malalaua Level 4 Hospitals.

The workshop featured two key presentations. NEFC Team Leader Mala Marare presented on the Intergovernmental Financing Arrangement Review (IGFAR) reform context and the need for a new approach to health financing. The presentation outlined the limitations of the current costing model and introduced the expanded PHA Cost of Services Study, which will assess curative services, public health programs, hospital services, as well as administrative and governance functions. It also highlighted the expected policy outcomes and the next steps for national and provincial governments.

Representing the National Department of Health, Wilfred Moses and Lesi Gabriel presented on the country's current health financing challenges, ongoing reforms, key financing initiatives, and findings from the Cost of Services Study for Level 1–3 health facilities. The presentation demonstrated how the study will support broader health sector reforms and strengthen service delivery across the country.

Welcoming the study team to Gulf Province, Gulf Provincial Health Authority Chief Executive Officer Dr. Elvis Japheth described the initiative as timely and important for strengthening health service delivery in the province.

The PHA Cost of Services Study aims to improve accountability in health service delivery, align financing with service delivery responsibilities, and strengthen provincial health systems throughout Papua New Guinea.

The study's findings will support evidence-based health financing decisions, improve the allocation of function grants, strengthen coordination between national and provincial governments, and promote sustainable financing for provincial health systems.

10/07/2026

NEFC, Key Government Agencies Prepare to undertake pilot study on Provincial Health Authority Cost of Services Study in Gulf
The National Economic and Fiscal Commission (NEFC), in partnership with the National Department of Health (NDoH), the Department of Treasury, and the Department of Provincial and Local Level Government Affairs (DPLGA), is set to commence the 2026 Provincial Health Authority (PHA) Cost of Services Study with a pilot exercise in Gulf Province.

The pilot study will be conducted from 13–17 July 2026, focusing on the Gulf Provincial Health Authority as the first PHA for the nationwide initiative.

The study forms part of ongoing efforts by the four government agencies to strengthen evidence-based planning and improve the financing of health service delivery across Papua New Guinea.

Led by the NEFC Cost and Finance Team, the study aims to determine the actual cost of delivering governance, administration and hospital services under the Provincial Health Authority system. The findings will provide a stronger foundation for future health sector funding arrangements and support the implementation of the Intergovernmental Financing Arrangement Review (IGFAR).

The pilot study will specifically establish baseline costs for health services delivered under the Curative Health Directorate at Malalaua District Hospital and Kikori District Hospital (Level 4 hospitals), as well as Kerema General Hospital (Level 5).

A one-day awareness workshop will be held on Monday, 13 July 2026, bringing together officials from the Gulf Provincial Administration and key stakeholders to provide an overview of the study and encourage active participation throughout the exercise.

The NEFC has extended its appreciation to the Gulf Provincial Administration for its longstanding support and collaboration, acknowledging the importance of strong partnerships in improving service delivery outcomes for Papua New Guineans.

The Commission looks forward to working closely with the Gulf Provincial Health Authority, provincial administration and partner agencies to ensure the successful implementation of the pilot study, which will contribute to more equitable and sustainable health financing across the country.

The PHA Cost of Services Study team is scheduled to travel to Gulf Province on Sunday, 12 July 2026, ahead of the commencement of the study.

08/07/2026

NEFC Pleased to Contribute to CLRC Law Reform Review
The National Economic and Fiscal Commission (NEFC) is pleased to have participated in the consultation and review process led by the Constitutional and Law Reform Commission (CLRC) under Terms of Reference No. 23 – Review of the Laws Relating to the Monitoring and Evaluation of Public Funds.

The stakeholder seminar, held in Port Moresby, marked the conclusion of the consultation phase, bringing together key government agencies, stakeholders and members of the public to discuss the findings and proposed law reform recommendations contained in the CLRC's draft report.

As an institution committed to promoting transparency, accountability and effective public financial management, NEFC values the opportunity to contribute its expertise to this important review. Strengthening the legal framework for monitoring and evaluating public funds is essential to improving service delivery and ensuring that public resources are used efficiently and effectively for the benefit of all Papua New Guineans.

NEFC thanks the Constitutional and Law Reform Commission for facilitating an inclusive consultation process and looks forward to supporting future reforms that strengthen governance, accountability and equitable service delivery across Papua New Guinea.

02/07/2026

NEFC, National Agencies Commended for Landmark Bougainville Cost of Services Report

The National Economic and Fiscal Commission (NEFC), together with the Department of Prime Minister and National Executive Council (DPM&NEC), the Department of Treasury and other key government stakeholders, has been commended for successfully completing the Autonomous Bougainville Government (ABG) Cost of Services Report, a landmark study expected to guide Bougainville's fiscal planning and future governance.

Acting President of the Autonomous Bougainville Government and Minister for Treasury and Finance, Hon. Albert Punghau, made the commendation while officially launching the report, titled "From Here to There," at Kukul Beach Resort in Buka on the 23rd June 2026.

The report is the culmination of a collaborative exercise initiated in 2023, when the NEFC, in partnership with the Department of Prime Minister and NEC, the Department of Treasury and the Autonomous Bougainville Government, undertook a comprehensive costing study to determine the true cost of administering government and delivering essential public services across Bougainville.

The study was completed in 2024.
Describing the report as a critical roadmap for Bougainville's future, Mr. Punghau said it provides the first comprehensive assessment of the financial resources required for the Autonomous Bougainville Government to exercise full government powers as it progresses towards its political aspirations.

"The launch of the Cost of Services Report, From Here to There, marks a significant milestone in helping Bougainville better understand the real cost of government administration and service delivery," Mr. Punghau said.

He revealed that the report estimates Bougainville would require approximately K1.3 billion annually to effectively perform all government functions—almost double its current annual budget appropriation of K751.47 million.

"The report reveals that Bougainville requires K1.3 billion per year to fully carry out its mandate of government," he said.

Mr. Punghau also acknowledged that Bougainville remains heavily reliant on grants from the Papua New Guinea National Government, with internally generated revenue accounting for only a small proportion of its overall budget.

Also speaking at the launch, ABG Secretary for Treasury and Finance Joshua Tauko said the report offers a realistic assessment of the financial resources needed to provide services throughout Bougainville's geographically challenging environment.

Mr. Tauko explained that the study was commissioned following the Autonomous Bougainville Government's request for a more comprehensive understanding of the costs associated with carrying out its expanding government responsibilities.

According to Tauko, the report accurately reflects the realities of delivering services across remote islands, scattered communities, rugged terrain and areas where transportation and accessibility significantly increase operational costs.

He said the findings would provide both the Autonomous Bougainville Government and the Papua New Guinea Government with a common evidence base to guide future discussions on funding arrangements, government responsibilities and sustainable service delivery.

Meanwhile, NEFC Chairman and Chief Executive Officer Alphonse Kapi Malipu highlighted the credibility and long-term value of the report in strengthening planning, budgeting and policy decisions.
"I believe ABG's development partners will be interested in looking at the report. It is credible and must be adhered to," Mr. Malipu said.

"I am delighted to say and trust that this report, From Here to There, is forward-looking and will prove useful to the ongoing discussions between the National Government and the Autonomous Bougainville Government."

Mr. Malipu also extend his gratitude to the Department of Foreign Affairs and Trade (DFAT) for the technical assistance provided under the APSP Support. Without this technical support, the completion of the report would no be possible.

The Cost of Services Report is expected to serve as a key planning instrument for both governments as they work together to improve service delivery, strengthen fiscal sustainability and support informed decision-making on Bougainville's future governance and development.

🎥Highlights of the initial stages of the study to its completion in 2024 until the Official Launch on 23rd June 2026.

01/07/2026

NEFC Leads Key Education Policy Review to Improve Funding Equity
The National Economic and Fiscal Commission (NEFC) has taken another significant step towards strengthening Papua New Guinea's education financing system by convening a second stakeholder meeting on Tuesday, 30 June 2026.

The meeting brought together representatives from the National Department of Education (NDoE), the Teaching Service Commission (TSC), and the PNG Teachers Association (PNGTA) to discuss three critical policy areas under the Education Sector Review, which forms part of the broader Intergovernmental Financing Arrangement Review (IGFAR).

Discussions focused on reviewing the Papua New Guinea Accessibility Ranking Index (PARI), the Government Tuition Fee Subsidy (GTFS) Funding Formula, and Teachers' Hardship Allowances.

Stakeholders acknowledged that the current PARI Index, last updated in 2014, no longer accurately reflects the accessibility of many schools due to significant improvements in transport and other infrastructure over the past decade. As a result, the existing classifications may no longer provide an accurate basis for determining school funding and teachers' hardship allowances.

Stakeholders had discussion surrounding the key issues relating to Teachers Hardship Allowances. Currently, the teachers are receiving hardship allowances based on the PARI category of ranking schools according to remoteness category. The outdated data will affect classification of schools which are remote and which are accessible.

The meeting also highlighted challenges affecting the GTFS funding formula, particularly delays in the submission of Teachers' Resumption Forms and student enrolment data. Participants agreed that improving the timeliness and accuracy of these submissions is essential to ensure funding allocations are based on reliable, real-time information.

A key outcome of the meeting was the agreement to establish a Technical Working Group (TWG) with clearly defined Terms of Reference (TORs) to drive the review of these three important policy areas. The review is expected to be completed within the next 18 months.

The Education Sector Review forms part of NEFC's ongoing work under the Intergovernmental Financing Arrangement Review and demonstrates the Commission's continued commitment to delivering evidence-based policy advice to the National Government.

The recommendations from this review will support more equitable education funding, improve service delivery, and ensure public resources are directed where they are needed most.

25/06/2026

We convey our sincere gratitude to the Department of Prime Minister and NEC, the Department of Treasury and other National Government Agencies who have contributed meaningfully to this study.