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Papua New Guinea

Fiscal Data (PNG0006)



Action Plan: Papua New Guinea Action Plan 2018-2020

Action Plan Cycle: 2018



Lead Institution: Department of Treasury, Auditor General's Office

Support Institution(s): • Dr. Ken Ngangan, Department of Finance • Samuel Koney, A/Secretary Department of National Planning and Monitoring, • Dickson Guina, Secretary, Department of Provincial and Local Levb Government Affairs • Hohora Susuve, Chairman and Director, National Economic Fisec Commission • Lucas Alkan, EITI Secretariat • Commissioner-General, Internal Revenue Commission • Raymond Paul, Commissioner, PNG Customs Institute of National Affairs (INA), Transparency International PNG (TIPNG Consultative Implementation & Monitoring Council (CIMC), PNG Resourc Governance Coalition, PNG Council of Churches, National Council of Women, PNG ACT Now, Port Moresby Chamber of Commerce & Industry, Europea: Union, World Bank, IMF, UNDP.

Policy Areas

Access to Information, Anti Corruption and Integrity, Audits, Capacity Building, Democratizing Decision-Making, E-Government, Fiscal Openness, Legislative Oversight, Local Commitments, Open Contracting, Open Data, Open Parliaments, Oversight of Budget/Fiscal Policies, Participation in Lawmaking, Public Participation, Public Participation in Budget/Fiscal Policy, Public Procurement, Publication of Budget/Fiscal Information, Regulatory Governance, Social Accountability

IRM Review

IRM Report: Papua New Guinea Hybrid Report 2018-2021

Starred: Pending IRM Review

Early Results: No IRM Data

Design i

Verifiable: Yes

Relevant to OGP Values: Not Relevant

Potential Impact:

Implementation i



Problem/Issue to be addressed: Details of the Public Accounts have not been made publicly available in a comprehensive and timely manner. Government departments/agencies and other subsidiary bodies have not been submitting timely financial statements to the Department of Finance to then submit to the Office of the Auditor General for audit and presentation to Parliament, thus resulting in PNG's annual audit reports not being made available to the public in a timely manner.; Main Objective: Make fiscal information available to the public in an accurate, comprehensive and timely manner, throughout the Budget cycle (notably, including the eight (8) principal documents widely considered fundamental to providing Budget transparency, and posted on respective government, Parliamentary and/or audit websites). This includes having full and timely annual audit reports made public on the AGO website, as well as pre-budget statements, through to In­Year, Mid-Year and Final Budget Outcome reports available, in machine­readable format, on respective government and/or Parliament websites,(notably: Treasury, which is responsible for publishing the Budget Submission and associated legislative Bills and the pre-budget through to end of year reports; the Auditor-General's website for the Audit of the public finances; the Parliament website for the certified Budget Appropriation and related Budget legislation), which provide citizens access to needed current fiscal information on: 1) The Public Accounts of PNG; 2) The Pre-Budget Statement 3) The Proposed Budget, showing forecast Budget parameters, revenue and planned expenditure, with respect to: • the National Government Departments and Agencies; • Provincial Governments and Local Level Governments; and • Statutory Authorities (and other entities operating as Authorities, including DDAs), State-owned enterprises and their Subsidiaries, and National Government Shareholdings in Other Companies 4) The Approved Budget (Appropriation and other Budget legislation) 5) In-Year Fiscal Updates 6) Mid-Year Economic and Fiscal Report 7) Final Budget Outcome Report 8) A Citizens' Budget, (prepared by Treasury (and Planning) but with civil society engagement in dissemination); Complimentary Objectives: Sub-national Budget documentation and Accountability: rolling out parallel Open Budget and Accountability mechanisms and public participation at the Provincial, District and LLG levels, with Open Government Partnership principles (with DoF, DPLGA, DIRD, with CIMC and other civil society entities) • Public Participation: As per the separate Public Participation cluster, t­ensure systematic public engagement throughout the Budget preparatio and oversight phases, (including through the CIMC consultation process). notably with the Executive through routine public availability (online) c Budget material and invitation to the public to contribute views, priorities and feedback through the Budget cycle, and with the audit process (with th Auditor-General's Office) and oversight mechanisms with the Legislature, notably through the Budget and Parliamentary Public Accounts Committe1 Also consultation and engagement in longer term planning and oversighL mechanisms, including medium term development and fiscal plannin­processes, at national and sub-national levels, • Open Public Procurement: Adhere to the principles of Open Contracting Global Principles in public procurement (and with othe agreements/contracting/licensing undertaken by the State), including public disclosure of documents at all stages of contracting, consistent wit the Open Contracting Data Standard (OCDS); notably: • Affirmative Disclosure, namely the commitment to affirmative) disclose of documents and information related to publk contracting in a manner that enables meaningful understandinr and • Public Participation, Monitoring and Oversight to enable effective monitoring, efficient performance and accountabilit outcomes Le2islature En2a2ement: Ensure Parliamentary engagement at differer._ stages of the Budget cycle, from drafting to public accounts oversight.
Another objective which is important is to maintain PNG's eligibility as a member of the OGP, in terms of the specified criteria, and to progressive]·· improve standards, and enable PNG to exercise a leadership role in governanc issues in the region.; Brief Description of Commitment: The commitment is focused upon the timely and comprehensive pubh. provision and public release of fiscal details, throughout the budget cycle, right through to the audit of public funds, to enable the public to engage meaningfull in the budget process, from its preparation stages through to contributing to holding the government accountable, at national and local levels, for th efficient use of public funds in the public interest. Engagement by Parliamer with the public and through the budget process, and full transparency in public procurement and other contracting are also critical to effective and accountable government operations. Section 214 (1) of the Constitution states that "The primary functions of the Auditor-General are to inspect and audit, and report at least once in every fiscal year (as provided by an Act of the Parliament) to the Parliament on the public accounts of Papua New Guinea, and on the control of and on transactions with or concerning the public monies and property of Papua New Guinea, and such other functions as are prescribed by or under a Constitutional Law". Although the Constitution states for the Office of the Auditor General to inspect, audit and report to Parliament on the public accounts of PNG at least once in every fiscal year, it is clearly evident that this is not the case.; OGP Grand Challenge address by the Commitment: Increasing Public Integrity -This commitment to providing timely, accurate and accessible fiscal data is expected to contribute towards greater transparency and allow PNG citizens to monitor better the source and use of public resources. It would also help to reduce opportunities for fraud, corruption and waste, and gives citizens power to follow the money.; Relevance - Briefly describe the way in which this commitment is relevant to further advancing OGP values of access to information, public accountability, civic participation, and technology and innovation for openness and accountability: Fiscal Transparency is one of the four main eligibility criteria for joining the OGP. Any country wishing to participate in OGP needs to meet minimum eligibility requirements. Having timely annual audit reports made public is a requirement of the OGP. PNG is currently eligible to participate in OGP with a score of 12 out of 16 possible points. However, the Open Budget Survey, from which the OGP draws its data, shows that PNG has lost 2 points because the government's audit report has not been made publically available. Improving the openness and comprehensiveness of budget and procurement details in a timely manner, associated with the OGP National Action Plan, to achieve positive governance improvement, would also raise PNG status in various international governance indicators (including the Open Budget Index, etc); Ambition: Briefly describe the intended results of the commitment and how it will either make government open or improve government through more openness: This commitment aims to ensure that details on public monies and resources (including borrowings) from the planning stage through to actual expenditure and audits, entailing National Government departments/agencies, Provinces and local governments, public authorities and other State owned bodies and their subsidiaries, are made available in a comprehensive and timely manner for the citizens of PNG, and that associated processes with respect to the utilisation of public finance and resources, including public procurement and contracting, are released full and promptly It is also intended that this commitment will lead to improving financial transparency and management practices within Government departments/agencies and other subsidiary bodies.; Variable and Measurable milestones to fulfill the commitment: Milestone 1 -Audit of Public Accounts. Audit compliance from timely submissions of comprehensive financial statements to AGO, to timely release of the reports of Public Account to Parliament and the public (which in turn requires adequate funding and human resources); Milestone 2 -Rollout the Integrated Financial Management System (IFMS) to all government bodies including sub-national level in accordance with schedule, to facilitate timely updates and sound management of public funds; Milestone 3 -Parliamentary oversight. For Treasury & Finance to engage meaningfully with a Parliamentary Committee on the Budget during preparation of the Budget, and for an adequately resourced Parliamentary Public Accounts Committee to engage with respective public bodies on the outcomes of the Audit reports, and to engage in turn with Civil Society.; Milestone 4 -Providing in-year fiscal reports on the Treasury website. Produce and release publicly monthly, or initially at least quarterly, fiscal update reports.; Milestone 5 -Following approval of new Public Procurement Policy, draft apply legislation on public contracting which adheres to the principles of Open Contracting, whereby the process is open, competitive and entails full public disclosure and provides adequate time equally for all prospective applications/ proposals/ bids/ to be prepared and submitted, with the public having full access to the tender documents, details of potential bidders and their interest and beneficial ownership, and the process and outcomes of the tender, or other public contracting arrangements.; Milestone 6 a- Develop a Citizens' Budget- Government to produce a clear, but simpler and explanatory version of the budget in summary explaining 1) the economic assumptions underlying the budget; 2) the budget process; 3) revenue collection; 4) debt repayment as a share of the budget; 5) priorities in allocations and spending; 6) official development assistance sources; 7) sector-specific information and information about targeted programs; 8) sub- national allocations and for what purpose; 9) contact information for follow up by citizens. Government to make Citizens' Budget available for wide public dissemination, by government or civil society bodies, across the provinces and into rural areas. Relevant data on related revenue or expenditure for the two preceding years to be provided. (This will also provide a model for future Citizen's Budgets at the sub-national level); Milestone 6b - Dept. of Treasury, Finance, National Planning, together with CIMC, to design and implement a system for timely and systematic participation by the public in the Budget process, from preparation through to oversight, with CIMC, INA, TIPNG and other CSOs, to undertake public awareness about the budget process and composition, including the Budget outcomes, and requirements under the Public Finances (Management) Act, as revised.; Milestone 7a -CIMC with TIPNG and other CSOs undertake budget tracking/social auditing activities at sub-national level. Schedule 6 districts per year. Milestone 7b - TIPNG, CIMC & INA with sub­national CSOs work with, oversight organisations such as the Auditor General and Ombudsman Commission to encourage public feedback on public financial management concerns and complaints. Milestone 7c - Joint Milestone facilitated through the Public Participation Cluster; Dept of Finance and other Govt bodies, Audit General Office and Parliament to cooperate with Civil Society bodies (notably CIMC, TIPNG, & INA and sub-national CSOs) to help design/apply suitable feedback mechanisms (e.g. Civil Society Forums, PNGRGC, etc.) for feedback on public sector accountability, and public goods/service standards etc.

IRM Midterm Status Summary

6. Access to Fiscal Data

Verifiable: Yes

Relevant to Open Government: Yes

Potential impact: Minor

Completion: Limited

The Integrated Financial Management system (IFMS) was rolled out to most central government bodies and some provincial government bodies but had not yet reached the district level as of September 2021. [41] By January 2022, the Papua New Guinea Open Government Partnership Secretariat reported that IFMS had reached 75% of districts. [42] This system exclusively facilitates information sharing between government agencies. [43]

The remainder of the commitment’s milestones did not progress. According to the Institute of National Affairs, implementation was not started on the intended audit of public accounts, parliamentary oversight improvements, citizen’s budget, or budget tracking and social auditing at the subnational level. [44] There were also no in-year fiscal reports for 2020 available on the Treasury website, [45] meaning that these reports have not been made publicly available at any time over the past decade. [46] The Open Budget Survey shows that from 2010–2019, in-year fiscal reports were not been made publicly available. [47] The National Procurement Commission reports that the initiative to apply legislation on open contracting was not started due to financial constraints and conflicting political interests. [48]

According to the Papua New Guinea Open Government Partnership Secretariat, implementation of this commitment faced obstacles including weak ownership by the Department of Treasury and the Department of Community Development and Religion, as well as funding issues and COVID-19 restrictions. [49] Given the importance of this commitment area to OGP eligibility requirements, the IRM recommends prioritizing future efforts to publish the enacted budget, citizen’s budget, in-year reports, and the audit report of the government's financial statements online in a timely manner. It would also be valuable to consider non-internet based fiscal transparency efforts, through radio, in-person meetings, and other mechanisms.

[41] Tom Tiki (Dept. of Finance), presentation at National Steering Committee meeting, 5 Aug. 2021.
[42] Kopio, interview.
[43] Tiki, presentation.
[44] Paul Barker (Institute of National Affairs), interview by IRM researcher, 10 Sep. 2021.
[45]See Department of Treasury Website:
[46] Open Budget Survey, “Open Budget Survey 2019: Papua New Guinea” (accessed 6 Jan. 2022)
[47] Open Budget Survey, “Open Budget Survey 2019: Papua New Guinea.”
[48] Johnson Hebe (National Procurement Commission), interview by IRM researcher, 4 Sep. 2021. 
[49] Kopio, interview.


Open Government Partnership