PAPUA NEW GUINEA

No.39 of 2016.
Appropriation (General Public Services Expenditure 2017) Act 2016.
Certified on: 22 DEC 2015

ARRANGEMENT OF SECTIONS.
1. Grant for General Public Service Expenditure of K21,088,585,217.
2. Appropriation.
3. Adjustment of Appropriations through the Secretary's Advance for new activities and between activities.
4. Adjustment of Appropriations between activities.
5. Adjustment of Appropriations for activities identified in Division 207.
6. Adjustment of Appropriations for directly funded capital expenditure.
7. Adjustment of Appropriation for Capital Expenditure Funded by Grants.
8. Adjustment of Appropriation for Capital Expenditure Funded from Concessional Loans.
9. Reallocation of amounts from Division 299 - debt services.
10. Delegation of powers.
11. Transfer of activities between agencies.
12. Directions to be published.
13. Directions to reallocate Appropriations to be available to Auditor-General.
14. Direction for Expenditure Appropriated to Trusts.
SCHEDULE 1.
SCHEDULE 2.

AN ACT
entitled
Appropriation (General Public Services Expenditure 2017) Act 2016,
Being an Act to appropriate out of the Consolidated Revenue Fund a sum for the General Public Service for operational and capital expenditure for the year ending 31 December 2017,
MADE by the National Parliament.
1	GRANT OF K21,088,585,217.00.
Subject to authorisation from the Treasurer, the Secretary for Treasury may issue out of the Consolidated Revenue Fund and apply for the activities of the General Public Service for the year ending 31 December 2017 the sum of K21,088,585,217.00 consisting of ‑
	(a) operational expenditure of K17,157,785,215.00; and
	(b) capital expenditure of K3,930,800,000.00 on -
	(i) direct Government financing of K2,509,865,000.00; and
	(ii) concessional loans of K452,835,000.00; and
	(iii) donor grants of K968,100,000.00.
2	APPROPRIATION.
Sums granted by this Act out of the Consolidated Revenue Fund for the year ending 31 December 2017 are appropriated for the activities of the agencies listed in the Schedule of this Act in the year ending 31 December 2017 as follows:
	(a) for the purposes of identifying the activities of agencies referred to in this Act, Volume 2, A, B, C and D of the 2017 Budget Books may be considered relevant documents; and
	(b) for the purpose of identifying the capital expenditure referred to in this Act Volume 2, A, B, C and D of the 2017 Budget Publications are to be considered relevant documents; and
	(c) where additional donor grants are received in the year ending 31 December 2017, they may be issued out of the Consolidated Revenue Fund and appropriated to capital expenditures with the approval of the Treasurer; and
	(d) in the event that amounts appropriated for either donor grants or concessional loans are not received from the respective donors in the year ending 31 December 2017, these appropriations may not be issued from the Consolidated Revenue Fund and will lapse.
3	ADJUSTMENT OF APPROPRIATIONS THROUGH THE SECRETARY'S ADVANCE FOR NEW ACTIVITIES AND BETWEEN ACTIVITIES.
(1) The Secretary for Treasury may direct the reallocation of the appropriation entitled "Secretary's Advance" which is appropriated to Division 207 - Treasury and Finance Miscellaneous for any activity under operational and capital expenditure.
(2) Reallocation of the appropriation under "Secretary's Advance" may occur where the following conditions are met:
	(a) there is insufficient or no appropriation to meet expenditure for an activity within the operational and capital budget; and
	(b) the reallocation of appropriation is supported by the Minister responsible for the agency implementing the activity; and
	(c) the reallocation of appropriation is urgent and was unforeseen at the time of making this Act; and
	(d) the reallocation of appropriation is necessary for the delivery of essential services to the people of Papua New Guinea; and
	(e) the total Appropriation reallocated does not exceed the aggregate of the net appropriation for the Secretary's Advance.
(3) Unexpended appropriations for activities within the operational budget may be reallocated to any Government activity, or activities of the National Parliament or Judiciary within the operational budget.
(4) The appropriation for "Secretary's Advance" may only be increased by Parliament.
4	ADJUSTMENT OF APPROPRIATIONS BETWEEN ACTIVITIES.
(1) With the exception of the matters referred to in this section, the Secretary for Treasury may direct the reallocation of any unexpended appropriation for an activity under this Act to appropriations for other activities under this Act.
(2) Reallocation of appropriation may only occur where the following conditions are met:
	(a) there is insufficient or no appropriation to meet expenditure for an activity; and
	(b) the reallocation of appropriation is requested by the Minister responsible for the agency implementing the activity; and
	(c) the reallocation of appropriation is urgent; and the reallocation of appropriation is unavoidable; and
	(d) the reallocation of appropriation was unforeseen at the time of making this Act; and
	(e) the reallocation of appropriation is necessary for the delivery of essential services to the people of Papua New Guinea.
(3) Subject to the exceptions outlined in this section, the total amount of reallocated appropriation authorised under this section shall not exceed a sum K1,04,955,013.29 or ten per cent of the total appropriation of operational expenditure plus the aggregate of the direct financing component of capital expenditures, made under this Act.
(4) An amount appropriated for an activity under Division 207 that is to be transferred either to a trust account or to the agency responsible for conducting the activity for which the amount is appropriated will not count towards the limit identified in this section.
(5) An amount transferred between agencies under Section 5 will not count towards the limit identified in this section.
(6) This section does not apply to appropriations made for the purposes of Division 207 - Treasury and Finance Miscellaneous or to Division 299 - Debt Servicing.
5	ADJUSTMENT OF APPROPRIATIONS FOR ACTIVITIES IDENTIFIED IN DIVISION 207.
(1) The Treasurer may, in exceptional circumstances, direct the reallocation of funding held in Division 207 Treasury and Finance Miscellaneous for other purposes.
(2) Only the Treasurer may direct the reallocation of appropriations for activities identified in Schedule 1 of this Act.
(3) The Treasurer shall publish in the Department of Treasury website a notice identifying the amount of the proposed transfer, the relevant divisions and the purpose of the transfer.
(4) The Treasurer may not delegate the powers provided by this section.
6	ADJUSTMENT OF APPROPRIATIONS FOR DIRECTLY FUNDED CAPITAL PROJECTS.
The Secretary for Treasury may direct the reallocation of any unexpended appropriation for directly financed capital expenditure included in Volume 2, A, B, C and D of the 2015 Budget Publications to other capital expenditure included in Volume 2, A, B, C and D of the 2015 Budget Publications where ‑
	(a) there is insufficient or no appropriation to meet capital expenditure activities; and
	(b) the reallocation is supported by the agency head responsible for the agency implementing the capital expenditure activities; and
	(c) the reallocation of appropriation is urgent and was unforeseen at the time of making this Act and is necessary for the delivery of essential services to the people of Papua New Guinea; and
	(d) the total amount of all reallocations authorised under this section shall not exceed the sum of K242,486,000.00 or ten percent of total directly financed capital expenditures.
7	ADJUSTMENT OF APPROPRIATIONS FOR CAPITAL EXPENDITURE FUNDED BY GRANTS.
The Secretary for Treasury may direct the reallocation of any unexpended appropriation for a capital expenditure activity identified in Volume 2, A, B, C and D of the 2017 Budget Books to other capital expenditure activities identified in that volume of the Budget Publications where ‑
	(a) there is insufficient or no appropriation to meet expenditure for a capital expenditure activity; and
	(b) the transfer is requested by the donor providing the grant; and
	(c) the Secretary for Treasury agrees the need for reallocation of appropriation is urgent and was unforeseen at the time of making this Act and is necessary for the delivery of essential services to the people of Papua New Guinea.
8	ADJUSTMENT OF APPROPRIATIONS FOR CAPITAL EXPENDITURES FUNDED FROM CONCESSIONAL LOANS.
The Secretary for Treasury may direct the reallocation of any unexpended appropriation for a capital expenditure activity funded from a concessional loan to another capital expenditure activity included in Volume 2, A, B, C and D of the 2017 Budget Books and funded by a concessional loan where -
	(a) there is insufficient or no appropriation to meet expenditure for that other capital expenditure activity; and
	(b) the reallocation is supported by the agency head responsible for the agency implementing the capital expenditure activity; and
	(c) the Secretary for Treasury agrees the need for reallocation of appropriation is urgent and was unforeseen at the time of making this Act and is necessary for the delivery of essential services to the people of Papua New Guinea.
9	REALLOCATION OF AMOUNTS FROM DIVISION 299 - DEBT SERVICING.
(1) The Treasurer may authorise the reallocation of any unexpended appropriation for interest, fees or charges held under Division 299 and this reallocation may only be for activities identified in Division 207 where -
	(a) reallocation of appropriation is permitted to only occur after the following conditions are met:
	(i) reallocation of appropriation may only occur to the extent that projections of interest, fees or charges for the 2017 year published in the Mid-Year Economic and Fiscal Outlook Report are lower than the projections of interest, fees or charges for the 2017 year published in Volume 1 of the 2017 Budget Books; and
	(ii) the Treasurer publishes a notice in the Department talent of Treasury website identifying the amount reallocated from Division 299, the circumstances justifying the reallocation and the remaining balance of the Division; and
	(b) the total amount of reallocation of appropriations for interest, fees or charges shall not exceed five percent of the total appropriation for these items or a sum of K65,848,047.00.
(2) The Treasurer may not delegate the authority to reallocate unexpended appropriations held under Division 299.
10	DELEGATION OF POWERS.
The Secretary for Treasury may, by written instrument, delegate the powers provided under Sections 3 and 4 of this Act to a permanently appointed public servant in the Department of Treasury holding the position of Deputy Secretary.
11	TRANSFER OF ACTIVITIES BETWEEN AGENCIES.
Where an activity is transferred from one agency to another, the authority conferred by Section 3 and 4 extends to the reallocation or transfer of the remaining appropriation for that activity to the agency now responsible for the activity.
12	DIRECTIONS TO BE PUBLISHED.
The Secretary for Treasury shall publish a monthly report of all transfers made under this Act on the Department of the Treasury website and the report shall identify the following matters:
	(a) the division number and name; and
	(b) the initial appropriation for the Division; and
	(c) the current appropriation for the Division; and
	(d) warrants released for the Division in the relevant month; and
	(e) total warrants released for the Division for the year to date; and
	(f) the expenditure of the Division in the relevant month; and
	(g) total expenditure of the Division for the year to date; and
	(h) an explanation of changes in the value of current appropriation for the Division.
13	DIRECTIONS TO REALLOCATE APPROPRIATIONS TO BE AVAILABLE TO AUDITOR-GENERAL.
A copy of each direction under Sections 3, 4, 5, 6, 7 and 8 shall be made available to the Auditor-General at the conclusion of each quarter of the year ending 31 December 2017.
14	DIRECTION FOR EXPENDITURE APPROPRIATED TO TRUSTS.
(1) K802,000,000.00 of the amount appropriated in this Act is to be immediately transferred to the Trust Accounts identified for the approved capital expenditures expressed in Schedule 2.
(2) Where a Trust Account specified in Schedule 2 does not exist, a new trust account is to be established by the Minister for Finance under Section 15 of the Public Finances (Management) Act 1995 and the transfer is to take place immediately on the establishment of the Trust Account.
(3) In the event that the amounts expressed in Schedule 2 are not transferred, the appropriation will lapse and the amounts will be returned to the Consolidated Revenue Fund.
(4) These funds cannot be utilised, transferred or reallocated for any other purpose.
SCHEDULE 1.
General Public Service Expenditure for the year ending 31 December 2017.
SUMMARY.
Div Agency	Operational	Capital	Total	
202 Office of Governor-General	3,611,829.00	2,000,000.00	5,611,829.00	
203 Department of Prime Minister and NEC	60,737,037.00	34,000,000.00	94,737,037.00	
204 National Statistical Office	5,592,233.00	4,000,000.00	9,592,233.00	
205 Office of Bougainville Affairs	2,532,127.00	0	2,532,127.00	
206 Department of Finance	20,400,000.00	18,200,000.00	38,600,000.00	
207 Treasury and Finance Miscellaneous	1,491,446,000.00	0	1,491,446,000.00	
208 Department of Treasury	28,920,000.00	122,800,000.00	151,720,000.00	
209 Office of the Registrar for Political Parties	5,693,895.00	0	5,693,895.00	
211 Papua New Customs Service	46,788,900.00	5,000,000.00	51,788,900.00	
212 Information Technology Division	10,074,493.00	0	10,074,493.00	
213 Fire Services	16,123,849.00	2,000,000.00	18,123,849.00	
215 Papua New Guinea Immigration and Citizenship Services	8,219,956.00	0	8,219,956.00	
216 Internal Revenue Commission	65,092,821.00	10,000,000.00	75,092,821.00	
217 Department of Foreign Affairs	43,120,000.00	1,890,000.00	45,010,000.00	
218 Office of the Public Prosecutor	6,948,290.00	0	6,948,290.00	
219 Papua New Guinea Institute of Public Administration	5,566,323.00	0	5,566,323.00	
220 Department of Personnel Management	15,050,631.00	97,740,000.00	112,790,631.00	
221 Public Service Commission	5,495,797.00	0	5,495,797.00	
222 Office of the Public Solicitor	11,234,867.00	0	11,234,867.00	
224 Magisterial Services	37,188,285.00	2,500,000.00	39,688,285.00	
225 Department of Attorney-General	99,666,300.00	60,500,000.00	160,166,300.00	
226 Department of Corrective Institutional Services	124,680,000.00	5,000,000.00	129,680,000.00	
227 Provincial Treasuries	33,210,000.00	0	33,210,000.00	
228 Department of Police	298,893,000.00	10,000,000.00	308,893,000.00	
229 Department of National Planning and Monitoring	12,023,090.00	255,240,000.00	267,263,090.00	
230 Electoral Commission	13,346,017.00	9,820,000.00	23,166,017.00	
231 National Intelligence Organisation	3,775,174.00	0	3,775,174.00	
232 Department of Provincial and Local Government Affairs	12,625,961.00	60,890,000.00	73,515,961.00	
233 Office of Censorship	2,276,926.00	0	2,276,926.00	
234 Department of Defence	218,953,000.00	10,000,000.00	228,953,000.00	
235 Department of Education	780,981,000.00	87,120,000.00	868,101,000.00	
236 Department of Higher Education	61,112,663.00	54,900,000.00	116,012,663.00	
237 Papua New Guinea National Commission for UNESCO	0	0	0	
238 Milne Bay Provincial Health Authority	26,412,620.00	0	26,412,620.00	
239 Western Highlands Provincial Health Authority	31,414,701.00	0	31,414,701.00	
240 Department of Health	251,890,702.00	269,240,000.00	521,130,702.00	
241 Hospital Management Services	400,536,199.00	82,400,000.00	482,936,199.00	
242 Department of Community Development	8,277,927.00	151,300,000.00	159,577,929.00	
243 National Volunteer Services	2,851,513.00	0	2,851,513.00	
244 Eastern Highlands Provincial Health Authority	34,266,160.00	0	34,266,160.00	
245 Conservation and Environment Protection Authority	9,880,555.00	12,100,000.00	21,980,555.00	
246 Office of Urbanisation	1,230,613.00	0	1,230,613.00	
247 Department of Agriculture and Livestock	9,364,035.00	16,800,000.00	26,164,035.00	
248 Southern Highlands Provincial Health Authority	1,000,000.00	0	1,000,000.00	
249 New Ireland Provincial Health Authority	1,000,000.00	0	1,000,000.00	
251 PNG Science and Technology Secretariat	2,694,295.00	500,000.00	3,194,295.00	
352 Department of Lands and Physical Planning	29,636,263.00	0	29,636,263.00	
253 West New Britain Provincial Health Authority	34,583,070.00	0	34,583,070.00	
254 Department of Mineral Policy and Geohazards Management	10,035,737.00	4,300,000.00	14,335,737.00	
255 Department of Petroleum and Energy	15,606,850.00	6,000,000.00	21,606,850.00	
256 Manus Provincial Health Authority	16,847,511.00	0	16,847,511.00	
257 Department of Public Enterprises	5,249,458.00	0	5,249,458.00	
258 Department of Information and Communication	2,789,133.00	12,000,000.00	14,789,133.00	
259 Department of Transport	15,767,723.00	2,980,000.00	18,747,723.00	
260 Enga Provincial Health Authority	27,185,800.00	0	27,185,800.00	
261 Department of Commerce and Industry	10,968,076.00	21,740,000.00	32,708,076.00	
262 Department of Industrial Relations	18,201,710.00	3,000,000.00	21,201,710.00	
263 National Tripartite Consultative Council	557,612.00	0	557,612.00	
264 Department of Works and Implementation	217,680,228.00	492,070,000.00	709,750,228.00	
265 Hela Provincial Health Authority	1,000,000.00	0	1,000,000.00	
266 Sandaun Provincial Health Authority	25,608,840.00	0	25,608,840.00	
267 Department of Implementation and Rural Development	6,934,026.00	0	6,934,026.00	
268 Central Supply and Tenders Board	2,230,000.00	0	2,230,000.00	
269 Office of Tourism Arts and Culture	0	0	0	
299 Treasury and Finance - Public Debt Charges	9,820,598,266.00	0	9,820,598,266.00	
501 Konebada Petroluem Park Authority	0	0	0	
502 Office of the Auditor-General	17,200,970.00	0	17,200,970.00	
503 Ombudsman Commission	17,684,400.00	1,000,000.00	18,684,400.00	
505 National Research Institute	5,094,297.00	0	5,094,297.00	
506. National Training Council	1,643,109.00	35,900,000.00	37,543,109.00	
507 National Economic and Fiscal Commission	2,838,149.00	0	2,838,149.00	
509 Boarder Development Authority	3,065,369.00	4,600,000.00	7,665,369.00	
510 Legal Training Institute	2,457,755.00	0	2,457,755.00	
511 Office of Climate Change and Development	6,654,072.00	4,600,000.00	11,254,072.00	
512 University of Papua New Guinea	49,254,719.00	20,000,000.00	69,254,719.00	
513 University of Technology	40,317,954.00	10,000,000.00	50,317,954.00	
514 University of Goroka	18,574,449.00	1,000,000.00	19,574,449.00	
515 University of Environment and Natural Resources	18,038,876.00	5,000,000.00	23,038,876.00	
516 Papua New Guinea Sports Foundation	7,652,910.00	33,200,000.00	40,852,910.00	
517 National Narcotics Bureau	2,500,753.00	0	2,500,753.00	
518 Papua New Guinea Maritime College	3,932,436.00	4,000,000.00	7,932,436.00	
519 National AIDS Council Secretariat	8,148,930.00	0	8,148,930.00	
520 Institute of Medical Research	9,975,036.00	0	9,975,036.00	
521 National Youth Development Authority	2,805,993.00	0	2,805,993.00	
522 Constitutional and Law Reform Commission	2,934,825.00	1,000,000.00	3,934,825.00	
523 Papua New Guinea Accidents Investigation Commission	5,104,372.00	0	5,104,372.00	
524 Kumul Consolidated Holdings	0	77,500,000.00	77,500,000.00	
525 National Broadcasting Commission	22,531,878.00	0	22,531,878.00	
526 National Maritime Safety Authority	2,404,189.00	9,200,000.00	11,604,189.00	
530 Investment Promotion Authority	2,171,365.00	0	2,171,365.00	
531 Small and Medium Enterprises Corporation	2,622,791.00	2,000,000.00	4,622,791.00	
532 National Institute of Standards and Industrial Technology	3,926,411.00	1,000,000.00	4,926,411.00	
533 Industrial Centres Development Corporation	2,228,715.00	0	2,228,715.00	
535 Mineral Resources Authority	0	7,000,000.00	7,000,000.00	
536 Kokonas Indastry Copration	1,117,551.00	14,000,000.00	15,117,551.00	
537 National Airports Corporation	0	113,800,000.00	113,800,000.00	
538 Papua New Guinea Air Services Limited	0	5,000,000.00	5,000,000.00	
539 National Museum and Art Gallery	6,568,462.00	5,000,000.00	11,568,462.00	
541 National Housing Coporation	120,130.00	7,000,000.00	7,120,130.00	
542 National Cultural Commission	3,481,797.00	0	3,481,797.00	
543 National Development Bank	0	35,000,000.00	35,000,000.00	
545 Rural Airstrip Authority	2,708,124.00	0	2,708,124.00	
546 Papua New Guinea Power Limited	0	89,600,000.00	89,600,000.00	
547 Telikom (PNG) Limited	0	6,500,000.00	6,500,000.00	
549 Office of Coastal Fisheries Development Agency	2,100,079.00	0	2,100,079.00	
550 Cocoa Coconut Institute	4,315,625.00	0	4,315,625.00	
551 Papua New Guinea National Fisheries Authority	0	15,000,000.00	15,000,000.00	
553 Fresh Produce Development Company	4,859,005.00	12,500,000.00	17,359,005.00	
554 Papua New Guinea Coffee Industry Corporation	3,069,587.00	14,190,000.00	17,259,587.00	
57 Papua New Guinea Forest Authority	23,145,962.00	5,110,000.00	28,255,962.00	
558 Tourism Promotion Authority	8,940,994.00	17,900,000.00	26,840,994.00	
562 National Agriculture Research Institute	8,290,000.00	5,000,000.00	13,290,000.00	
563 National Agriculture Quarantine and Inspection Authority	8,240,761.00	5,000,000.00	13,240,761.00	
565 Civil Aviation Safety Authority	10,427,279.00	0	10,427,279.00	
566 Papua New Guinea Cocoa Board	3,889,264.00	13,000,000.00	16,889,264.00	
567 National Road Authority	0	20,000,000.00	20,000,000.00	
568 Livestock Development Corporation	0	0	0	
569 Independent Consumer and Competition Commission	7,557,751.00	0	7,557,751.00	
571 Fly River Provincial Government	91,044,453.00	46,400,000.00	137,444,453.00	
572 Gulf Provincial Government	53,541,125.00	32,500,000.00	86,041,125.00	
573 Central Provincial Government	93,072,431.00	52,390,000.00	145,462,431.00	
574 National Capital District	103,324,000.00	69,520,000.00	172,844,000.00	
575 Milne Bay Provincial Government	98,549,347.00	53,950,000.00	152,499.347.00	
576 Oro Provincial Government	58,268,330.00	31,620,000.00	89,888,330.00	
577 Southern Highlands Provincial Government	112,887,131.00	75,190,000.00	188,677,131.00	
578 Enga Provincial Government	93,195,546.00	67,650,000.00	160,845,546.00	
579 Western Highlands Provincial Government	117,768,126.00	53,040,000.00	170,808,126.00	
580 Simbu Provincial Government	115,422,276.00	73,170,000.00	188,592,276.00	
281 Eastern Highlands Provincial Government	142,778,882.00	95,640,000.00	238,418,882.00	
582 Morobe Provincial Government	167,357,163.00	106,670,000.00	274,027,163.00	
583 Madang Provincial Government	161,147,225.00	84,510,000.00	245,657,225.00	
584 East Sepik Provincial Government	142,802,468.00	79,470,000.00	222,272,468.00	
585 Sandaun Provincial Government	93,904,464.00	58,150,000.00	152,054,464.00	
586 Manus Provincial Government	36,794,569.00	21,270,000.00	58,064,569.00	
587 New Ireland Provincial Government	63,067,277.00	35,880,000.00	98,947,277.00	
588 East New Britain Provincial Government	125,033,443.00	64,260,000.00	189,293,443.00	
589 West New Britain Provincial Government	81,761,527.00	31,110,000.00	112,871,527.00	
590 Bougainville Autonomous Government	127,766,100.00	128,810,000.00	256,576,100.00	
591 Hela Provincial Government	56,558,949.00	98,530,000.00	155,088,949.00	
592 Jiwaka Provincial Government	67,463,202.00	41,840,000.00	109,303,202.00	
				
GRAND TOTAL	17,157,785,215.00	3,930,800,000.00	21,088,585,217.00	

SCHEDULE 2.
Immediate transfer of funds Appropriated in this Act from Divisions identified in the Budget Books to Specified Trust Accounts for the year ending 31 December, 2017.
SUMMARY	KINA	
Infrastructure Development Grant (UBSA)	K120,000,000.00	
Special Intervention Fund (ABG)	K 70,000,000.00	
Restoration and Development Grants (ABG)	K 10,000,000.00	
Tuition Fee Free (TFF)	K602,000,000.00	
Amount to be Transferred	K802,000,000.00.	

I hereby certify that the above is a fair print of the Appropriation (General Public Services Expenditure 2017) Act 2016 which has been made by the National Parliament.
Acting Clerk of the National Parliament
I hereby certify that the Appropriation (General Public Services Expenditure 2017) Act 2016 was made by the National Parliament on 8 November 2016.
Speaker of the National Parliament