The Western Provincial Government (WPG) has presented a revised total budget of $40, 224, 244 for the fiscal year 2025/2026, reflecting an upward adjustment from the previous allocation of $36,733,592.
Delivering the budget speech before the Western Provincial Assembly in Gizo, the Provincial Finance Minister Hon. Ronnie Ghemu said the revised figures demonstrate the province’s “unwavering commitment to fiscal responsibility, inclusive development, and community empowerment.”
Minister Ghemu clarified that the revised budget is not a new one but an update to the original 2025/2026 fiscal plan.
Mr. Ghemu said adjustments were made following new revenue projections, confirmed funding inflows, and compliance recommendations from the Ministry of Provincial Government and Institutional Strengthening (MPGIS).
He explained that late guidance from MPGIS prompted necessary amendments, particularly to the economic sector component under the IEDCR, which was initially under-budgeted below the required 42% threshold.
“Both the MPGIS and the Ministry of Finance and Treasury (MOFT) reportedly stressed the importance of prioritizing the Mile Six Farm Project, describing it as one of Western Province’s most productive and high-potential ventures.
“To comply with national directives, the province reallocated $668,683.60 across divisions and added a supplementation of $3,495,291.05 to strengthen divisional operations and capital expenditure,” the Finance Minister Ghemu added.
The revised fiscal framework now projects:
Recurrent Budget: $2,431,260.48
Capital Budget: $1,064,030.57
Total Budget: $40,224,243
The increase was attributed to anticipated inflows from outstanding business licence dues, property rates, and pending SIG grants. The province also expects support from the Ministries of Agriculture and Livestock, and Women, Youth and Children.
The Minister said the province is stepping up revenue enforcement, with a Legal Officer tasked to recover long-outstanding dues, particularly in business licensing and property rates.
He emphasized that uncollected revenues were deliberately excluded from the revised figures to maintain realistic fiscal targets and avoid overestimations.
Key allocations under the recurrent budget include:
Office of the Premier – $426,000
Provincial Assembly – $191,615
Works, Transport & Communication – $208,000
Agriculture Division – $280,556
Ward Development Committees (Wards 15 & 17) – $262,403.58
Under capital expenditure, allocations include:
Works, Transport & Communication (PCDF SIG) – $408,342.21
Health & Medical Services (PCDF SIG) – $184,412.61
Agriculture (PCDF IEDCR) – $377,040
To comply with the 42% economic sector threshold, the government reallocated $377,040 from the Nusa Banga Water Supply Project to the Mile Six Farm Project, increasing its total funding to $677,040.
The Minister said this shift aims to reinforce investment in “high-impact, revenue-generating projects” that will strengthen economic resilience and sustainability for the province.
“This revised budget is not a complete overhaul,” Minister Ghemu further added.
“It fine-tunes our priorities, strengthens fiscal discipline, and positions Western Province for responsible governance and inclusive growth he adds.
The revised budget was formally commended to the Western Provincial Assembly for endorsement
By ULUTAH GINA
Solomon Star, Gizo
