Financing for equity in primary and secondary education

1. Education resources to subnational governments

3. Education resources to students and families

4. Social policies and family support programmes

Introduction

Papua New Guinea is divided into four main regions (Highlands, Islands, Mamose, and Southern), which are further divided into 22 provinces, 89 districts, local level governments, and wards. The three levels of education administration are national (Department of Education), provincial (Provincial Education Boards) and district administration. At the central level, the Department of Education oversees and regulates the education system, with the delivery of education services being the responsibility of provincial and district administrations. Local-level governments and district development authorities are specifically responsible for pre-primary and primary education, while secondary schools are under the jurisdiction of provincial governments.

Teacher salaries, tuition fee subsidies, and education function grants are distributed through provinces to schools, with the decentralised structure of the education system placing most financing and planning responsibilities at the subnational level.

In 2023 and 2024, Papua New Guinea’s education sector budget is principally channelled to provincial governments, with universities and tuition fee support schemes also receiving significant funding. Across both years, allocations to national departments responsible for education, as well as other sectors, are present but form smaller portions of the overall budget.

1. Education resources to subnational governments

Provincial and Local-Level Government Funding

Provinces and local-level governments are funded for key service activities, including education, through fiscal transfers from the national government and provincial own-source revenue. Prior to 2009, funding was provided through a ‘Kina per Head’ system, which resulted in inequitable distribution. Since 2009, intergovernmental fiscal transfers are primarily formula-based, aiming to address disparities between provinces and ensure equitable resource allocation, in line with the 2009 Intergovernmental Relations (Functions and Funding) Act. Provincial disparities mainly reflect fiscal imbalances, including differences in tax revenue and government spending needs, which arise from factors such as land mass, population density, and remoteness.

The National Economic & Fiscal Commission (NEFC), operating under the Ministry of Rural and Economic Development since 2023, determines grants for provincial and local-level governments each year based on a legislated formula and cost estimates.

Three main types of grants are provided to provinces: the staffing grant, development/capital funding, and recurrent funding (function and administration grants), the latter of which includes additional function grants, such as education service delivery grants, for provinces with lower fiscal capacity.

As part of recurrent funding, provinces and local-level governments receive an ‘equalisation amount’, representing a minimum funding level for all provinces, determined annually based on net national revenues. Provinces also receive an ‘individual province share’ on a needs basis. The formulas used are as follows:

1. Fiscal Needs Amount: Estimated recurrent cost of assigned service delivery functions and responsibilities − Assessed revenue = Fiscal needs amount

2. Individual Province Share: Equalisation amount for provinces × (Fiscal needs amount of individual province ÷ Total fiscal needs amount of provinces) = Individual province share

3. Individual Local-Level Government (LLG) Share:

Urban LLGs: Equalisation amount for urban local-level governments × (Fiscal needs amount of individual urban LLG ÷ Total fiscal needs amount of urban LLGs) = Individual urban LLG share

Rural LLGs: The rural LLG share is further divided based on district costs and population. Funding for individual rural LLGs is determined according to assessed fiscal needs.

Allocation to Local-Level Governments

Individual local-level government (LLG) shares are divided into urban LLGs (21%) and rural LLGs (79%). Individual urban LLG shares are calculated as: equalisation amount for urban LLGs × (fiscal needs amount of individual urban LLG ÷ total fiscal needs amount of urban LLGs). Rural LLG shares are further allocated based on district costs and population. For urban LLGs, funding is determined according to their assessed fiscal needs.

Historical Funding System: ‘Kina per Head’

Before 2009, Papua New Guinea used a ‘Kina per Head’ funding system to allocate resources from the central government to provinces for key service activities, including education. This system distributed funds based solely on the population of each province, without adequately accounting for differences in fiscal capacity, land size, population density, or remoteness.

2. Education resources to schools

Government Tuition Fee Subsidies

Since 2012, all schools have received grants to cover 13 years of tuition fees for students in early childhood education centres, primary schools, secondary schools, national schools of excellence, vocational schools, inclusive education resource centres, flexible open and distance education services, and permitted schools, under the Government Tuition Fee Subsidy Programme (GTFS). In 2022, the grants were expanded to cover school project costs as part of the Family Assistance Package, providing additional support to families facing economic hardship. While allocations were originally based on student enrolment numbers, since 2025 the policy has shifted to base allocations on geographical locality. In 2025, the Government Tuition Fee Subsidy (GTFS) program, has been renamed the Government Free Education Policy (GFEP).

The National Education Board has set school fee limits for 2025 using the Unit Cost study conducted in 2024 and the National Economic and Fiscal Commission (NEFC) PNG Access Remote Index (PARI) categories: 1) Highly Accessible (HA); 2) Accessible (A); 3) Moderately Accessible (MA); 4) Remote; 5) Very Remote (VRE); and 6) Extremely Remote (ER). Maximum grants per child in 2025 are determined according to the NEFC model, each school’s enrolment, and total funds available, as outlined in the Ministry of Education’s Ministerial Policy Statement 01/2025.

The grant comprises two components: the school operation and function grant (80%), disbursed directly to schools (with grants for schools in decentralised provinces continuing to be paid through the province), and the commodity grant (20%), which supports the provision of basic teaching and learning materials. Schools may also collect parental contributions for specific school projects, but these fees must be optional and approved by the National or Provincial Education Board.

Flexible, Open and Distance Education Programme

As 87% of Papua New Guinea’s population live in rural and remote areas, including islands and mountainous regions, the government has implemented distance learning programmes since 1957, serving more than 110,000 students in grades 7 to 12. This modality allows students to study at home in an open and flexible environment, following their preferred pace and schedule.

At the secondary level, the main form of distance learning is the Flexible, Open and Distance Education (FODE) programme. FODE targets students who are unable to access mainstream schools or who have dropped out due to geographical, financial, physical, or other constraints. The programme is financed through a combination of government funding and support from the World Bank.

Dernière modification:

mer 11/03/2026 - 07:25