The Bougainville House of Representatives has passed the 2026 ABG Budget, a K844,090,000 (US$198.4 million) financial plan aimed at strengthening Bougainville’s institutional readiness, economic transformation, and service delivery as the region progresses towards political independence.
The Budget was tabled by the ABG Minister for Treasury and Finance, Hon. Albert Punghau, in Parliament this week and was passed unanimously by the House yesterday in its final sitting for the year.
Minister Punghau outlined that the 2026 Budget comprises K520.36 million (US$122.3 million) in National Government grants, K46.74 million (US$11.0 million) in internal revenue, and K276.9 million (US$65.1 million) in re-appropriated development funds.
Of the total K844 million (US$198.4 million) budget, the recurrent component totals K240.98 million (US$56.7 million), representing 28.55 per cent, while the development component totals K603.11 million (US$141.7 million), or 71.45 per cent.
“This structure protects core recurrent services, yet it places the main delivery burden on the development programme, so results in 2026 will be judged by completed projects and visible service improvements rather than approvals on paper,” Minister Punghau said.
Minister Punghau explained that the Budget retains the 2024 structure, which separates funding streams under the two Organic Laws – the Organic Law on Peace-Building in Bougainville 2002 and the Organic Law on Provincial and Local-Level Governments 1995.
“This clarifies which funds sit under ABG control and which funds sit under national administration, and it sets out the conditions, approval processes, and reporting and acquittal requirements for each stream,” he said.
“This strengthens compliance, improves transparency, reduces fiscal risk, and supports clear debate in this Honourable House.”
Minister Punghau said the 2026 ABG Budget is set around three fiscal priorities:
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To protect frontline services and core functions, including health, education, and police services;
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To deliver constituency-led development through equal K1 million (US$235,000) allocations under the Constituency Independence-Readiness Program (CIRP) guidelines endorsed by BEC, with strict controls and verified outputs; and
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To strengthen fiscal self-reliance by expanding internal revenue, tightening expenditure control, and investing in infrastructure and other economic enablers to reduce reliance on delayed grant releases.
Recurrent Budget 2026
The National Government recurrent grants component for 2026 totals K205,364,500 (US$48.3 million), representing 24.33 per cent of total ABG expenditure. The allocations are distributed as follows:
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Health and Education – K112,165,400 (US$26.4 million), inclusive of a new allocation of K2,039,000 (US$479,000) for the Buka General Hospital Health Function Grant
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Governance and Administration – K62,784,000 (US$14.7 million)
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Law and Justice – K11,292,600 (US$2.7 million)
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Legislative Government – K10,637,800 (US$2.5 million)
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Judicial Government – K2,629,700 (US$618,000)
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Economic – K3,720,000 (US$873,000)
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Social – K1,190,000 (US$280,000)
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Infrastructure – K945,000 (US$222,000)
“These grants keep government operating by funding salaries, essential operating costs, and routine service delivery, and they also sustain the Legislature and the Judiciary through direct recurrent appropriations,” Minister Punghau clarified.
Development Budget 2026
The total development budget for 2026 totals K603.11 million (US$141.7 million) and includes Restoration Development Grant (RDG) arrears, RDG annual allocations, the Public Investment Program (PIP), and donor funding.
An allocation of K100 million (US$23.5 million) has been set aside for RDG arrears, directed primarily towards capital recovery and productivity through infrastructure development, economic programmes, and government and institutional strengthening.
Sectoral allocations under this component include:
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Legislature – K1,600,000 (US$376,000)
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Government, Public Service and Independence – K26,850,000 (US$6.3 million)
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Law and Justice – K3,700,000 (US$870,000)
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Health and Education – K10,800,000 (US$2.5 million)
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Research, Science, Technology and Innovation – K1,500,000 (US$353,000)
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Infrastructure – K34,250,000 (US$8.0 million)
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Economic – K18,600,000 (US$4.4 million)
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Social – K2,700,000 (US$635,000)
Under the RDG annual appropriation of K50 million (US$11.8 million), funding is distributed on a regional basis to support balanced development across Bougainville.
“This allocation is distributed across Bougainville to support balanced regional development, with the Northern Region receiving K15.4 million (US$3.6 million); the Southern Region receiving K15 million (US$3.5 million); the Central Region receiving K12 million (US$2.8 million); districts receiving K4.1 million (US$964,000); Nissan and Atolls receiving K2 million (US$470,000); and headquarters receiving K1.5 million (US$353,000) to support coordination and delivery across the regions,” Minister Punghau explained.
The passage of the 2026 ABG Budget concluded the Bougainville House of Representatives’ sitting for 2025 and sets the fiscal framework for delivery, accountability, and development priorities in the year ahead.
