The New Ireland Provincial Government (NIPG) in Papua New Guinea has unveiled a record revised budget of K499.57 million, placing infrastructure investment, economic diversification and greater provincial self-reliance at the centre of its development agenda.
Presenting the revised budget to the New Ireland Assembly on 22 July, Provincial Governor Byron Chan described the financial plan, themed New Ireland Destiny, as a major step towards strengthening the province's economy, improving essential services and advancing its autonomy aspirations. The announcement was publicly released on 23 July 2026.
The revised budget is approximately K113.5 million higher than the original K386 million budget passed earlier this year under then Acting Governor Walter David Schnaubelt. The increase is largely attributed to an additional K105 million in National Government development grants, stronger internally generated revenue, higher global gold prices and an increase in mining royalty payments from 2% to 3% from the Lihir and Simberi gold mines.
Infrastructure dominates the revised expenditure programme, with K268.3 million allocated—about 62% of the development budget. The investment reflects the provincial government's strategy of using transport and public infrastructure to support long-term economic growth and attract private investment.
Major projects include K20 million for the continuation of the 36-kilometre Lanzarote Highway, K37 million to seal roads throughout Kavieng, and significant funding for ring road developments on Anir Island, New Hanover and Mussau Island. The government also announced that K50 million in road and bridge construction contracts has already been awarded, allowing implementation to begin immediately.
Economic development will receive K95.3 million, more than double previous funding levels, to support small and medium-sized enterprise infrastructure, market development, downstream processing and agricultural expansion aimed at broadening the province's economic base.
Chan said the provincial government has secured several strategic Memorandums of Agreement with private investors and national agencies to support new industries. These include plans for a balsa processing factory in Namatanai, a fish cannery in Kavieng, local rice harvesting initiatives and a K10 million climate-resilient agriculture programme backed by the Department of Agriculture and Livestock.
The revised budget also increases investment in health and education. The health sector will receive K47.8 million to strengthen free primary healthcare, redevelop hospital facilities and improve emergency services, while K35.9 million has been allocated to education and social services to support subsidised education, teacher and nursing colleges, and planning for higher education expansion.
Key commitments include K10 million for upgrades to Kavieng Hospital, K10 million for teacher and nursing colleges, and an initial K500,000 to establish a technical committee to progress the proposed New Ireland University.
To strengthen grassroots service delivery, K27.8 million has been allocated to district and Local Level Government support. The funding will provide direct grants, improve administrative infrastructure and support preparations for the 2027 national elections.
Community development will receive K26.9 million for youth and sports programmes, women's empowerment initiatives, and pension support for older people and people living with disabilities. Law and order has been allocated K8 million to strengthen police reservists, community justice initiatives and enforcement of the Vagrancy Act. A further K5.5 million will support New Ireland's autonomy agenda and efforts towards greater political self-reliance.
Chan said the revised budget also maintains legacy programmes established under the late Grand Chief Sir Julius Chan, including funding for elderly and disability pensions, the Roof Overhead clean water initiative and the expansion of solar lighting across the province's ten Local Level Governments.
He called on members of the Assembly to work together to deliver the province's development agenda.
"Today I stand here to ask our leaders in this Assembly to unite and work together to implement this budget for the good of our children and their children," Chan said while seeking the Assembly's support for the revised Appropriation Bill.
