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State government plays a critical role in the service delivery mechanism in any given country.

The government of Papua New Guinea (PNG), despite the uninterrupted economic growth over the past years has failed to improve the service delivery mechanism in the country.

Analysis by treasury department reveals that the growth in the economy is not translating sufficiently into optimum fiscal and revenue yields.

In a statement released to the public, the tax review committee notes that government revenue is critical for service funding.

“Government revenue is critical to funding essential services and infrastructure for Papua New Guineans, to share the benefits of prosperity across families, communities and regions and to lay the foundation for future growth” the statement says

Efficient funding of service delivery mechanisms in the country is anticipated to provide access to markets and other income earning opportunities, lowering the pressure on the high cost of living in PNG.