The Papua New Guinea Institute of National Affairs says a lift in funding for basic services in the provinces is probably the best feature of the 2009 Budget.
The Treasurer Patrick Pruaitch has unveiled a budget that, at 2.6 billion US dollars, is significantly smaller than last year's due to the dramatic slump in revenues from gold, oil and gas.
He is projecting a fall in revenue of 370 million US dollars.
The Institute's Paul Barker says the Budget shows the extent to which the global meltdown is now affecting Pacific states.
But the government has gone ahead with rural development plans and Mr Barker has welcomed the announcement to provide more funding for services in the provinces, following an Organic Law change earlier this year.
"The Funds for the better off provinces will continue as they are but those provinces which have been worse off like Sandaun, Central Province, Chimbu, Eastern Highlands, they will get a significant increase and these funds are particularly for health, education - these basic services."
Paul Barker
