Papua New Guinea is a federal constitutional monarchy with three spheres of government: central, provincial and local. Local government is enshrined in the national constitution and whilst the 89 districts are administrative only, the 20 provinces and the 325 local-level governments (LLGs) are both political and administrative. The main governing legislation is the Organic Law on Provincial Governments and Local-level Governments 1995 and the Local-level Governments Administration Act 1997. The Minister of Provincial and Local Government Affairs has statutory responsibility over all matters of local government. There are 40 urban LLGs and 275 rural LLGs; however there is very little difference between the two types. Local authorities may levy a variety of local taxes and charges which account for the vast majority of revenue. There are government transfers to cover staff salaries as well as for specific development projects. Local authorities are responsible for water supply and have joint responsibility with provinces for roads, waste disposal, health and environmental protection, economic promotion and tourism.
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