The Legislative Assembly has passed the Government’s 2026/27 Budget, approving expenditure of TOP$949.4 million after weeks of parliamentary scrutiny and debate.
The budget, passed yesterday, includes TOP$735.2 million in cash spending and TOP$214.2 million in in-kind support from development partners. A projected budget deficit of TOP$38.1 million will be financed through the issuance of TOP$35 million in government bonds and TOP$3.1 million drawn from cash reserves, according to Parliament.
Prime Minister and Acting Minister for Finance, Lord Fakafanua, first tabled the budget on 18 May before it was referred to the Standing Committee on Finance and Public Accounts for review. The committee later submitted recommendations, after which the estimates were examined in detail by the Whole House Committee covering all 29 government votes.
Parliament then resumed debate, completed the second and third readings of the Appropriation Bill, and formally approved the budget.
The House also endorsed the Government Financial Statements for the year ended 30 June 2025, approved a resolution authorising a government loan exceeding TOP$15 million, and adopted the Auditor General’s Draft Annual Plan for 2026/27.
The budget follows extensive discussion in Parliament, where members examined spending priorities and the Government’s plans to manage the forecast deficit. Recent debates included questions over reliance on bond financing and donor-supported funding.
The new budget is slightly lower than the record $992.8 million budget approved for 2025/26, which also relied heavily on donor contributions and included a smaller projected deficit.
Parliament has adjourned until next Monday.
