Samoa’s Parliament has passed the Government’s 2026/2027 Appropriation Bill, approving the first national budget under Prime Minister Hon. La’aulialemalietoa Leuatea Polataivao Fosi Schmidt after three weeks of debate and public consultations.
The $1.5 billion tala Budget provides for total expenditure of $1.501 billion against expected receipts of $1.285 billion.
This results in a projected cash deficit of $215.9 million, equivalent to 3.1 per cent of GDP.
Finance Minister Hon. Mulipola Anarosa Ale Molio’o said the deficit will be financed through $41.5 million in concessional (soft-term) loans, $60 million in General Budget Support from development partners, and movements in government cash balances.
Government will also look to strengthen domestic revenue collection without increasing VAGST or income tax, while maintaining fiscal spending of $102 million across the nation’s 51 constituencies.
The Budget is the first to implement the Government’s Pathway for the Development of Samoa 2026–2031 (PDS2) under the theme “AIGA – Accelerating Inclusive Growth and Access.”
Parliamentary debate focused heavily on health, education, infrastructure, district development and social protection.
Among the major priorities are
- $102 million for District Development Programme projects.
- $20 million for the new Child Wellbeing Benefit, providing $100 per month for children aged 0–35 months and a $200 baby bonus.
- An increase in the monthly pension for those aged 70 and over from $300 to $500.
- $21.5 million for medicines and medical consumables, up from $14 million.
- $10.9 million for non-government organisations supporting vulnerable communities.
- $6 million for sports development and athlete programmes.
Another major part of the Budget is the Government’s response to the fuel supply crisis. A total of $100 million tālā has been allocated to support the Electric Power Corporation and, to a lesser extent, the Samoa Water Authority.
The allocation includes standby liquidity support if global fuel conditions worsen.
Ministers repeatedly pointed to the PDS as the roadmap guiding expenditure.
They emphasised improving healthcare, lifting educational outcomes which have reached dire student results, creating employment opportunities, strengthening village and district development, supporting vulnerable families, and building resilience against climate change.
Opposition members questioned the size of the deficit and plans to fund it, and whether revenue targets can be achieved.
Health emerged as one of the budget’s highest priorities. The Budget promises to improve hospital services, recruit and retain health professionals, strengthen primary healthcare and expand access to medicines and essential medical equipment.
Several MPs from both sides of the floor highlighted the importance of ensuring that improved services reach rural communities as well as Savaii, Manono and Apolima.
Education also featured prominently during debate. Parliament heard that additional investment would support schools, teacher development, learning resources and tertiary education.
MPs challenged the quality of education and the need to prepare young Samoans for future employment opportunities.
In her closing remarks, the Finance Minister said the Budget represents more than government spending, describing it as an investment in Samoa’s people and the nation’s future.
“Every tala allocated is intended to advance the Government’s long-term vision of building a more resilient, prosperous and inclusive Samoa.”
With Parliament’s approval now secured, attention turns to implementation, as Ministries and SOE’s begin to deliver essential services across Samoa.
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