The Government expects to receive about $55 million or AUD $30 million from Australia and NZD $8.5 million from New Zealand in budget support in the next few weeks.
This has been confirmed by Minister for Finance Esrom Immanuel as the Government commences preparations for the 2026–2027 National Budget which will be focused on supporting the people during the fuel crisis, ensuring economic stability and security, continuation of critical public services, focus on fiscal prudence and reforms to support business development and economic growth.
He says as they announce the new budget, they will announce more support measures to protect the people, businesses and the economy.
The Minister says they are exploring options on reducing the taxes on fuel, providing relief to businesses and workers with the reduction in FNPF rates, working capital support and concessional financing for businesses through the RBF and other financial institutions, relaxed tax payment arrangements to provide cashflow relief for taxpayers, tax incentives for businesses that rely heavily on fuel, financial package to support the tourism industry and income support measures.
He says the Government has already started with a range of cost cutting measures, including a 20 percent pay reduction for all Parliamentarians and Ministers.
Immanuel also says that there is currently a freeze on new hiring within the civil service.
He adds the use of Government vehicles is being strictly controlled, while travel, workshops, conferences and other operational expenditure is being reduced.
He says the Ministry of Finance is engaging with multilateral development institutions, including the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank to secure additional financing for the next financial year.
Immanuel says in addition, the Government is working closely with domestic financiers, including FNPF and other institutional investors, to mobilise further financing support for the upcoming budget.
The 2026-2027 National Budget will be announced on 26th June.
