Deputy Prime Minister and Minister for Finance, Johnny Koanapo has presented a powerful statement on the 2026 National Budget on Thursday 6^th of November, outlining a comprehensive plan to drive economic growth, improve public services, and enhance the well-being of all Ni-Vanuatu.

At its core the budget aims to lay the foundation for a prosperous and inclusive future, as the country approaches its 50th independence anniversary in less than five years from today.

Key Highlights

The 2026 Budget focuses on several key areas, including:

·         Infrastructure Development: Finishing critical road packages and municipal works, progressing the Efate ring road and Santo East Coast Road, and upgrading airports and ports.

·         Education: Honouring teachers' entitlements, supporting the National University of Vanuatu, and investing in education infrastructure.

·         Health: Transforming the health sector through infrastructure upgrades, equipment, and recruitment of doctors and specialists.

·         Agriculture: Supporting farmers, improving livestock and animal health, and promoting value-added production and exports.

·         Climate Change and Disaster Resilience: Strengthening Vanuatu's climate stance, implementing the National Loss and Damage Policy, and advancing the National Adaptation Plan.

Economic Outlook

The global economy remains under stress, but Vanuatu's medium-term economic outlook is positive says the Deputy Prime Minister, with real GDP growth projected to accelerate to 3.9% in 2026 and 4.0% from 2027 to 2030. The services sector is recovering, and the government has made significant progress in stabilizing the budget.

Revenue and Expenditure

The 2026 Budget estimates total revenue of VT 46.8 billion, with a focus on strengthening revenue collection and compliance. Expenditure is projected to be VT 64.1 billion, with a mix of domestic borrowing and support from development partners.

Stimulus Package

The government has launched a stimulus package to support recovery and economic resilience, including:

·         Demolition of damaged buildings: VT 312 million allocated for demolition and reconstruction.

·         Wage subsidy program: VT 187 million disbursed to support jobs and ease pressure on employers.

·         Small Business Grants: VT 62 million paid to support over 300 vendors.

Debt Management

The government has launched the Fourth National Debt Management Strategy (2025-2028), aiming to strengthen economic resilience and safeguard financial stability. The strategy provides a clear framework to manage public debt sustainably.

Sectoral Allocations

The budget allocates significant funds to various sectors, including:

·         Infrastructure: VT 3.6 billion for infrastructure development.

·         Health: VT 515.2 million for health infrastructure and services.

·         Education: VT 1.2 billion for education infrastructure and teachers' entitlements.

·         Agriculture: VT 200 million for agricultural development.

The 2026 National Budget is a comprehensive plan to drive economic growth, improve public services, and enhance the well-being of all Ni-Vanuatu. With a focus on building a stronger, smarter, and more united nation, the government is committed to delivering on its promises and preparing Vanuatu for the next 50 years.

The entire budget speech of the Deputy Prime Minister and Finance Minister is available online.

View Budget Speech 2026 - Ministry of Finance

Port Vila, Vanuatu – 5^th November, 2025 – The Government of Vanuatu is set to transform the condition of roads in the Seaside and Nambatu areas, thanks to the approval of a significant contract by the Council of Ministers (COM). The contract, valued at over Vt600 million, has been awarded to Downer EDI Works Vanuatu Ltd., as recommended by the Central Tender Board on October 30th, 2025.

"This is a momentous day for the residents and businesses of Seaside and Nambatu," said Prime Minister Jotham Napat. "The rehabilitation of these roads is a critical step towards improving the lives of our citizens and enhancing the economic prospects of our communities. We are grateful to the Australian Government for their support through the Vanuatu-Australia Infrastructure for Development (VAI4D) Program, which is making this project possible."

The scope of works under the contract includes:

·         Construction of 138m steel reinforced concrete pavement at the Mangoes Resort

·         Pothole repair and spot repair of Seaside and Nambatu Area Roads

·         Rehabilitation of 1,160m Roads as shown on the map (light blue lines)

·         Resealing of 5,670m Roads as shown on the map

Downer EDI Vanuatu Ltd., a reputable road construction company, will undertake the rehabilitation works, which are expected to be completed within 9 months (or 270 days).

The Government of Vanuatu looks forward to the successful completion of this project, which will significantly improve the condition of the roads and enhance the quality of life for residents and businesses in the area.

"This contract represents just Package 1 of our road rehabilitation efforts, with further packages planned to upgrade other main road networks," added Prime Minister Napat. "We are committed to transforming our infrastructure, and we expect to see significant improvements to the Port Vila CBD in 2026, as part of our ongoing efforts to enhance the city's infrastructure and services."

The Nambatri Roads will be done once Public Works have done Freshwota and Erakor.

For more information, please contact the Prime Minister's Office or the Ministry of Infrastructure and Public Utilities.

PORT VILA 23^rd October 2025 – Prime Minister Hon. Jotham Napat today issued a strong defence of Vanuatu's constitutional amendments 17A and 17B, calling opposition challenges to the democratically-approved reforms "a calculated attempt to return to the chaos of revolving-door governments that have plagued our nation for decades."

The amendments, which passed by nearly 60% in Vanuatu's first-ever national referendum on 29 May 2024, were designed to end chronic political instability that saw the country cycle through four different prime ministers from four different parties in 2022-2023 alone, and 20 changes of prime minister between 1991 and 2017—more than any other Pacific island nation.

"We find it deeply ironic that those now challenging this process claim to be preserving democracy," Prime Minister Napat stated. "The real question Ni-Vanuatu must ask is: why does the opposition suddenly object to reforms they had the opportunity to debate and which the people overwhelmingly approved? The answer is simple—they wish to preserve their ability to destabilise elected governments through constant motions of no confidence rather than respect the will of voters."

The constitutional reform process began in 2008 with the Constitutional Review Committee's initial recommendations. After years of consultation and failed attempts to build consensus, Parliament achieved an unprecedented unanimous vote of 47-0 in December 2023, transcending all party divisions.

The Government invested VT350 million in a comprehensive three-month public awareness campaign that reached 98% of the population across all six provinces and overseas communities. Over 75 international and domestic observers monitored the referendum process, including delegations from the Pacific Islands Forum, Melanesian Spearhead Group, and diplomatic missions from Australia, New Zealand, France, and the United Kingdom.

"Every constitutional requirement was meticulously followed," PM Napat emphasised. "The Supreme Court independently reviewed and validated our compliance with Articles 85 and 86 of the Constitution just two days before the referendum. The people spoke clearly—59% for Article 17A and 58% for Article 17B."

The Prime Minister noted that grassroots support preceded government action, with citizens delivering a petition signed by over 1,800 people to Parliament in November 2023 demanding political stability reforms. "Our people were crying out for change. Political instability has disrupted development projects, discouraged foreign investment, prevented passage of budgets, and led to the collapse of Air Vanuatu and slow economic recovery. Our people deserve better."

"The time for political games is over," PM Napat said. "The opposition must show true leadership by respecting this democratic mandate and focusing on the work the people elected them to do. We will not allow Vanuatu to return to the chaos that has held our nation back for over 30 years. The people have spoken, and this Government will honour their decision."

The Prime Minister reaffirmed the Government's commitment to implementing the amendments fully whilst continuing broader political reforms including strengthening political party governance and democratic accountability.

The Office of the Prime Minister wishes to inform the public, particularly members of the Vanuatu Teachers Union (VTU), that the Government of Vanuatu has commenced the implementation of the recent Council of Ministers (COM) decision to settle outstanding teachers’ allowances.

The Ministry of Education and Training (MoET) has processed the first batch of payments, amounting to VT 111,544,156, marking a significant step in the Government’s commitment to address long-standing issues affecting teachers and ensuring fairness across the education sector.

The breakdown of the current payments is as follows:

·         Primary Teaching Years 7 & 8 Allowances: VT 19,088,534

·         Junior Secondary and Senior Secondary Teaching Allowances: VT 66,754,035

·         Associate Diploma Allowances: VT 25,701,587

Further verification work is ongoing for Principals and Deputy Principals’ allowances, which require additional checks. These payments will be processed and included in the next payroll run by Friday.

Next week, the CBA Taskforce will verify the ambiguous claims in consultation with Provincial Education Officers to ensure accuracy, fairness, and transparency.

The Government reiterates its strong commitment to settling all legitimate claims under this payroll exercise. As the guardian of the people’s welfare, the Government remains steadfast in ensuring justice, accountability, and recognition for all public servants—especially teachers, who play a vital role in shaping the nation's future.

 The Vanuatu Teachers’ Union, through its Secretary, acknowledged the Government’s decisive action and commitment, stating:

“Vanuatu Teachers' Union wishes to acknowledge the current Government for the great effort put into resolving the long-standing teachers’ issue. The Government has paid the back pay of salaries for teachers who went on strike, and there are a few who are still waiting for their back pay — we hope the Government will recover that shortly. Furthermore, the Union acknowledges the Government for the first part payment of VT 111 million for the shortfall of calculation for primary teachers teaching Years 7 and 8, and for junior teachers teaching senior classes. The remaining VT 164 million, approved by the Council of Ministers, will be paid next payday. On behalf of all VTU members around the country, we thank the collective efforts of all parties involved and trust that and once the verification process is completed, we can proceed to the Collective Bargaining Agreement discussions.”

 The Government welcomes the Union’s cooperation and reaffirms its readiness to improve working relations with the VTU and all stakeholders to strengthen the education sector and ensure the welfare of teachers across the country.