Deputy Prime Minister and Minister for Finance, Johnny Koanapo has presented a powerful statement on the 2026 National Budget on Thursday 6th 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.