2018 Budget Speech Overview

On December 5, 2017, the Honourable Minister of Finance and Economic Development presented the 2018 Budget Speech to the Maneaba ni Maungatabu (Parliament). The speech outlined the government's fiscal strategies and priorities for the year, emphasizing prudent financial management and sustainable development.

Key Highlights:

• Fiscal Outlook: The 2018 budget projected a modest recurrent surplus, despite a significant increase in the public wage bill amounting to 6% of GDP. This was offset by reductions in other recurrent expenditures.
• Revenue Performance: Fishing license revenues exceeded projections by 16% of GDP, contributing to improved fiscal performance.
• Supplementary Expenditures: Additional spending amounting to 9% of GDP was authorized under supplementary budgets, primarily to cover the initial costs associated with the acquisition of aircraft for Air Kiribati Limited's plans to establish independent international transportation services.
• Economic Growth: Real GDP growth was estimated at 2.25% for 2018, reflecting a moderation from previous years as fishing volumes normalized.
• Policy Priorities: The government emphasized the importance of reinforcing the fiscal framework, creating an environment conducive to private sector development, and enhancing governance to ensure inclusive and sustainable growth.

For a detailed breakdown of allocations and expenditures, please refer to the full 2018 Budget Speech document available below