𝘣𝘺 𝘌𝘥𝘯𝘢𝘭 𝘗𝘢𝘭𝘮𝘦𝘳
The Public Accounts Committee (PAC) has begun its inquiry into the 2026 Appropriation Bill 2025, and national budget estimates, kicking off a series of hearings aimed at ensuring fiscal responsibility and government transparency.
In his opening remarks, the Committee chairman and Member of Parliament for Central Honiara Gordon Darcy Lilo underscored that the budget remains one of the most powerful tools of government, shaping the country’s economic direction and directly affecting the lives of ordinary Solomon Islanders.
“Our objective is not to be overly critical, but to make sure the credibility and integrity of the budget are properly examined and accurately reported to Parliament. A sound budget is the cornerstone of responsible fiscal management, and it is our duty to uphold that principle,” he stated.
The inquiry will focus on key economic assumptions in the budget, including growth forecasts, revenue projections, and spending priorities.
Over the coming days, accounting officers from various ministries and government agencies will appear before the Committee to give evidence and answer questions about their respective budget submissions.
The Central Bank of Solomon Islands (CBSI) was among the first institutions to face the Committee, presenting an update on how the economy has performed so far this year and what lies ahead for 2026.
Governor of CBSI Dr Luke Forau told the Committee that the global economy had been expected to slow earlier this year after the Trump administration introduced new tariffs.
The move, he said, initially raised concerns about global trade, but in the short term, it prompted some countries to speed up trading activity to avoid the tariffs — giving the world economy a temporary lift.
Domestically, the Bank reported mixed results. The production and manufacturing index fell by 2 percent up to September, driven mainly by lower output of logs, fish, and cocoa — the country’s key export commodities.
However, there was some good news on the labour front. Employment conditions improved slightly, mostly due to activity in the mining sector, with SINPF contribution data used as a proxy for labour trends.
The governor, however, stressed the need for stronger investment in the National Statistics Office to provide more reliable and comprehensive employment data.
“Employment statistics are critical for understanding where economic demand lies,” he said. “The National Statistics Office needs adequate resources to carry out this important work.”
The governor reported that Inflation stood at 5.7 percent as of September — slightly above the Central Bank’s preferred range of 2 to 5 percent. “CBSI expects inflation to ease back within the target range by the end of the year.”
Government finances, however, have come under pressure. The fiscal deficit widened to $43 million by September, compared to $28 million during the same period last year.
Total public debt rose by 16 percent from December 2024, now equivalent to 25 percent of GDP, which CBSI says remains below the sustainable threshold of 35 percent.
Remittances continued to provide a vital cushion for many households. By September, $289 million had been sent home by Solomon Islanders working abroad — mainly through the Pacific Australia Labour Mobility (PALM) scheme and similar programs in New Zealand and Australia.
CBSI also reported that money supply increased over the period, boosted largely by inflows from development partners and donors.
The PAC will continue hearings over the next several days, calling officials from key ministries and agencies to explain how budget allocations align with national priorities and economic realities.
The Committee’s findings and recommendations will be presented to Parliament ahead of debates on the 2026 Appropriation Bill.