by Georgina Maka’a

Governor General Sir David Kapu says Solomon Islands is expected to see a moderate economic recovery in 2026, driven by growth in mining, fisheries, agriculture and business services, alongside major projects such as the Tina Hydro project.

Delivering the Speech from the Throne in Parliament today, Sir David said the Government would pursue fiscal discipline by reducing deficits, rebuilding liquidity buffers and strengthening transparency in public financial management.

He said the Government would also consider introducing a medium-term fiscal framework to manage future mineral revenues.

The Governor General made the remarks during the opening of the fourth meeting of the first session of the 12th Parliament.

On taxation reform, Sir David said the Government’s objective was to establish a system that is fair, simple, broad-based and equitable.

“The Value-Added Tax legislation is expected before the House within the year, followed by reform of the Income Tax Act and reviews of excise and resource rent taxation,” he said.

The Governor General highlighted two key reforms that Cabinet would prioritise.

“First, Cabinet will soon endorse the establishment of a Sovereign Wealth Fund to preserve today’s resource wealth as enduring national wealth.

“Secondly, reforms will commence to re-establish the National Bank of Solomon Islands, restoring a national financial institution and widening access to banking across the islands.”

Sir David also confirmed that a suite of financial sector bills would be prioritised, while amendments to the State-Owned Enterprises Act would be submitted within the year.

He said the Coalition Government’s priorities would be reflected in the 2027 Budget, with ministries required to submit costed work plans to ensure government commitments are delivered “not merely proclaimed.”