The Parliamentary Opposition has backed Finance and Treasury Minister Gordon Darcy Lilo for taking a “realistic approach” to Solomon Islands’ financial position.
It said Lilo’s focus on assessing the country’s available fiscal space, increasing domestic revenue and managing public finances responsibly was necessary amid growing demands on the national budget.
Lilo highlighted these challenges during his recent presentation of the 2026 Supplementary Appropriation Bill.
He warned of the pressure placed on the national budget when government spending increases without corresponding growth in revenue or a clear financing strategy.
In a statement, the Opposition said this was a difficult responsibility, particularly as the Government pursues major policy commitments and new programmes.
“Minister Lilo deserves credit for putting fiscal reality at the centre of the discussion,” the Opposition statement said.
“A Finance Minister must look at what the country can actually afford before Government makes commitments that create additional financial obligations,” it added.
“Fiscal discipline must apply across Government.”
It pointed to increased government spending, additional political appointments and major policy commitments, including fee-free education, infrastructure and agriculture programmes.
The Opposition said all such commitments have financial implications and must be assessed against the country’s available resources.
It also warned that increasing government revenue should not automatically lead to increased spending.
Government must consider whether new spending can be sustained over the long term, it said.
The Opposition said this was particularly important for the proposed fee-free education policy.
It called on the Government to clearly state the policy’s full cost and explain how it will be financed alongside other commitments.
“Good policy must be matched by good financial planning.”
It said responsible financial management also requires the Finance Minister to have sufficient space to assess the country’s finances and advise the Government on what is affordable and sustainable.
“If we genuinely want responsible government, fiscal discipline cannot rest with the Finance Minister alone.
“It must be respected and applied across the whole of Government.”
The Opposition said it welcomed Lilo’s focus on fiscal responsibility.
It said it would continue supporting efforts to strengthen Solomon Islands’ financial position while scrutinising government spending and major policy commitments.
The Opposition said Solomon Islanders deserved a Government that made promises based not only on what people wanted to hear, but on what the country could realistically afford and sustain.
It also urged the Finance Minister to control government expenditure while building the country’s fiscal space.
