Prime Minister Laaulialemalietoa Leuatea Schmidt has announced that members of the public will have the opportunity to comment on the government’s proposed $1.5 billion budget after the Independence Day celebrations. 

The consultations are expected to begin on Friday, 5 June, in Upolu, followed by meetings in Savai‘i on 8 and 9 June. The Prime Minister did not announce the venues. 

Minister of Finance Mulipola Anarosa Ale-Molio‘o, who presented the Budget Address in parliament on Tuesday, said the budget was also an invitation to Samoans overseas to remain connected to Samoa's development. “For Samoa’s diaspora communities, this budget is an invitation to remain connected, to invest in shared progress,” she said.

Mulipola became emotional during parts of her presentation as she outlined the government’s financial plan for the 2026-2027 financial year. The theme of this year’s budget is “AIGA - Accelerating Inclusive Growth and Access.”

The proposed $1.5 billion budget for 2026-2027 is a sharp increase from the $1.24 billion spending plan for 2025-2026, driven by new spending on fuel security, social protection, health and district development. Total expenditure is listed at $1,500,580,288, compared with $1,241,535,754 in the previous budget.

Despite the increase, the government projects the cash deficit will narrow to 3.1 per cent of gross domestic product, compared with 3.5 per cent in 2025-2026. The projected deficit for 2026-2027 is $215,869,354.

The largest new allocation is a $100 million fuel supply crisis response, intended to support the Electric Power Corporation (EPC) and, to a lesser extent, the Samoa Water Authority (SWA). According to the budget, the funding includes a standby liquidity facility to protect essential services if global fuel prices and supply conditions worsen.

The budget also proposes a three per cent increase in tobacco excise duties from 1 January 2027. According to the budget address, the current VAGST and income tax rates remain unchanged, with a focus on improved tax compliance and enforcement.

The Ministry of Finance records the largest increase among government agencies, rising from $132.8 million in 2025-2026 to $276.3 million in 2026-2027. Much of that increase reflects national programmes administered through the ministry, including the fuel response, pensions, the new child wellbeing benefit and concessional lending schemes.

Health spending rises from $170.7 million to $183.4 million, with funding for medical consumables increasing from $14 million to $21.5 million. The Overseas Treatment Scheme (OVT) is funded at $12 million; earlier, the Prime Minister announced an additional $2 million that was approved by cabinet. 

The budget also reflects changes to the government's structure. The former Ministry of Agriculture and Fisheries (MAF) has been split into the Ministry of Agriculture, allocated $20.7 million, and the new Ministry of Fisheries and Marine Resources, allocated $8.7 million. Combined, the two agencies receive about $29.4 million, compared with $23 million in 2025-2026.

The District Development Programme has been allocated $102 million, up from $91.8 million in the previous budget. According to the budget address, the government has pledged $10 million per constituency over five years. 

The 2026-2027 budget also includes $215.9 million in development expenditure, up from $134 million in 2025-2026.

Some ministries record declines. The Ministry of Works, Transport and Infrastructure (MWTI) falls from $58.2 million to $37 million, while the Ministry of Natural Resources and Environment (MNRE) drops from $37.3 million to $22.5 million. The reduction partly reflects one-off allocations in the previous budget, including $10 million in Manawanui-related compensation and $3.4 million in energy crisis compensation for affected businesses and households. The Samoa Observer has reported that people affected by the Manawanui sinking and the 2025 power outages have yet to receive compensation.

The Finance and Expenditure Committee has been given 14 days to review the budget before reporting back to Parliament on 16 June, when the next parliamentary sitting is expected.