Forming a new government to avert an economic disaster

By The Editorial Board 27 August 2025, 10:00AM

Of the more than 102,000 registered voters, 1000 will be casting their votes in the pre-polling, which begins on Wednesday. The nation is edging closer to electing a new government.

The bigger worry is not who will form the government, but when the government will be formed. The delay in forming a new government spells an economic disaster, according to the caretaker Minister of Finance, Lautimuia Uelese Vaʻai. This was the biggest danger when the budget failed. The power grabbers may not have taken into account how this decision would affect the economy, the nation and its people.

Lautimuia said his main concern is that Samoa might experience a repeat of the 2021 election impasse, which left the country without a fully functioning government for weeks. He explained that Samoa is currently operating on only 25 per cent of the previous year’s budget, a constitutional safeguard that permits limited expenditure during an election period. This arrangement was activated after Parliament failed to pass the 2025/2026 national budget before it was dissolved for early elections.

This brings in a new scenario for consideration. Suppose the election results and the formation of the government are delayed. In that case, the Constitution allows the caretaker government, essentially the prime minister, to advise the Head of State to declare a State of Emergency. The longer the delay in forming a new government, the longer the caretaker government may stay in power.

The Constitution states that parliament should convene no later than 45 days after the final results are announced. That is possible; however, the new government has to announce a budget at the earliest possible time. The 25 per cent allocation from the 2024/2025 budget is for three months; it ends at the end of September. This means that a new government has to be formed within 30 days and a budget announced.

We are faced with a scenario where all government ministries could be looking at halting their operations temporarily. Logically, that will not be allowed to happen; however, after September, there is no confirmation yet on how civil servants will be paid, how social welfare payments will be made, how pensions will be given, or how government ministries will fund their operations or pay their bills.

The Minister pointed out that the 25 per cent spending cap is already placing pressure on the economy. Essential government services are restricted, development projects have been put on hold, and the private sector is beginning to feel the slowdown. Several donor-funded programs have been frozen until a new government is sworn in, as international partners are watching Samoa’s political stability closely. Donors only work with elected governments, and there are many donor-funded projects that are ongoing. The government is the driver of the economy as the biggest employer and as an investor. The private sector depends heavily on government contracts. Many projects are now blocked.

There is no overtime pay for medical frontliners, and it looks like the chances that the police, emergency responders such as fire and ambulance and others, termed as essential services, would soon follow are getting high. It is only a matter of time before constraints of working with an insufficient budget are felt.

We are here because some parliamentarians wanted to defeat the budget and head into early elections, thinking this was the best way to grab power. The greed for power was so great that many did not think of the chain reactions that would follow.

It will be interesting when the results are announced. Would there be an outright winner? The most hoped-for scenario, or will we see parties and independents combining? Whatever the case may be, the nation needs a government to be in place at the earliest to deliver a national budget for the sake of the nation.

Happy voting and exercise your right to vote without fear or favour.

By The Editorial Board 27 August 2025, 10:00AM
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