Critical budget funding approved

Civil servants will continue to get paid, and government operations should go on as normal for the next three months, as the caretaker Prime Minister announced the approval of 25 per cent of each government ministry and department's 2024/2025 budget.
Combined, all government offices have access to approximately $290 million. For the Office of the Electoral Commission, this amounts to close to $850,000. The OEC was granted $3.4 million in the 2024/2025 budget.
The new 2025/2026 financial year began on Tuesday, 1 July, and without an approved budget, government operations would have hung in the balance.
This quarter-funding rule is a safeguard measure under Article 95 of the Constitution, which ensures that core public services can continue despite political disruptions. Fiame stressed that while it provides immediate continuity, it also imposes strict financial constraints on government operations.
The limited allocation will prioritise critical expenditures such as public servants’ salaries and overtime for frontline and essential workers, operations of ministries and statutory bodies, pensions for the elderly, persons with disabilities, scholarships, overseas medical treatment schemes, and hospital supplies.
Contracts for the importation of fuel and preparations for the upcoming general elections are also included, alongside the completion of infrastructure projects under the Ministry of Agriculture and Fisheries, such as the Atele pack house and the Savaii office.
Fiame Naomi Mataafa confirmed that this temporary financial measure was activated after the Appropriation Bill 2025–2026 could not proceed to its first reading on May 27.
This was due to the dissolution of Parliament on 3 June. Without a passed budget, the Constitution allows the Minister of Finance, with Cabinet’s consent, to authorise spending not exceeding one-quarter of the previous year’s approved vote.
“The government is now operating under the constitutional limit of 25 per cent of the prior year's budget to ensure essential services continue,” said Fiame in a public statement issued July 1, marking the beginning of the new fiscal year.
Fiame acknowledged that operating on just a quarter of the previous budget poses significant financial challenges. “It is important to note that there are financial implications on our economy given the current situation,” she stated, referring to both the budget cap and the looming elections.
As the country awaits the formation of a new Parliament, no new major spending can be authorised outside what is deemed essential. The 25 per cent threshold serves as a legal ceiling, not merely a guideline, to prevent overspending during a transitional government period.
In anticipation of the general elections and any resulting uncertainties, the cabinet may consider further options for financing service continuity, but only within the bounds set by the Constitution.
Fiame concluded by reaffirming the government’s commitment to stability.
“The cabinet is working to ensure that essential public services are maintained during this period of constitutional transition,” she said.
This temporary funding model underscores the importance of legislative continuity and fiscal discipline, as Samoa steers through a critical period relying on just a quarter of its usual financial resources.
