Government of Tuvalu 2018 National Budget Presented on 06 December 2017 By the Hon Maatia Toafa Minister for Finance and Economic Development Table of Contents ACRONYMS AND ABBREVIATIONS ............................................................................................ 4 FOREWORD BY MINISTER FOR FINANCE AND ECONOMIC DEVELOPMENT .............................. 7 2018 BUDGET HIGHLIGHTS .................................................................................................... 9 DELIVERING ON THE GOVERNMENT’S POLICY PRIORITIES ......................................................................... 9 NATIONAL STRATEGY FOR SUSTAINABLE DEVELOPMENT 2016 – 2020 .................................. 15 2018 ECONOMIC OUTLOOK ................................................................................................. 16 MEDIUM TERM FISCAL FRAMEWORK 2018 – 2020 ............................................................... 19 MTFF AGGREGATES ....................................................................................................................... 19 REVENUE ...................................................................................................................................... 19 Taxation Revenue .................................................................................................................. 20 Investment Revenue .............................................................................................................. 20 Government Charges ............................................................................................................. 20 Development Partner Assistance .......................................................................................... 21 EXPENDITURE ................................................................................................................................ 21 Government Payroll ............................................................................................................... 21 Travel and Communications .................................................................................................. 22 Maintenance .......................................................................................................................... 22 Deferred Maintenance Fund ................................................................................................. 22 Goods and Services ................................................................................................................ 22 Medical Treatment Schemes ................................................................................................. 22 Fuel and Oil ............................................................................................................................ 23 Grants and Subsidies ............................................................................................................. 23 Scholarships ........................................................................................................................... 23 Student Education Loan Fund (SELF) ..................................................................................... 23 Community Service Obligations (CSOs)................................................................................. 23 Overseas Contributions ......................................................................................................... 24 Other Expenses ...................................................................................................................... 24 Capital .................................................................................................................................... 24 Loan Repayment .................................................................................................................... 24 Interest Expense ..................................................................................................................... 24 FINANCIAL ASSETS .......................................................................................................................... 25 Tuvalu Trust Fund .................................................................................................................. 25 Consolidated Investment Fund .............................................................................................. 25 1 | P a g e PUBLIC DEBT ................................................................................................................................. 25 DEVELOPMENT PARTNER ASSISTANCE ................................................................................. 27 2018 FISCAL BUDGET RISK AND FISCAL RATIOS .................................................................... 30 2018 MINISTRY PROGRAM BUDGET ESTIMATES ................................................................... 34 HEAD A: OFFICE OF THE GOVERNOR GENERAL .................................................................................... 35 2018 Ministry Budget Estimates ........................................................................................... 35 New funding approved in the 2018 Budget .......................................................................... 36 Program Budgets ................................................................................................................... 36 HEAD B: OFFICE OF THE PRIME MINISTER .......................................................................................... 37 2018 Ministry Budget Estimates ........................................................................................... 38 New funding approved in the 2018 Budget .......................................................................... 40 Program Budgets ................................................................................................................... 41 HEAD C: LEGAL SERVICES ................................................................................................................. 44 2018 Ministry Budget Estimates ........................................................................................... 46 New funding approved in the 2018 Budget .......................................................................... 47 Program Budgets ................................................................................................................... 48 HEAD D: PARLIAMENT .................................................................................................................... 50 2018 Ministry Budget Estimates ........................................................................................... 51 New funding approved in the 2018 Budget .......................................................................... 51 Program Budgets ................................................................................................................... 52 HEAD E: OFFICE OF THE AUDITOR GENERAL ........................................................................................ 53 2018 Ministry Budget Estimates ........................................................................................... 53 New funding approved in the 2018 Budget .......................................................................... 54 Program Budgets ................................................................................................................... 55 HEAD F: MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT ............................................................ 56 2018 Ministry Budget Estimates ........................................................................................... 60 New funding approved in the 2018 Budget .......................................................................... 62 Program Budgets ................................................................................................................... 63 HEAD G: MINISTRY OF PUBLIC UTILITIES AND INFRASTRUCTURE ............................................................ 68 2018 Ministry Budget Estimates ........................................................................................... 69 New funding approved in the 2018 Budget .......................................................................... 70 Program Budgets ................................................................................................................... 71 HEAD H: MINISTRY OF HEALTH ........................................................................................................ 75 2018 Ministry Budget Estimates ........................................................................................... 76 New funding approved in the 2018 Budget .......................................................................... 77 2 | P a g e Program Budgets ................................................................................................................... 78 HEAD I: MINISTRY OF NATURAL RESOURCES ...................................................................................... 82 2018 Ministry Budget Estimates ........................................................................................... 84 New funding approved in the 2018 Budget .......................................................................... 85 HEAD J: MINISTRY OF HOME AFFAIRS AND RURAL DEVELOPMENT ......................................................... 89 2018 Ministry Budget Estimates ..........................................................................................