Samoa’s new cabinet approves use of an “Emergency Budget”

Apia, SAMOA — (September 18, 2025) A Treasury Office report has revealed that the government has just enough funds left in the salary item of the national budget to cover one more week of wages for public servants.

However, the report noted that these funds do not include outstanding overtime payments owed to several ministries, which have been withheld for some time due to budget constraints.

Addressing the urgent financial situation, the new government has placed payment of public servant salaries as the top priority under its Emergency Budget allocations.

At its first meeting on Wednesday, Cabinet approved the use of an Emergency Budget under Article 105 of the Constitution, which allows for special financial measures to address unforeseen crises. The Cabinet decision has since been submitted to the Head of State for final approval.

Under these emergency provisions, the Ministry of Finance (MOF) will prepare and submit budget allocations and expenditure plans on a weekly basis for the Head of State’s authorization. This arrangement will remain in place for a 30-day period, providing temporary relief while the government works to stabilize its financial position.

The gravity of the situation was emphasized by Prime Minister Laaulialemalietoa Leuatea Polataivao Fosi during his inaugural address following his swearing-in on Tuesday. He declared that the government’s most pressing task is to prepare a comprehensive budget to carry Samoa through the next nine months.

“Close collaboration between the government and its ministries is vital to achieving this goal,” the Prime Minister stressed.

He reassured public servants that all salaries and overtime payments will be honored. However, he appealed for patience as the government works to prioritize spending during this critical period.

“We will pay what is due to our public servants,” the Prime Minister said. “But we ask for your understanding and patience as we work to stabilize our finances.”

The Prime Minister said the MOF will set out payments based on key priorities, which include salaries and overdue overtime payments, and funding for patients requiring overseas medical treatment, a cost totaling approximately NZ$1.5 million under the Overseas Medical Scheme.

Beyond the emergency measures, the Prime Minister confirmed that the MOF has also been instructed to prepare the main national budget, which will be tabled in Parliament by mid-October.

This budget will undergo the full parliamentary process of debate, scrutiny, and approval, providing a detailed plan to carry the country through the next nine months of the fiscal year.

Following Tuesday’s swearing-in ceremony, Cabinet Ministers immediately moved into their respective offices and held initial meetings with their staff in the afternoon.

On Wednesday, Chief Executive Officers (CEOs) and their Assistants from all government ministries met with Cabinet. They have been tasked to submit updated reports on their respective ministries, which will help guide the government’s priorities over the coming weeks.

In two weeks’ time, Cabinet will conduct site visits to all ministries and state-owned enterprises (SOEs). These visits will focus on assessing both physical facilities and manpower needs, providing Cabinet with first-hand insight into the state of public services and resources.

One area of particular concern is the National Hospital at Motootua, which, despite being only 13 years old, is reportedly in serious disrepair.

The government is considering whether to demolish the current facility and rebuild from scratch, as piecemeal repairs have proven costly and ineffective. Officials say the decision will be based on long-term sustainability and the need to ensure the country’s main healthcare facility can meet growing demands.