Micronesia: public finances

Where does the Micronesian government get its money?

The national government of the Federated States of Micronesia expected total revenue of US$114.9 million in fiscal year 2025: US$63.0 million from domestic sources and US$51.9 million from Compact of Free Association grants, according to the Department of Finance and Administration's Citizens Budget for 2025. Fishing access fees were the largest domestic item, at US$34.0 million.

Domestic revenue was US$143.0 million in fiscal year 2022 (audited) and US$62.75 million in 2024. The budget explains part of the fall: since 2024 the national government passes half of fishing access fees to the four states, after a constitutional amendment. Corporate tax was US$59.2 million in 2022 and is projected at US$9.0 million. The fiscal year runs from October to September.

Official sources: DoFA: Citizens Budget, national government fiscal year 2025 (PDF)

What is Micronesia's national debt?

In 2025, general government gross debt in Micronesia was 8.8% of GDP, according to the IMF. No year since 2005 has been lower. East Asia & Pacific median: 45.0% of GDP; Micronesia is 25th highest of 29. World rank, highest first: 178th of 185.

Does Micronesia's government borrow more than it raises?

The IMF puts general government net lending or borrowing in Micronesia at 0.4% of GDP in 2025. Its high point since 2005 was 2018, at 24.4% of GDP; its low point was 2005, at -5.6% of GDP. East Asia & Pacific median: -1.7% of GDP; Micronesia is 10th highest of 29. Of 188 countries with 2025 data, 32nd highest.

What is Micronesia's government revenue?

The IMF puts general government revenue in Micronesia at 60.0% of GDP in 2025. Since 2005 it has ranged from 54.6% of GDP (2005) to 81.2% of GDP (2018). Across East Asia & Pacific the middle value was 33.6% of GDP, and Micronesia placed 5th highest of 29. World rank, highest first: 7th of 187.

How big is Micronesia's government spending as a share of GDP?

59.6% of GDP: that is general government spending in Micronesia for 2025, according to the IMF. The peak was 68.5% of GDP in 2010 and the low 55.0% of GDP in 2014. East Asia & Pacific median: 32.9% of GDP; Micronesia is 6th highest of 29. Worldwide: 8th of 186.

What is tax revenue in Micronesia?

The latest figure from the IMF, for 2020, is 7.0% of GDP. Its high point since 2008 was 2018, at 25.7% of GDP; its low point was 2008, at 4.3% of GDP. It is 23rd highest of 23 in East Asia & Pacific, where the median is 14.1% of GDP. Worldwide: 129th of 136.