Palau: public finances

How much debt does Palau have?

Palau's general government debt was 63.3% of GDP at the end of fiscal year 2024 and an estimated 56.1% in FY2025, according to the IMF's 2025 Article IV staff report. It had peaked at about 78% during the pandemic, after borrowing from the Asian Development Bank. The IMF projects 50.2% in FY2026.

The IMF table shows external public debt at the same level. The IMF notes that Palau's debt management policy sets a debt anchor of 30% of GDP. The IMF's mission press release of November 2025 used slightly different figures (a peak of 81% falling to 67%). The President's July 2026 address says debt service rose from about 2.5% of the national budget in 2021 to nearly 13% in 2026.

Official sources: IMF: Republic of Palau, 2025 Article IV consultation, Country Report No. 26/22 (PDF) · Office of the President: State of the Republic Address, 22 July 2026 (PDF)

How big is Palau's national budget?

Palau's proposed operational budget for fiscal year 2027 is USD 165.8 million, nearly 11% more than the year before, according to the President's State of the Republic Address of July 2026. It was submitted to the Olbiil Era Kelulau (Congress) on 14 July 2026.

The proposal allocates USD 19.5 million to the Ministry of Health and Human Services, USD 14.1 million to the Ministry of Education, USD 9.0 million to the Ministry of Justice for public safety and USD 12.5 million to prepay high-interest debt. These are proposals until Congress passes the budget. The IMF's Article IV report puts government revenue at 53.7% of GDP in FY2025, of which 24.9% of GDP was grants, and records a primary surplus of 2.9% of GDP.

Official sources: Office of the President: State of the Republic Address, 22 July 2026 (PDF) · IMF: Republic of Palau, 2025 Article IV consultation, Country Report No. 26/22 (PDF)

What is Palau's debt to GDP ratio?

According to the IMF, general government gross debt in Palau was 52.8% of GDP in 2025. The peak was 73.5% of GDP in 2021 and the low 15.6% of GDP in 2012. Across East Asia & Pacific the middle value was 45.0% of GDP, and Palau placed 10th highest of 29. World rank, highest first: 95th of 185.

What is Palau's budget deficit?

In 2025, general government net lending or borrowing in Palau was -0.4% of GDP, according to the IMF, a deficit. The peak was 6.2% of GDP in 2018 and the low -13.0% of GDP in 2020. Across East Asia & Pacific the middle value was -1.7% of GDP, and Palau placed 12th highest of 29. Worldwide: 44th of 188.

How much revenue does Palau's government raise?

According to the IMF, general government revenue in Palau was 52.8% of GDP in 2025. Since 2005 it has ranged from 39.6% of GDP (2017) to 59.4% of GDP (2022). It is 6th highest of 29 in East Asia & Pacific, where the median is 33.6% of GDP. Worldwide: 13th of 187.

How much does Palau's government spend?

53.2% of GDP: that is general government spending in Palau for 2025, according to the IMF. Its high point since 2005 was 2021, at 65.9% of GDP; its low point was 2017, at 34.9% of GDP. Across East Asia & Pacific the middle value was 32.9% of GDP, and Palau placed 7th highest of 29. World rank, highest first: 14th of 186.

How much tax does Palau collect?

18.1% of GDP: that is central government tax revenue in Palau for 2020, according to the IMF. Since 2008 it has ranged from 15.9% of GDP (2009) to 21.0% of GDP (2018). East Asia & Pacific median: 14.1% of GDP; Palau is 8th highest of 23. World rank, highest first: 52nd of 136.