Solomon Islands: public finances

What is the Solomon Islands budget deficit?

The Solomon Islands' original 2026 budget planned a deficit of $548.2 million, or 3.5% of GDP, according to the Central Bank of Solomon Islands Monetary Policy Report of September 2026. A proposed supplementary budget would add $758.4 million of spending and raise the projected deficit to $914.6 million, or 5.8% of GDP.

The report notes that the supplementary budget had not yet been passed by Parliament when it was written. The extra spending is mainly for Tropical Cyclone Maila recovery and reconstruction, scholarships, infrastructure and rural development. Figures are in Solomon Islands dollars.

Official sources: CBSI: Monetary Policy Report September 2026 (PDF)

How much debt does the Solomon Islands government have?

Solomon Islands public debt rose by 6% to $4,520.7 million, or 29% of GDP, in June 2026, from $4,274 million at the end of 2025, according to the Central Bank of Solomon Islands Monetary Policy Report of September 2026. The rise came mainly from external loan disbursements, so the external share of the debt increased.

The central bank expects debt to reach around 32% of GDP in the second half of 2026, below the government's debt sustainability threshold of 35% of GDP. Amounts are in Solomon Islands dollars. The report says the government continued to meet its debt service payments.

Official sources: CBSI: Monetary Policy Report September 2026 (PDF)

How much revenue does the Solomon Islands government collect?

Solomon Islands government revenue was $2,044 million in the first half of 2026, 11% less than in the second half of 2025 but 5% more than in the first half of 2025, according to the Central Bank of Solomon Islands Monetary Policy Report of September 2026. Spending fell 7% to $2,306 million, mainly because of lower capital spending.

The report puts revenue at 25.9% of GDP and spending at 29.2% of GDP for the period. It lists falling revenue from logging and fishing as a downside risk, and stronger enforcement of tax exemptions as an upside. Amounts are in Solomon Islands dollars.

Official sources: CBSI: Monetary Policy Report September 2026 (PDF)

What is the sales tax rate in the Solomon Islands?

The Solomon Islands charges goods tax at 10% on locally manufactured goods and 15% on imported goods, according to the Inland Revenue Division. Sales tax of 10% applies to many services, including telecommunications, restaurants, professional services and vehicle rental, according to its sales tax page.

The country has no general VAT. Goods tax is charged at the wholesale stage, and importers pay it to Customs. Some items are exempt, including medicines and rice. Some sales taxes are fixed amounts, such as SBD 10 per air ticket and 10 cents per litre of petroleum.

Official sources: IRD: goods tax · IRD: sales tax

How large was the Solomon Islands budget deficit in early 2026?

The Solomon Islands fiscal deficit could widen to SBD 262 million, or 3.3% of GDP, in the first half of 2026, from SBD 187 million (2.5% of GDP) in the second half of 2025, according to preliminary estimates in the Central Bank of Solomon Islands Monetary Policy Report of September 2026.

The bank says revenue fell faster than spending. It notes the new government's focus on tax compliance, fewer tax exemptions and stronger resource taxation, and lists falling logging and fishing revenue as a risk. Half-year figures are preliminary and may be revised.

Official sources: Central Bank of Solomon Islands: Monetary Policy Report, September 2026 (PDF)

What is the Solomon Islands' government debt?

29.6% of GDP: that is general government gross debt in the Solomon Islands for 2025, according to the IMF. Its high point since 2005 was 2005, at 38.5% of GDP; its low point was 2016, at 7.5% of GDP. East Asia & Pacific median: 45.0% of GDP; the Solomon Islands is 19th highest of 29. World rank, highest first: 157th of 185.

Does the Solomon Islands' government borrow more than it raises?

The IMF puts general government net lending or borrowing in the Solomon Islands at -3.9% of GDP in 2025, a deficit. Since 2005 it has ranged from -4.1% of GDP (2023) to 13.7% of GDP (2007). Across East Asia & Pacific the middle value was -1.7% of GDP, and the Solomon Islands placed 22nd highest of 29. Of 188 countries with 2025 data, 126th highest.

What is the Solomon Islands' government revenue?

The IMF puts general government revenue in the Solomon Islands at 38.2% of GDP in 2025. The peak was 45.4% of GDP in 2013 and the low 24.8% of GDP in 2009. East Asia & Pacific median: 33.6% of GDP; the Solomon Islands is 10th highest of 29. Worldwide: 49th of 187.

What is the Solomon Islands' government spending?

According to the IMF, general government spending in the Solomon Islands was 42.1% of GDP in 2025. The peak was 44.2% of GDP in 2023 and the low 14.7% of GDP in 2005. Across East Asia & Pacific the middle value was 32.9% of GDP, and the Solomon Islands placed 9th highest of 29. Worldwide: 46th of 186.

What is the Solomon Islands' tax to GDP ratio?

The IMF puts central government tax revenue in the Solomon Islands at 23.3% of GDP in 2024. Its high point since 2011 was 2013, at 26.6% of GDP; its low point was 2021, at 21.0% of GDP. East Asia & Pacific median: 15.4% of GDP; the Solomon Islands is 3rd highest of 12. Of 92 countries with 2024 data, 19th highest.