Tuvalu: public finances

Does Tuvalu have a budget deficit?

Tuvalu's 2026–27 budget projects spending of A$155.8 million and revenue of A$143.9 million, an overall deficit of A$11.9 million, according to the Ministry of Finance and Economic Development's 2026–2027 National Budget.

The budget says the deficit will mostly be financed from the General Account, helped by a stronger surplus in 2025–26, with only a limited draw on the Consolidated Investment Fund. The extra spending is aimed at cushioning the economy from the fuel crisis. The budget's fiscal targets include keeping the deficit below 10% of GDP, public debt below 30% of GDP, and the Consolidated Investment Fund above 16% of the Tuvalu Trust Fund's maintained value.

Official sources: Ministry of Finance and Economic Development: 2026–2027 National Budget (PDF)

How much debt does Tuvalu have?

Tuvalu's external debt is expected to be about 1.8% of GDP in 2026–27, down from 5.1% in 2024–25 and about 2.7% in 2025–26, according to the Ministry of Finance and Economic Development's 2026–2027 National Budget. The Asian Development Bank is the only remaining creditor, with debt falling from A$2.69 million in 2022 to A$1.38 million.

The loan from the International Cooperation and Development Fund (ICDF) was fully repaid in 2025–26. The government has not taken on new debt since 2019. Debt service was about 0.68% of government revenue. The budget's fiscal rules cap public debt at 30% of GDP.

Official sources: Ministry of Finance and Economic Development: 2026–2027 National Budget (PDF)

What is Tuvalu's government debt?

2.8% of GDP: that is general government gross debt in Tuvalu for 2025, according to the IMF. No year since 2005 has been lower. Across East Asia & Pacific the middle value was 45.0% of GDP, and Tuvalu placed 28th highest of 29. Of 185 countries with 2025 data, 183rd highest.

What is Tuvalu's fiscal deficit?

According to the IMF, general government net lending or borrowing in Tuvalu was 25.8% of GDP in 2025. The peak was 29.9% of GDP in 2018 and the low -36.9% of GDP in 2006. East Asia & Pacific median: -1.7% of GDP; Tuvalu is 1st highest of 29. Worldwide: 1st of 188.

How much does Tuvalu's government take in?

According to the IMF, general government revenue in Tuvalu was 111.9% of GDP in 2025. Its high point since 2005 was 2018, at 153.8% of GDP; its low point was 2006, at 61.8% of GDP. Across East Asia & Pacific the middle value was 33.6% of GDP, and Tuvalu placed 2nd highest of 29. Worldwide: 2nd of 187.

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

The latest figure from the IMF, for 2025, is 86.0% of GDP. Since 2005 it has ranged from 76.9% of GDP (2012) to 126.8% of GDP (2023). East Asia & Pacific median: 32.9% of GDP; Tuvalu is 4th highest of 29. Worldwide: 5th of 186.