BY SAMIE WAIKORI
The Central Islands Provincial Assembly has passed a budget of $34,381,841 for the 2026/2027 financial year (FY)—the highest in more than 20 years, after the closure of key investments in the province such as Solomon Taiyo, RIPEL, and Anuha Island Resort.
The budget was approved under the theme, “Empowering Transformations, Resourcing Our Future,” which underscores the government’s commitment to driving positive change and laying a strong foundation for future development in the province.
The theme also reflects the province’s shared ambition to move decisively by ensuring financial resources are strategically mobilized and effectively utilised to transform the province and improve the livelihoods of its people.
Presenting the budget, Central Islands Province Minister for Finance and Treasury, MPA Dagnal Meleha, said the $34,381,841 budget comprises of $9,555,263 in recurrent revenue and $24,826,577 in capital revenue.
The capital component includes funding from donor partners as well as carried-forward balances from the previous fiscal year.
He noted that total recurrent revenue for 2026/2027 represents an increase of around 21 percent compared to the last financial year, mainly due to a projected rise in Fixed Service Grants (FSG).
Meleha said the FSG for the 2026/2027 financial year is estimated at $6,711,933, reflecting a 12 percent increase from the previous year.
He added that this increase follows a successful bid by the Ministry of Provincial Government and Institutional Strengthening (MPGIS) for a 5.5 percent rise in recurrent revenue.
An additional 5 percent increase in FSG has also been allocated to support the consolidation of Ward Support Officers’ salaries and employment benefits under the provincial government staff establishment, effective this financial year.
In terms of capital revenue, Meleha highlighted a significant increase of around 92 percent compared to the last financial year.
He attributed this increase to several key funding sources, including:
- SIG PCDF (SBD $11,473,992): The province is projected to receive new grants totalling SBD $2,262,136.49 following its qualification in the last financial year’s PCDF assessment, along with a carried-forward balance of $3,025,797.
- An additional SBD $6,186,058.50 is expected from the Solomon Islands Government (SIG) as arrears owed to the province for its qualification in the 2023/2024 PCDF assessment.
“I must acknowledge both the Salini-led former executive and the current government for their consistent pursuit of these PCDF arrears with MPGIS. We must continue to pursue the final payments of outstanding arrears, as these are funds legally owed to the province,” Meleha said.
- PCDF-IEDCR (SBD $3,925,780): No new allocations will be transferred to the nine provinces this year due to low utilization rates. This amount is a carried-forward commitment from the previous financial year.
- PCDF-LoCAL (SBD $1,943,286): This allocation represents a 100 percent increase from the previous year.
- PCDF-GOV4RES (SBD $169,512): This is a carried-forward balance from last year.
- UNDP-EU (SBD $541,056): This funding supports the School and Health WASH projects under the UNDP-EU PGSD program.
Meleha said these allocations mainly form the bulk of the recurrent and capital revenues under the total SBD $34,381,841 budget for the 2026/2027 financial year.
He emphasized that the budget reflects the Central Islands provincial government’s vision, priorities, and commitment to its people.
Meleha said provincial government aims to empower communities, transform service delivery, strengthen the local economy, and build a resilient and prosperous Central Province through this budget.
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