Solomon Islands introduces new regulations for $490 million in grants

The Solomon Islands government has gazetted the Public Financial Management (Grants) Regulations 2026 to strengthen oversight of approximately $490 million in government-funded grants. Announced by Minister for Finance and Treasury Rexon Ramofafia, these interim regulations were enacted under Section 82 of the Public Financial Management Act 2013.

The move addresses regulatory gaps identified by the Office of the Auditor-General, specifically regarding the Economic Stimulus Package. Previous audits revealed that a lack of standardized frameworks for public and donor-funded discretionary grants led to fragmented administration and millions of dollars in unaccounted funds.

The new interim framework mandates a six-stage grant lifecycle: application, approval, disbursement, project implementation, acquittal, and final certification. This is part of a broader public financial management reform agenda for 2026 and 2027 aimed at achieving operational maturity by 2028, building fiscal buffers before the introduction of Value-Added Tax in 2028, and maintaining public debt below 35 per cent of GDP.