The 2025/26 Cook Islands National Budget, totalling $336,135,968, has been scrutinised and reviewed by the Public Accounts Committee (PAC), which has recommended its passage in Parliament.

The Appropriation Bill 2025/26 debate began in Parliament yesterday.

The PAC, led by chair Teokotai Herman, acknowledged the budget, themed 'Akamauruuru’anga i to tatou Iti Tangata' or “Investing in Our People”, and its emphasis on improving the well-being of Cook Islanders. This is achieved through targeted investments in critical areas such as health, education, social support, infrastructure development and economic resilience.

The PAC highlighted key points such as projected economic recovery, where the GDP is expected to reach $600 million with tourism rebounding strongly, and social support, including increases in welfare, child benefits, maternity/paternity leave and the minimum wage.

The Committee also noted that public sector investment includes pay scale updates, teacher training and police resourcing. In terms of infrastructure, there are major upgrades to roads, bridges, airports and harbours, as well as two new ships for Pa Enua transport.

“This year’s Budget demonstrates a bold and strategic commitment to strengthening the foundations of our society,” Herman stated in the PAC’s report on the Bill.

“As the country continues to recover from the impacts of the COVID-19 pandemic, the Committee commends the Government’s prioritisation of economic resilience, social protection, and long-term investment in our people.”

The PAC acknowledged Government has continued its commitment to the Pa Enua saying that the Budget shows, a total of approximately $76 million has been allocated to support the needs of the Pa Enua, reflecting a sustained effort to ensure inclusive development across the nation.

This funding comprises of just over $14.57 million allocated directly to island administrations to meet annual operational needs, $9.46 million provided through various Government support agencies, $8 million allocated via welfare payments to support vulnerable populations, $1.42 million directed toward capital funding for essential development projects; and $42.89 million committed through POBOC, capital expenditure, and Official Development Assistance (ODA) mechanisms.

“The Committee supports these investments as a critical component of strengthening equity between Rarotonga and the Pa Enua and ensuring that national development reaches all communities.

“Notably, the Committee recognises the unprecedented personnel budget allocation of $81.2 million – accounting for 24 per cent of the total Budget – as a critical step toward addressing longstanding issues of staff retention and workforce development.

“This allocation reflects the Government’s commitment to equipping our public service with the resources and incentives needed to operate effectively and sustainably.

“The Committee finds the Budget 2025/2026 to be in compliance with Article 70 of the Constitution of the Cook Islands and the statutory fiscal responsibility framework outlined in PART III of the Ministry of Finance and Economic Management Act 1995-1996; and the Committee hereby commends the Budget 2025/2026 to Parliament; and further recommend that the Appropriation Bill 2025/26 be passed.”

The Parliament debate on the Appropriation Bill continues today.