HONIARA — The Guadalcanal Provincial Government has passed its most ambitious budget in history, with Premier Hon. William Atu presenting a record $71.7 million budget for the 2026–2027 financial year.
Delivered under the theme “Walk the Talk,” the budget signals a determined push by the province to back its policy promises with real action for the people of Guadalcanal since taking office in 2024.
The new budget marks a striking upward trajectory in provincial finances. The budget stood at $55.1 million in 2024–2025, grew to $64.4 million in 2025–2026, and now reaches $71.7 million, an increase of over 11 percent year-on-year and nearly 30 percent over two years.
The province draws on three major revenue sources: Fixed Service Grants from the national government through MPGIS, the Provincial Capacity Development Fund (PCDF), and Local Revenue including business licences, royalties, and property rates.
For 2026–2027, Guadalcanal will receive $10.9 million in Fixed Service Grants — a 5.5 percent increase on last year.
The PCDF, assessed against 11 Minimum Conditions and 8 Performance Measures, will contribute $38.5 million. To note, Guadalcanal has passed PCDF for five consecutive years.
On local revenue, the province dramatically outperformed expectations this year, collecting $19.4 million against a target of $12.7 million. The 2026–2027 local revenue target has been set at $19 million, with Premier Atu confident it will be surpassed again once the revenue collection mechanisms his government undertook since mid 2025 are in effect.
Apart from the other sectors, Premier Atu outlined six major capital projects at the heart of the budget:
First, the Guadalcanal State Office which was endorsed by the Executive in November 2025. Its mandate is to review the Federal Draft Constitution and prepare provincial submissions to the Constituent Assembly.
Second, the Guadalcanal Provincial Chamber at Mamara, which is expected to be completed this financial year. The Guadalcanal Provincial Government will be slowly transitioning to Mamara mid next year once the Assembly Chamber is fully operational.
Third, is the AvuAvu Airstrip in East Guadalcanal that is funded at approximately $8.6 million through the Solomon Islands Government’s national budget. Its rehabilitation is currently underway with a contractor on site. It is expected to be operational by early next year, reopening air services to the weather coast region.
Next is the Visale Seawall which is originally intended for funding under the LoCAL for $5 million. However, the project will now be fully funded by the provincial government. A total of 680 metres of sea wall will be constructed starting this year. This is to protect the most vulnerable and risk coastline areas at Visale.
Lastly, the 51km Kaoka–Marau Road. The survey has been completed and submitted by a contractor. When built, the road will connect Aola to Honiara and open economic links to Malaita and Makira Provinces through shorter shipping routes with less fuel consumption. Additionally, the survey for the Lambi-to-Variana road will also be funded, unlocking access to 668 hectares of agricultural land on west Guadalcanal.
Premier Atu also raised concerns about global pressures that could affect the budget, including potential fuel price hikes linked to the US/Israel–Iran conflict, which he warned could raise the cost of goods and services in communities across the province.
Despite these concerns, Premier Atu said that his Executive Government is determined to deliver the government services by putting the interests of Guadalcanal people first.
He concluded by saying “We cannot separate politics from economy. We need finances to implement our policies tangibly.”
