A fiscal and economic response package amounting to 66.3 million Samoan tala (about 3 percent of GDP) was approved by parliament on April 7, 2020, centered around the mission of “Support the private sector so they can feed the nation.” It included: (i) expenditure to cover the immediate medical response; (ii) assistance to the private sector; and (iii) assistance to individuals and households. The government has been stepping up its efforts to increase the level of preparedness and prevention. Temporary quarantine facilities have been established in key areas. The support for the private sector includes: a temporary exemption on import duties on the most commonly bought food items for households; duty concessions to be applied to an expanded list of agricultural and fishing materials; a grace period of three months to be applied for all loan payments; and a six-month moratorium on pension contributions for the hospitality sector. Support for citizens includes: establishment of the Emergency Price Control Board to keep wholesale and retail prices in check and bring them down if necessary; provision of financial assistance to members of the National Provident Fund in the form of a refund of their loan payments for March 2020; and a temporary reduction of utility bills (both electricity and water) for six months through September 2020

 

On June 30, Parliament approved the FY2021 budget, including the second phase of the fiscal and economic response package that amounts to 83.1 million Samoan tala (about 3.8 percent of GDP). The budget is centered around the mission of “Weaving a prosperous and secure future for Samoa together,” and includes a similar set of measures as in the first stimulus package. It provides a dividend payout by Samoa National Provident Fund, a benefit of 50 tala per citizen for a national ID registration, a special one-off pension payment, unemployment benefit, financial support for utility bills, and paid training for the hospitality sector. The health sector continues to be a priority sector for the government in light of the COVID-19 pandemic, and the package finances construction and upgrade of rural hospitals. The government will continue to assist remote education services.

 

(Updated: May 2022)