Vanuatu Citizenship by Investment Program: Nearly 40% of National Government Revenue

What Does This Mean for Those Considering Vanuatu Citizenship Planning?

A public, independently verifiable government fiscal report often speaks louder than any marketing message. This data sends two key signals:

First, Vanuatu's fiscal position is solid, no new borrowing, no overspending. This is a responsible, creditworthy sovereign nation, not a country at risk of sudden fiscal collapse or abruptly shutting down its programs.

Second, the citizenship program is now one of the pillars of national revenue, contributing nearly 40% of total government income. This gives the government strong, ongoing incentive to maintain and continue optimizing the program's stability, rather than treating it as a dispensable side business.

For anyone evaluating a citizenship or residency planning option, a country's fiscal health and the government's level of commitment to the program are far more meaningful benchmarks than any promotional slogan.

Source: Vanuatu Daily Post, July 25, 2026.

According to a report by the Vanuatu Daily Post on July 25, 2026, the Government of Vanuatu has officially released its fiscal performance data for the first half of the 2026 financial year (January–June) and the numbers make for an impressive read.

1. A Budget Surplus, Well Above Target

In the first half of the 2026 financial year, the Vanuatu Government recorded a net operating surplus of VT9.3 billion, 8.9% above its budget forecast, and up 5.7% year-on-year.

Even more notable: the government achieved this surplus without issuing any new bonds, and repaid all debts on schedule, including VT933.1 million in treasury bills and VT916.6 million in external debt. Deputy Prime Minister and Minister of Finance Johnny Koanapo said the decision not to issue bonds was a deliberate strategic choice rather than a necessity driven by fiscal pressure: "Our books are in order, our obligations are being met, and we are doing this without turning to the bond market."

2. Revenue Breakdown: The Citizenship Programme Contributes Nearly 40%

By the end of June, total government revenue reached VT29 billion, 55% of the revised annual target of VT53.9 billion. The revenue breakdown was as follows:

• CBI Program: VT11.4 billion, approximately 39% of total revenue, the second-largest single revenue source after VAT

• Value Added Tax (VAT): VT8.3 billion

• International trade taxes: VT2.9 billion

• Excise tax: VT2.1 billion

• Budget support (European Development Fund): VT6.2 billion

These figures make one thing clear: Vanuatu's citizenship program is no longer a marginal source of "extra income" , it has become one of the core pillars sustaining the country's national finances.

3. Disciplined Spending, Managed with Restraint

Government expenditure for the period totaled VT20.1 billion, 14.5% below budget and roughly flat year-on-year (up just 0.2%). Deputy PM Koanapo acknowledged that some of the underspending reflects delays in project implementation rather than pure cost-cutting, and called on all ministries to accelerate the rollout of parliament-approved budget items in the second half of the year.

4. Political Stability as the Foundation

Deputy PM Koanapo attributed this fiscal performance to the stability and unity of the government under Prime Minister Jotham Napat: "A country cannot manage its finances well if its politics are unsettled. This government is stable, it is united, and it is working. These numbers are what stability looks like on paper."

[Image: HwG's latest successful Vanuatu passport case]