The focus of Australian aid in Nauru's public sector is to support key government reforms to better manage their national budgets and development planning, strengthen public financial management, reduce fiscal risk and improve revenue generation. To achieve this, Australia is funding the placement costs of four deputy secretaries within the Departments of Finance and Sustainable Development. In addition, Australia is also supporting the Government of Nauru to implement tax reforms through placement of a specialist technical advisor.
Nauru Public Sector Reform
Up to $3.4 million, 2016-2017
The Nauru Public Sector Reform Initiative supports Government of Nauru strategies for public sector reform, improved economic governance and financial management. The emphases are: strengthening the capacity of central agencies to deliver and manage national budgets aligned with national development policies and plans; developing and implementing policies that reduce fiscal risks and improve revenue generation, including from state-owned enterprises (SOEs) and strengthening development coordination, planning and reporting.
The Intergenerational Trust Fund for the People of Nauru
Up to $2.5 million, 2017-2018
The Intergenerational Trust Fund for the People of Nauru was formally established in November 2015 under memoranda of understanding between the Government of Nauru and contributing parties, Australia and Taiwan. The Asian Development Bank (ADB) was instrumental in the design of the fund and also provided an initial contribution.
The fund became fully operational in May 2016. It aims to provide a future revenue stream to supplement domestic revenue in anticipation of current resources (phosphate and fisheries) declining over the next 20 years.
The governance committee for the fund consists of representatives from all current contributing parties, who are responsible for the operation, supervision and management of the Fund, investment and distribution of resources, and the conclusion of arrangements with additional contributing parties.