Nauru: Fiscal Sustainability Reform Program
The government of Nauru sought to achieve fiscal sustainability by (i) strengthening public finance management (PFM), (ii) realizing fiscal savings through power sector efficiency, and (iii) putting in place a mechanism to save windfall revenues for future generations. In 2016, ADB approved the Nauru Fiscal Sustainability Reform Program. This program was built on earlier reforms supported by ADB (and other development partners) to (i) improve PFM and the performance of state-owned enterprises (SOEs), and (ii) establish the Nauru Intergenerational Trust Fund (NTF) that would save unexpected gains or windfalls in public revenue. Due to its recent history of debt distress, Nauru is eligible for Asian Development Fund grants. The program—which was built on and informed by earlier reforms and technical assistance (TA) provided by ADB and other development partners—was designed to support the government’s long-term development goal of improving fiscal sustainability.
This report validates the completion report's assessment of the program. IED overall assessment: Successful.