Vanuatu’s program has been performing well for the past five years. And this year is no different.
Vanuatu’s revenues hit a new record of $132 million last year, compared to 2019’s $105.4 million, thus representing a 25.8% increase,
In fact, the increase was greater than that of previous years, where 2018 to 2019 saw a 20.3% growth.
This has made it the government’s largest income source that year.
Fighting Through COVID-19
Vanuatu’s international transport was hit hard by the pandemic.
The past year saw a suspension of commercials flights into the country. Tourism dropped to nil since April 2020.
In fact, the only source of finance keeping the government afloat were the investment programs.
That aside, it’s the fifth year for Vanuatu to experience growth in its CBI program, and in spite of severe criticism about the program throughout 2020.
The Program as a Share of Government Revenue
In 2020, 42% of Vanuatu’s government revenue came from its two CBI programs – those being the VCP and DSP.
This is also a new annual record for Vanuatu, where in the previous year, only 37% of cash flow was from those programs.
On the other hand, VAT collections were much less than the CBI income. VAT amounted to the second largest income source, reaching 18.9% of the full amount.
Tax and export/import duties (plus excise taxes) were at 17%, and 9% came from foreign aid.