The Appropriation Amendment Bill for 2025 that was tabled in Parliament by Prime Minister Mark Brown on Monday has been referred to the Public Accounts Committee (PAC) that is expected to scrutinise and report on the Bill when Parliament reconvenes on February 24.

Brown says the total appropriation has increased from $328 million to $396 million, a total increase of nearly $68 million.

The Supplementary Budget includes an allocation of $2million for the 60th Te Maeva Nui preparations, $500,000 for critical road maintenance, while $5million allocated for Rarotonga Roads project, improving safety, connectivity and access for residents and visitors.

It also includes investments such as a $3m contribution to procure a vessel to enhance inter-island connectivity and ensuring more reliable transportation to the Pa Enua, Water allowance of $505,000 to support household water allocations.

And also $145,000 to re-establish community policing and $100,000 to strengthen the Police Advisory Committee.

PM Mark Brown in addressing Parliament said the growth in Cook Islands economy and improving fiscal position, are a testament to the steps taken over the past few years to support the economy while balancing its budget realities.

“On the economic front, our latest financial year report for the year ending 2024 shows that our Cook Islands economy has recovered well and is now on the path to continued growth and resilience as we look to the future.”

Brown said that it was no secret that tourism is the key industry in the Cook Islands economy, and over the 2024 calendar year, they welcomed over 170,000 visitors - the second highest ever seen.

“This rebound is a testament to the resilience and strength in our tourism industry, as well as the investments that government has made to ensure these visitors can make their way to the Cook Islands.

“The benefits to this activity are not confined to just the tourism sector, but flows to other sectors as well.

“Our agriculture sector, for example, sustains our growing population by supplying fresh, local produce, essentially creating a local export market where we bring the demand to our shores, rather than sending these goods abroad.”

He said the strength of the economy has enabled government to invest in to the future, while also honouring the past, and have taken proactive steps to work with creditors to accelerate debt repayment, seizing the opportunity presented by the economies strong recovery.

“This early repayment will reduce our annual debt servicing costs, particularly for the loans that were essential during the pandemic that funded the wage subsidies, business grants and the vital support for our people in the times of need.”

Moreover, he said these proactive approach has allowed government to invest in vital infrastructure including road improvements in Rarotonga and measures to ensure reliable shipping for the Pa Enua.

He said a key pillar of government’s development agenda is ensuring safe and efficient infrastructure.

Brown said for the road projects, the investments will enhance road safety and ensure the long-term sustainability of road transport networks.

With $3m allocated to procure a new shipping vessel, Brown said the initiative will facilitate the movement of people and goods between the Pa Enua.

“Reliable infrastructure goes beyond roads and shipping, it also includes access to clean and safe water. We recognise that this is a fundamental right for all Cook Islanders. And to support our communities, we have allocated $500,000 to sustain the Household Water Allowance of 50,000 litres per month, ensuring equitable access to this essential resource.”

He also said: “Public safety remains a basis for our national priorities. To strengthen law enforcement and community trust, we are allocating $145,000 to help the re-establishment of our community policing, reinforcing the vital partnership between police officers and the communities they serve.

“Additionally, $100,000 has been set aside to support the Police Advisory Committee, further enhancing collaboration and public trust.”

He also added that to improve the financial oversight within law enforcement, a memorandum of understanding has been established enabling MFEM shared services to provide financial reporting support to the Cook Islands Police Service.

He said that as part of this arrangement certain funds has been allocated from Police to MFEM for the remainder of this fiscal year ensuring accountability and efficiency in managing resources.

Brown says tourism remains the foundation of the economy and by making sound investments today government is securing a stronger future for generations to come.

Providing an overview of Cook Islands financial position following the recent updates to the 2025 budget, Brown said total increase of nearly $68 million may appear alarming at first glance, but there was a reason for this large increase.

“As government is taking the opportunity to pay down some of its existing debt, to do so we must appropriate for it.

“This increases our appropriation by over $40 million and combined with expenditure plan for the previous fiscal year which was carried forward into the current financial year of $19 million, these two amounts account for the vast majority of this increase.

He said this has been funded through a combination of strong cash position, additional tax revenues and support from development partners.

“This budget increase is dedicated to strengthening the services we provide to our people and enhancing infrastructure across both Rarotonga and the Pa Enua.”

He said $3.4 million will support various agencies in delivering better public services, while $8 million is allocated to critical infrastructure projects.

“These adjustments reflect our commitment to improving the quality of life for our people and ensuring the sustainable development of our nation... we have made commitments to the people of the Cook Islands and we have done our best to honour those commitments whilst at the same time upholding fiscal discipline.

“We have prioritised effectively keeping our eyes on the goal of building a stronger and more thriving sector, a society for us all,” Brown added.