page_title: Economy of Tuvalu
section_title: Government revenue
hierarchical_section_title: Economy of Tuvalu / Government revenue
caption_attribution_description: English: Government office building in FunafutiLëtzebuergesch: Gebai vun der Regierung vun Tuvalu zu Funafuti.
context_page_description: Tuvalu is a Polynesian island nation located in the Pacific Ocean, midway between Hawaii and Australia, with a population of 11,192 per the 2017 census. The economy of Tuvalu is constrained by its remoteness and lack of economies of scale. Government revenues largely come from fishing licences; direct grants from international donors; and income from the Tuvalu Trust Fund. The lease of its highly fortuitous .tv Top Level Domain also contributes revenue. The sale of stamps since the independence of Tuvalu in 1976 has been an important source of revenue for the country and government. However, such revenue has significantly declined in recent years. Tuvalu has hardly any tourism. It has no tour guides, tour operators or organised activities and no cruise ships visit.
  The Tuvalu Trust Fund was established in 1987 by the United Kingdom, Australia and New Zealand to help supplement national deficits, underpin economic development, and help the nation achieve greater financial autonomy. The Fund has contributed roughly A$79 million, 15% of the annual government budget each year since 1990.
context_section_description: The Tuvalu Trust Fund was established for the intended purpose of helping to supplement national deficits, underpin economic development, and help the nation achieve greater financial autonomy. The Trust Fund, has contributed roughly (A$79 million) 15% of the annual government budget each year since 1990. With a capital value of about 2.5 times GDP, the Trust Fund provides an important cushion for Tuvalu's volatile income sources from fishing and royalties from the sale of the .tv domain. Meeting the needs of the 2013/14 budget of the Tuvaluan Government will require drawing from funds held in the “B Account” of the Tuvalu Trust Fund.
  Government revenues largely come from sales of stamps and coins, fishing licences, income from the Tuvalu Ship Registry, income from the TTF, and from the lease of its highly fortuitous .tv Internet Top Level Domain (TLD). VeriSign, Inc manages the .tv domain with the agreement running until 2021. Commercial businesses consider "tv" to be the most recognisable letters in the world and significant for representing how consumers will use the Internet in the future.  Major League Baseball created MLB.tv to stream games. Other businesses have sought out .tv domain names due to the relative difficulty of creating a brand in the crowded .com space. Under Verisign pays Tuvalu around US $5 million per year for the right to administer .tv. Tuvalu earns about 1/12th of its annual gross national income (GNI) the agreement with Verisign. The success of Twitch.tv and other esports and video game platforms means that Tuvalu can expect to derive increased revenue following 2020, when it either renegotiates the agreement with VeriSign or signs an agreement with another company engaged in domain name registration.
  Fishing licences are an important source of revenue. The fishing in the 900,000 km² of water area mainly consists of Skipjack Tuna, Yellowfin Tuna and Bigeye Tuna. Payments from US government made under the South Pacific Tuna Treaty (SPTT) was about $9 million in 1999. In May 2013 representatives from the United States and the Pacific Islands countries agreed to sign interim arrangement documents to extend the Multilateral Fisheries Treaty (which encompasses the South Pacific Tuna Treaty) to confirm access to the fisheries in the Western and Central Pacific for US tuna boats for 18 months. In 2015 Tuvalu has refused to sell fishing days to certain nations and fleets that have blocked Tuvaluan initiatives to develop and sustain their own fishery. In 2016 Dr Puakena Boreham, the Minister of Natural Resources, drew attention to Article 30 of the WCPF Convention, which describes the collective obligation of members to consider the disproportionate burden that management measures might place on small-island developing states.
  The Asian Development Bank described the Global Economic Crisis (GEC) as impacting on Tuvalu through: “(i) lower demand for Tuvalu seafarers and, therefore, falling remittances; (ii) volatile exchange rate movements affecting the value of remittances, revenues from fishing licence fees, and food prices; and (iii) lower market value of the Tuvalu Trust Fund (TTF), which at the end of May 2010 was about 12% below the maintained value. Thus, as a direct result of the GEC, no distribution was made from the fund to the budget for 2010 and further distributions are unlikely while there is uncertainty in international financial markets.”
  The IMF 2010 Country Report describes economic activity in Tuvalu as dampened by lower offshore earnings, with “[t]he economy is expected to have almost no growth in 2010, and growth is projected to be zero or even turn negative in 2011, led by lower government spending, and remain low over the medium term.”
  The IMF 2014 Country Report noted that real GDP growth had been volatile averaging only 1 percent in the past decade. The 2014 Country Report describes economic growth prospects as generally positive as the result of large revenues from fishing licenses, together with substantial foreign aid, "while, over the  medium to long run, growth prospects may
caption: Government office building in Funafuti
exif: {"Image Make": "Canon", "Image Model": "Canon EOS 1100D", "Image Orientation": "Horizontal (normal)", "Image XResolution": "72", "Image YResolution": "72", "Image ResolutionUnit": "Pixels/Inch", "Image DateTime": "2012:09:12 16:23:37", "Image Artist": "", "Image YCbCrPositioning": "Co-sited", "Image Copyright": "", "Image ExifOffset": "348", "Thumbnail Compression": "JPEG (old-style)", "Thumbnail XResolution": "72", "Thumbnail YResolution": "72", "Thumbnail ResolutionUnit": "Pixels/Inch", "Thumbnail JPEGInterchangeFormat": "9040", "Thumbnail JPEGInterchangeFormatLength": "15344", "EXIF ExposureTime": "1/200", "EXIF FNumber": "13", "EXIF ExposureProgram": "Program Normal", "EXIF ISOSpeedRatings": "800", "EXIF SensitivityType": "Recommended Exposure Index", "EXIF RecommendedExposureIndex": "800", "EXIF ExifVersion": "0230", "EXIF DateTimeOriginal": "2012:09:12 16:23:37", "EXIF DateTimeDigitized": "2012:09:12 16:23:37", "EXIF ComponentsConfiguration": "YCbCr", "EXIF ShutterSpeedValue": "61/8", "EXIF ApertureValue": "59/8", "EXIF ExposureBiasValue": "0", "EXIF MeteringMode": "Pattern", "EXIF Flash": "Flash fired, compulsory flash mode", "EXIF FocalLength": "18", "EXIF SubSecTime": "89", "EXIF SubSecTimeOriginal": "89", "EXIF SubSecTimeDigitized": "89", "EXIF FlashPixVersion": "0100", "EXIF ColorSpace": "sRGB", "EXIF ExifImageWidth": "4272", "EXIF ExifImageLength": "2848", "Interoperability InteroperabilityIndex": "R98", "Interoperability InteroperabilityVersion": "[48, 49, 48, 48]", "EXIF InteroperabilityOffset": "8720", "EXIF FocalPlaneXResolution": "854400/181", "EXIF FocalPlaneYResolution": "569600/119", "EXIF FocalPlaneResolutionUnit": "2", "EXIF CustomRendered": "Normal", "EXIF ExposureMode": "Auto Exposure", "EXIF WhiteBalance": "Auto", "EXIF SceneCaptureType": "Standard", "EXIF CameraOwnerName": "", "EXIF BodySerialNumber": "030765040719", "EXIF LensSpecification": "[18, 55, 0/0, 0/0]", "EXIF LensModel": "EF-S18-55mm f/3.5-5.6 IS II", "EXIF LensSerialNumber": "0000603009"}