Nauru's new Government is placing an emphasis on basic education and cutting scholarships for the elite.
Ludwig Scotty was re-elected President on Tuesday following Saturday's snap general election which gave him the support of 15 of the 18 MPs.
His reformist government has already passed its Budget for the current year which the emphasis on cutting public spending.
Finance Minister David Adeang says it will restrict public sector wages, raise import duties and redirect the education budget, much of which goes on scholarships for a handful of elite students to study at exclusive Australian colleges.
"they used to take up the majority of the allocation for education but we are re-directing our resources now to providing an acceptable standard of education for our people and directing less to the few elite students"