The Kiribati finance minister, Tom Murdoch, says the 2014 budget comes with a tax reform to spread the burden more widely and to ensure a more sustainable and stable level of income.
Mr Murdoch says the country cannot continue to rely on the sea only, warning that the return from the fisheries fluctuates.
He says in years when the El Nino effect does not favour the fishing industry the nation suffers.
The IMF predicts that the Kiribati economy will grow at about 2.8 percent this year and next.
The drivers of this growth will be the major infrastructure projects the government has undertaken with roads, water and sanitation, and airport reconstruction.
