The Department coordinates the preparation of the annual national budget, and the updating of the medium-term fiscal framework. A Macroeconomic Policy Committee, with membership from within government and the finance sector, assists with the analysis of the macroeconomic setting for the budget. Line ministries make submissions in relation to their budgets, which are guided by ceilings approved by Cabinet.

The department also undertakes economic research in macro and micro economic issues of Tuvalu and provides policy advice to the Minister of Finance and Economic Development

The Aid Coordination unit, as part of this department, ensure the effectiveness of ODA through coordination with development partners. In accordance with the Tuvalu National Aid Policy the unit also undertakes appraisals of funding proposals and maintains records of funding that us received.