Administrative costs in Nauru are met from the proceeds of phosphate sales, which are in decline as reserves approach exhaustion. In 1993, the governments of Nauru and Australia reached a US $73 million out-of-court settlement as restitution for Nauruan lands ruined by Australian phosphate mining. This payment assisted the government (which relies almost entirely on phosphate receipts for revenue) in facilitating economic diversification. The fiscal year extends from 1 July to 30 June.
The US Central Intelligence Agency (CIA) estimates that in 1995/1996 Nauru's central government took in revenues of approximately $23.4 million and had expenditures of $64.8 million. Overall, the government registered a deficit of approximately $41.4 million. External debt totaled $33.3 million.