National Budget

Tonga MPs briefed on National budget 2021/2022

It is the 4th Budget Briefing and second virtual budget mission thanks to the generous support of UNDP through the New Zealand government.

In opening the workshop Tongatapu 5 MP, Hon. Losaline Ma'asi delivered the Speaker's opening speech and stressed that one of the essential roles of any parliament in the world Tonga included is to pass the national budget.

However, the budget process and documents can be highly technical, and requires extensive expertise and human resources to be tackled with, especially in terms of analysis capacity.

Tonga passes Budget with record $US26.4m deficit

The Ministry of Finance receives the biggest allocation with $73 million, while education and health get over $32 million and around $31m respectively.

The Covid-19 economic impacts have struck the kingdom as well as uncertainty over a change in government approach since the death of the late prime minister 'Akilisi Pohiva last September.

Since coming into power seven months ago Pohiva Tu'i'onetoa declared the formation of a new political grouping and selected a new cabinet.

Tonga's Budget finally passed

The Minister of Finance tabled the Budget on May 31 but debate got off a sluggish start, not only because the Budget was incomplete when it was tabled, but there was also a petition for the House to defer its debate, while seven Cabinet Ministers and the accounts of their ministries were audited.

Matangi Tonga reported Pohiva Tu'ionetoa introduced his budget under the theme, "Rehabilitating to a more secure situation".

It is financed from various sources, including a $US131m Government Fund, $US81m in donations and $US19.3m in budget support from aid donors.

Tonga, heavily indebted, lays out $263m budget

The finance minister Tevita Lavemaau said US$167 million will be government raised revenue, with the balance, US$98 million, from development partners.

RNZI reports the minister also told parliament that Tonga owes $US207 million dollars, or 52 percent of the GDP.

The bulk of this is owed to China's Exim Bank for the cost of rebuilding Nuku'alofa after the 2006 riots.

     

“Tonga to finance its $545.1 million budget” – Dr. Eke

The Finance and National Planning Minister Dr. ‘Aisake Eke had announced in Parliament in his Budget Statement last week the revenue will be collected from tax and non-tax revenue and budget support,

The rest of the seven percent which is $36 million from additional foreign donors and loan.

Of that seven percent, five percent is budget support from donors and loans for infrastructure projects from the Asian Development and the World Bank. Dr. Eke said the funding from ADB and World Bank continues on the revised 50/50 grant and loan basis rather than purely as a grant.