The Australian Government has committed AUD$4million budget support to Tonga for each financial year in the next three years after signing the Performance Link Agreement with the Tongan Government today.
The agreement was signed by the Australian High Commissioner to Tonga Mr. Andrew Ford and the Minister of Revenue & Customs and Acting Minister of Finance and National Planning Tevita Lavemaau.
The assistance was part of Donor’s Harmonized Policy Reform matrix led by the World Bank, Asian Development Bank, European Commission and the Government of New Zealand as a new entrant.
Minister Lavemaau expressed the Tongan Government gratitude for the continuous support of the Australian Government.
CEO for the Ministry of Finance and National Planning Mr Tatafu Moeaki said that a total of $AUD12million will be distributed equally for the next three fiscal years.
He said the budget support was a great assistance to Tonga.
“It is a great support as this amount of money will be allocated to the government’s budget and it will be used on the usual expenses of the government like salaries and others. This is estimated to TOP$7million pa’anga in each financial year,” he said.
Mr Ford said the agreement was a symbol of the good relations between Tonga and Australia and he was very pleased to sign the agreement.
“This shows Australia’s commitment to ongoing development in Tonga as well as economic reform,” he said.
He also announced that Australia’s bilateral budget in Tonga remains unchanged and his government has confirmed that the funding will continue next year.
“It reflects Australia’s strong commitment to development and also reforming the Pacific.”
Pic: Australian High Commissioner to Tonga HE Mr. Andrew Ford and the Minister of Revenue& Customs and Acting Minister of Finance and National Planning Hon. Tevita Lavemaau signing the agreement