Tonga National Budget

A budget of $784.2 million pa’anga was passed with 14-0 votes.

The Ministry of Infrastructure received the biggest budget allocation and the Ministry of Finance and National Planning (18%), followed by the Ministry of Education and Training with 17% and a 9% allocation for both the Ministry of Health and MEIDECC.

This second budget of the current government focuses on economic recovery, greater resilience and sustainability.

The budget was voted 19-1 when it was put to the floor.

It is a deficit budget by $38.1m, compared with the current deficit budget of $59.6m.

However, the Minister of Finance, Tevita Lavemaau told the House that the Budget will be financed with $369.4 or 60% by the Government, and $249m or 40% by Tonga’s foreign development partners.

Overall, 80% or $492.5m is in cash, and 20% or $125.9m will be in the form of products, contributed by Tonga's foreign development partners.

The national budget of $618.3 million pa’anga, which is an increase of $28.7 million on the previous year was tabled in parliament on Monday.

In his address, Prime Minister Dr Pohiva Tu’i’onetoa said the national budget is more than the $589.6m National Budget of 2020-2021.

“Our trust is with God. Last year and this year, the same our trust is with God,” he proclaimed, and reminded the House that the theme of last year’s budget was “The Lord is my Refuge and my Fortress”.

During the passing of the national budget last week, the government announced that alongside the massive national road tar sealing project is the fact that there are added incentives proposed in form of a 50% import tax on imported 10 -15 years old vehicles.

The decision is expected to encourage a massive influx of imported vehicles into the country, and government will collect the taxes.

Meanwhile, the government has allocated three companies that have won $12 million pa’anga worth of road construction contracts to construct 2100 kilometres of tar-sealed roads.

The National Budget of T$589.6 million for 2020-2021 was passed unanimously by Parliament yesterday, 21- 0, over a week before the deadline on 30 June.

Its easy passage may have been due to a clear presentation by the Minister of Finance, Tevita Lavemaau. Many of the questions from the opposition for clarification and explanation were also answered adequately by the Minister.

Prime Minister, Pōhiva Tuʻiʻonetoa, proposed the pay cut in the House of Pesi and it did not survive the final stage of the National Budget debate.

The savings from the pay cut would have contributed towards Tonga’s response to the global COVID-19 pandemic.

Minister of Finance, Tevita Lavemaau congratulated members for their hard work, and reminded them that they still had one week and two days before the end of the month, 30 June, which is the end of the 2019-20 Financial Year.

Dr Saia Piukala, the Vava’u No.14 People’s representative, made the proposal during the announcing of passed $589.6 million pa‘anga National Budget for 2020-21 by the Tonga Legislative Assembly.

Most cemeteries in Tonga are located on the coastline for the convenience of getting sand to bury the dead.

Dr Piukala raised the issue of sea level rise and the need to move cemeteries further inland.

They’re having problems securing new land for cemeteries, and are still in need of a huge amount of sand for burials, so cremation appears to be the way for the future.