Tonga’s budget finally passed
Nuku’alofa: Tongan’s $US293m (FJ$ 615.01m) budget for the 201819 Financial Year has finally been passed by Parliament.
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 (FJ$274.97m) Government Fund, $US81m (FJ$170.02m) in donations and $US19.3m (FJ$40.51m) in budget support from aid donors. The government’s major expenditure is the salaries of Civil servants, at nearly 54 per cent of the Gross Domestic Product. There is also a government assistance to non government schools of $US3.1m (FJ$ 6.51n). The government total loans as of June 2018 is $US207m (FJ$ 434.5m); $US181.75m (FJ$ 381.5m) of which consists of overseas loans. Mr Tu’ionetoa said a focus of the budget would be on recovering from the devastation inflicted by February’s Cyclone Gita which was estimated to exceed $US145m (FJ$ 304.35m).
He said $US47.5m (FJ$99.7m) from the budget had been specifically earmarked for cyclone recovery over the next four years.
Tonga’s Cyclone Gita Recovery Receives Significant Boost
Meanwhile the World Bank’s Board of Executive Directors approved an additional grant of $US10m (FJ$20.99m) to help Tonga’s recovery from Cyclone Gita. The money is to support reforms to strengthen the government’s finances and foster a more dynamic economy. Cyclone Gita was the strongest cyclone to hit Tonga since 1982. RNZI