Australia and Tonga have signed a landmark AUD85 million (TOP125 million) budget support program, marking the largest investment in their partnership’s history.
Announced after Tonga’s National Development Summit last week, the four-year agreement aims to strengthen Tonga’s economy and its national budget as the country works toward long-term resilience.
Prime Minister Dr ‘Aisake Valu Eke praised the deal as a major step forward.
“This new support is delivering the ambition we have for our relationship in the spirit of kaungame’a falala’anga,” he said. “It’s helping us to provide services and more opportunities to all Tongans across all islands, as well as implement reforms that will improve the efficiency of our public administration.”
Dr Eke emphasized that budget support enables Tonga to retain full sovereignty while driving its own economic progress.
Australia’s High Commissioner to Tonga, His Excellency Brek Batley, acknowledged Tonga’s economic challenges, particularly post-disaster recovery and debt repayments until 2029.
“Our assistance will directly support Tonga’s leadership and national priorities,” he said. “It reflects our partnership founded on mutual respect and a shared outlook on our region’s security.”
The funds will be provided based on performance against policy reform priorities, aligning with the Joint Policy Reform Matrix. This builds on Australia’s AUD142 million direct financing to Tonga since 2020, which has supported budget stability and new initiatives, including infrastructure and renewable energy.
