The Government of Tonga has unveiled its draft budget for the fiscal year 2024/25, amounting to $899.2 million. Themed “Building the foundations for sector-driven economic growth and sustainability,” the budget underscores the government’s dedication to economic stability, social welfare, and sustainable growth.
This balanced budget is the first proposed since 2019/20, highlighting the government’s commitment to macroeconomic stability. Funding includes $452.3 million from government recurrent funds and $446.9 million from development partners. Notably, there are no new domestic taxes proposed for the fiscal year 2024/25.
Key allocations in the budget focus on the Ministry of Health and the Ministry of Education, reflecting their priority status. Initiatives include the expansion of inclusive education to outer islands, a new hospital in Vava’u, and new facilities for the Queen Salote Nursing School and the Tonga National University’s National Museum.
Further initiatives to support the populace include a 10% increase in grants to non-government secondary, technical, and vocational schools, and a 10% increase in monthly stipends for the elderly and disabled. Eligibility for these stipends will expand in stages to include those aged 67 in FY 2024/25, 65 in FY 2026, and 63 in FY 2027.
To address inflation, the government plans a 5% cost of living allowance (COLA) adjustment for civil servants starting in July 2024, following an earlier 5% increase in January 2024. Additional remuneration packages will focus on retaining skilled teachers, nurses, and doctors.
In combating illicit drugs, the government has allocated $5 million specifically for this purpose.
The budget also allocates $9.1 million to support new public-private partnership (PPP) investments aimed at ongoing development activities, national security enhancement, and overall social well-being.
