Prime Minister and Minister of Finance Hon. Dr ‘Aisake Eke presented the budget to Parliament yesterday, highlighting a focus on economic resilience and social development.
The budget comprises $748.9 million in cash and $243.9 million in-kind assistance from donor partners.
The proposed budget addresses key priorities in concerns raised by the King when he opened the 2025–26 parliament session and from the National Development Summit held earlier this year.
A projected budget deficit of $29.1 million is anticipated, primarily due to financing significant infrastructure projects. To offset this, the government plans to issue $30 million in local currency bonds, aiming to stimulate private sector growth .
The budget’s emphasis on private sector development represents a shift from Tonga’s historically public sector-driven economy, aiming to create an environment where businesses can flourish.
This budget marks a substantial increase from the previous year’s budget of $899.2 million .
The members also passed the first reading of the 2025/26 Appropriation Bill, encompassing the government’s budget estimates for the period starting on 1 July 2025 and concluding on 30 June 2026 .
The budget will undergo further readings in Parliament before final approval.
