Debate on the national budget was adjourned to Monday 19th June, but there are already a number of issues that are concerning, at least to most of the people’s representatives, and some of the nobles’ representatives in the House.
This year’s national budget is a record high of $784.2 million pa’anga, with $419.5 million expected to come from government funds, and the remaining $364.7 million to come from overseas development partners.
This was the announcement made by the Minister of Finance, Hon. Tiofilusi Tiueti in Parliament last week as he introduced the budget.
He also said there would be a $27.2 million deficit in this budget for the financial year 2023/2024.
The budget needs to be passed before the end of the current financial year on 30th of June. It is a priority for the House to pass the budget before the beginning of the new financial year on July 1st.
Some Concerns
As the budget debate continues in Parliament, there are seven government ministries and entities that have not yet released their 2021/2022 Annual Reports to Parliament; five of those are under the Prime Minister, including the Prime Minister’s Office.
Normally this is something that is done before the budget comes into Parliament for debate. The question looms as to how can members debate the budget sufficiently if reports that reveal how much is needed by each department have not been submitted? How they have managed their estimates from the previous budget is still yet to be reported.
The House still awaits Annual Reports from MEIDECC, Prime Minister’s Office, Fire Brigade, Public Enterprises, Ministry of Health, Ministry of Education and Training, and the Ministry of Police.
There are also concerns in the House on the government money that have been paid out on two settlements out of Court. One is the settlement with the Kacific Broadband Satellites Group; and the other is the settlement for Tonga’s cancellation of its hosting of the 2019 Pacific Games.
These are large confidential pay outs from the government coffers, making the late release of the seven ministries and entities a great concern for People’s and Nobles’ Representatives in the House.
Payment of debt to Exim Bank and Anti-corruption Commission
It was revealed in the introduction of the budget in the House that there is provision in the new budget for the government to start paying back on the loan from the Exim Bank of China. This was a loan for the reconstruction of the Nuku’alofa CBD damaged by the riots that took place in November 16, 2006.
There is also provision in the new budget for the establishment of an Anti-corruption Commission, something that was approved since 2012, but awaited funding.