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The Tongan Government has released a draft budget for the 2024/25 fiscal year, totaling $899.2 million. The theme of the budget is “Laying the foundations for industry-driven economic growth and sustainability”, highlighting the government’s dedication to economic stability, social welfare and sustainable growth.
This is the first balanced budget proposed since 2019/20, underscoring the government’s commitment to macroeconomic stability. Funding includes $452.3 million from government recurrent funds and $446.9 million from development partners. Notably, no new domestic taxes are proposed for the 2024/25 fiscal year.
The budget focuses on the Ministry of Health and the Ministry of Education, reflecting their priority. Initiatives include the expansion of inclusive education to the outer islands, a new hospital in Vava’u, new facilities for the Queen Salote Nursing School and the National Museum at the National University of Tonga.
Further support for the population includes a 10% increase in grants to non-government secondary schools, technical and vocational schools, and a 10% increase in monthly allowances for the elderly and people with disabilities. Eligibility for these allowances will be expanded in stages, from 67 in fiscal year 2024/25, to 65 in fiscal year 2026, and to 63 in fiscal year 2027.
To counter inflation, the government plans to adjust the cost-of-living allowance (COLA) for civil servants by 5% starting July 2024, following a 5% increase in January 2024. The additional pay package will focus on retaining skilled teachers, nurses and doctors.
The government has allocated $5 million to combat illegal drugs.
The budget also allocates $9.1 million to support new public-private partnership (PPP) investments aimed at sustaining development activities, strengthening national security and overall social well-being.
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