By Katalina Siasau
Tonga’s biggest ever budget of $992.8 million for the 2025-26 financial year was presented by the Prime Minister, Hon. Dr 'Aisake Eke, to Parliament today, 3 June.
The total budget estimate for the coming year 2025-26 includes $748.9 million in cash and $243.9 million in in-kind assistance from development partners.
Addressing the House this morning, Hon. Dr Eke said that his proposed budget addresses key priorities outlined in His Majesty's address to the Legislative Assembly in Parliament, as well as the outcomes of the National Development Summit held in March and the strategic plans of Government Ministries. It also aims to tackle current economic and social challenges facing Tonga, as well as other areas of concern.
"We believe this proposed budget can address these challenges and enable the implementation of our outlined plans."
The Prime Minister saidt the theme of this budget is focused on enhancing Tonga’s economic potential and for the prosperity of its people.
$29.1 million deficit
The estimated recurrent expenditure for 2025/26 exceeds the recurrent revenue, leading to an anticipated budget deficit of $29.1 million.
This deficit is primarily due to the financing of significant infrastructure projects and will be offset by issuing $30 million in local currency bonds, which will contribute to the private sector, the Prime Minister said.
Summarising the budget, the PM emphasized the importance of climate resilience, including the budget allocation for the construction of the Fanga’uta Lagoon Bridge, connecting Ma’ufanga to Folaha, with support from the Asian Development Bank. He said the bridge will help effective movements of people in evacuation routes in times of natural disaster, and in the meantime, addresses traffic congestion.
Health
The PM said $10 million is allocated to building health centers in districts and villages throughout Tonga.
A total of $7.0 million is allocated for the construction of the Prince Ngu Hospital in Vava'u, and $6.5 million for the construction of the new Queen Salote Nursing School.
Education
On education, PM noted $10 million in Tonga Development Bank (TDB) loans at 3% interest for non-government schools.
He said $4.5 million is allocated as student loans, available for students pursuing higher education, both in Tonga and overseas.
In the parliamentary proceedings today, the Legislative Assembly passed the first reading of the 2025/26 Appropriation Bill 2025. The Bill encompasses the Government’s budget estimates for the period starting on 1 July 2025, and concluding on 30 June, 2026.
The House was adjourned until 2:00pm tomorrow, 4 June.
Last year the National Annual Budget amounted to $899.2 million pa’anga for the financial year 2024-2025.
