By Katalina Siasau
The Ministry of Finance has received the largest allocation in the 2025-26 budget, amounting to $241.6 million, which is 23% of the total funds.
Following Finance, the Ministry of Infrastructure was allocated $130.4 million (13%), the Ministry of Education and Training - $116.3 million (11%), the Ministry of Health - $97.1 million (9%), and MEIDECC - $51.8 million (5%).
The top five ministries with the most significant budget increases, compared to the original estimates for last year 2024/25 (figure 4), includes the Ministry of Fisheries, the Ministry of Agriculture, Food, and Forest, the Ministry of Revenue & Customs, the Ministry of the Office of the Public Service Commission, and the Ministry of Finance.
The Ministry of Fisheries shows the highest increase at 320% ($28.6 million), partly due to a $30 million in-kind development investment from the People’s Republic of China for new long-line fishing vessels.
The Ministry of Agriculture, Food and Forest has increased by 171% ($22.8 million), primarily due to $20 million in-kind development funding from People’s Republic of China for bio-gas production and $0.8 million from Australia for pack-house and butchery facilities.
The Ministry of Revenue and Customs sees a 108% increase ($12.0 million), which includes $4 million for new computer software.
The Ministry of the Office of the Public Service Commission has increased by 71% ($1.4 million), with $1 million allocated to establish a Public Training Institute.
The Ministry of Finance has increased by 58% ($88.3 million), largely due to the government general fund centralizing payments for government-wide services, such as the $56.4 million for the Economic Growth fund supporting the Private Sector Initiative.
However, the top five Ministries with the highest budget decreases (figure 5) in the 2025/26 budget compared to 2024/25 original budget estimate, includes the Ministry of Tourism, Ministry of MEIDECC, the Prime Minister’s Office, Ministry of Public Enterprises, and the Ministry of Infrastructure.
The Ministry of Tourism has the largest decrease at 35%, equivalent to $4.1 million. This decrease comes with the tourism sector recovering following El Niño weather impacts, the Covid-19 pandemic, and the HTHH eruption.
The Ministry of MEIDECC saw a significant decrease of 30%, totaling $22.0 million. This is mainly due to the scheduled completion of major projects, includes completion of the Tonga Renewable Energy Project in September 2024, of the Wind Power Station in December 2024, and of the Pacific Resilience Program in April 2026.
The Prime Minister’s Office budget decrease is 20%, amounting to $4.7 million. The reason for this decrease is unclear but may relate to the rehousing of the Tonga Digital Project to be carried out under MEIDECC instead of the Prime Minister’s Office.
The Ministry of Public Enterprises decrease by 16% or $7.0m. This is possibly due to expected improvements in dividend returns from public enterprises resulting in an increased non-tax revenue.
The Ministry of Infrastructure decrease by 12% or $17.9 million. This is mostly due to the scheduled completion of the Nuku’alofa Ports upgrade in August 2025, and internal policy adjustments being reallocated to the recurrent budget.
National allocations
In terms of geographical allocation, Tongatapu, with the highest population density, receives the largest share at 68%. This reflects its expected population growth and economic activity.
Specifically, Tongatapu is allocated $316.0 million (81.1%) for various projects including sustainable women’s entrepreneurship initiatives, infrastructure enhancements, and support programs.
The outer islands have been allocated approximately 13% of the total budget, with the largest portions going to Vava’u, Ha’apai, and ‘Eua.
Meanwhile, the Standing Committee on Finance and Public Accounts (PAC) is currently reviewing the government's $992.8 million budget for the 2025/26 financial year.
Parliament is set to reconvene next Monday 16 June to consider the PAC's committee report.
