2017-2018 Budget, Tonga’s biggest [1]
Friday, July 14, 2017 - 22:29
The Tongan parliament passed Tonga’s national budget of $595.8m for the 2017-2018 financial year on 29 June.
This year’s budget is Tonga’s biggest budget ever of $595.8m, more than its 2016-2017 national budget of $545.2m.
The two main components of the 2017-2018 national budget are the Total Expenditure of $595.8m and the Total Receipts of $548.2m.
There is a deficit of $48.2m or 8% of the total expenditure that is to be financed with Government Bond - $14.6m, Budget Support (credit) $10.9m and Development Fund (credit) $22.7m.
The two components of the total expenditure are the Development expenditure of $251.3m and the total Recurrent expenditure of $344.5m.
The Development Partners and their contribution to the Development Expenditure are:
- Asian Development Bank $48m,
- Council of Regional Organzation in the Pacific Agency $11.5m,
- European Union $2.5m,
- Australia $25.8m,
- Japan $30.5m,
- New Zealand $15.6m,
- Pooled Funds – Aust & NZ $2.5m,
- China $56m,
- United Nation Agencies $9.1m,
- USA $1.5m,
- World Bank $31.9m,
- Other Donors $5.9m
- Unconfirmed Donors $10.4m.
The total Receipts on hand for the new budget amounted to $548.2m.
Development Receipts, Grant $228.6m, Recurrent Receipt $285.0m, Budget Support, Grant $23.5m, and government Revolving Funds $11.1m.
The Ministry of Education receives the biggest budget allocation of $52.6m and followed by the Ministry of Health with $38.9m.
A bulk of these budget allocations will be for the salaries of staff. A total of $33.6m or 63.8% of the Ministry of Education budget allocation will be for salaries, leaving only $19.0m for operations.
From the Ministry of Health budget allocation, an estimate $26.0m or 66.6% will be for salaries, leaving only $13.0m or 33.4% for operation.
Out of the 25 recipients of government budget allocations the two with the smallest budget allocations are the Ministry of Public Enterprises with $1.6m and the Office of the Ombudsman with $1.7m.