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.