From the House by Pesi Fonua

Tongan’s biggest national budget of $659.3 million Pa’anga for the 2018-19 Financial Year was passed by the Tongan Parliament before mid-night on Wednesday, 20 June.

The Minister of Finance, Hon. Pohiva Tu’I’onetoa tabled the National Budget into parliament after King Tupou VI, opened the 2018-19 Parliamentary Session on 31 May.

Debate on the Budget got off a sluggish start, not only because the Budget was incomplete when it was tabled into parliament, but there was also a petition for the House to defer its debate of the budget, while seven Cabinet Ministers, including the Prime Minister, and the accounts of their ministries are being audited by the Auditor General.

To get things moving along the Speaker decided not to defer the debate over the National Budget and for the House to propose to the Auditor General (when they debate over his Work Plan) to audit the account of these seven ministers and their Ministries.

The Cabinet Ministers and the Ministries to be audited by  the Auditor General are: The Minister for Foreign Affairs (former Minister of Education and Internal Affairs) PM Hon ‘Akilisi Pohiva; Minister for Infrastructure and Tourism Semisi Sika, Minister of Finance Pohiva Tu’i’onetoa, Minister for Education and Training Penisimani Fifita, Minister for Police, Revenue and Customs Mateni Tapueluelu, Minister for Justice Vuna Fa’otusia and Minister for Labour and Commerce Tu'i Uata.

The Minister of Finance, Hon. Pohiva Tu’I’onetoa introduced his national budget with a Budget Statement under the theme – “Langa Fakaakeake ki ha Tu’unga ‘oku Maluange – Rehabilitating to a more secure situation”.

Tonga’s $659.3 million 2018-19 National Budget, is financed from various sources, including $295.6m Government Fund, $182.5m in-kind donation and $43.5m Budget Support from aid donors.

The Government’s major expenditure is the salaries of Civil servants, at 53.6% of Tonga’s Gross Domestic Product GDP. The number of Civil Servants has increased tremendously since 2005, from 3500 to 5000.

There is also a government assistance to non government schools of $7m.

The government total loans as of June 2018 is $467.1m; overseas loans $409.8m and Internal Loans $57.4m.

The two main areas where government will focus its spending during the coming financial year are:

• Recovery from the devastation that was inflicted by Cyclone Gita on 12/13 February.
• To advance projects that had been implemented under the Tonga Strategic Development Framework II TSDF II 2015-2025.

The devastation that was inflicted by Cyclone Gita on ‘Eua and Tongatapu is estimated to be $328.8m.

He said that $107.2m has been earmarked for restructuring after Gita, and it will be implemented over three period of times between 2018 and 2021.

The allocation:

• $59.56m, for 2018-19
• $33.88m, for 2019-20
• $13.88m, for 2020-21

The Tongan Strategic Development Framework II TSDF II 2015-2025 was introduced by the former minister for Finance and National Planning ‘Aisake Eke, following the ending of the Tonga Strategic Development Framework I TSDF I in December 2014.

The theme of the TSDF II is “a progressive Tonga Supporting higher quality of life for all.”

However, when the House got into debate, and taking into consideration the submissions by the House’s Standing Committee on Finance and Public Account, there were confrontations between members of the Standing Committee and Cabinet Ministers.

There was a strong reaction from the Minister of Finance, Hon. Pohiva Tu’I’onetoa, who was also a member of the Standing Committee on Finance and Public Account to some of the submissions by the committee to either increase or to add on budget allocations.

Hon. Pohiva Tu’I’onetoa argued that the Standing Committee and the House do not have the right to change the budget, which is the responsibility of the Cabinet, the executive.

He was convinced that the Committee was trying to draft a new budget.

Tevita Lavemaau, a former minister of Finance, who has drafted a number of national budget reminded the Minister that the involvement of the Standing Committee on Finance and Public Account and the Legislative Assembly in drafting of the National Budget  “is the due process of Democracy.”

The members of the Standing Committee on Finance and Public Account were: Chairman, Tevita Lavemaau, members -Siaosi Sovaleni, Hon. Poasi Tei, Hon. Pohiva Tu’i’onetoa, Lord Nuku and Lord Vaha’i.

Tevita Lavemaau was also was concerned about the state of the Emergency Fund and questioned the Minister of Finance. Tevita said that all governments have a bank account that is kept aside for emergencies and he wanted to know the balance of Tonga's emergency fund as of June 30, 2018.

Unfortunately, the Minister of Finance Hon. Pohiva Tu’i’onetoa, was not in the House at the time, and there was no answer.

However, Cabinet and its supporters have the majority in the House and even though some of the Votes in the budget obviously lacked details and figures, they were still passed by the House.

For example on the lack of detail, Lord Nuku pointed out that under the Ministry of Police budget allocation a special programme was listed but without specific allocations. In addition, there was another item "Salaries" but there was no working programme, and there was no money specified for the fight against illegal drugs, or even details on all salaries, which were simply shown as a lump sum.

Despite the differences of opinion, the budget debate appeared to have ended on a high note when the Minister for Revenue Collection, Customs, and Minister for Police, Hon. Mateni Tapueluelu reminded the House that he was supposed to collect $12 million in revenues by the end June, but he was willing to lift the 15% duty on chicken and butter at the end of June. But but not on ice cream.

Tonga’s National Budget for 2018-19 was passed by members 20-0.