Economic growth of 1.7% for Tonga is the aim of the government's $225.4 million pa'anga budget for 2009-10, the Minister of Finance, Hon. Afu'alo Matoto told the Tongan Parliament on Monday, June 8.

Following a dismal 0.4% growth during the current financial year that ends on June 30 the minister stressed that a revitalized economy is the focus of his budget for the coming year.

He told the House that there will be no increase in taxes, despite a drop in the government's revenue, but by improving the efficiency of revenue collection he could avoid any reduction in ministries' votes, which might affect the quality of public services.

He said that his budget would lead to economic growth to maintain the quality of life of the people and would also create employment. It would also implement the political reform process, thereby improving the management of the affairs of the country.

Foreign aid

Hon. Matoto hoped that there would be an increase in financial assistance from Australia, New Zealand, the European Union and from the Asian Development Bank and the World Bank.

He said that some core areas where funds were allocated to advance the objective of his budget, included:

- the Constitutional and Electoral Reform Commission, and the Royal Land Commission;

- a heart surgery team to carry out heart operations;

- one million pa'anga for technical and vocational training;

- the Council for Economic Development, to encourage the growth of the private sector;

- road construction in Tongatapu and in the outer islands;

- one million pa'anga to improve life in the Niuas;

- the completion of the refurbishing of Hu'atolitoli Prison;

- the establishment of village or town councils.