THE New Zealand Government has become the first donor to pledge budget support to Tonga, when the New Zealand High Commissioner HE Dr Jonathan Austin and Tonga's Minister of Finance Hon Sunia Fili, signed a Letter of Intent for the provision of $3 million in Nuku'alofa today, August 3.

Dr Austin said the funds would cover the payment of police salaries for frontline staff in all six police districts in Tonga, and the salaries of teachers in Government schools in the outer islands.

"These are frontline staff serving the Tongan public and we are pleased to support the Government in ensuring there is money for them to be paid," he said.

He said that as a very close friend of Tonga, New Zealand is pleased to be the first bilateral donor to confirm budget support for this financial year.

He said New Zealand recognises the challenge faced by Tonga's new Government in trying to bridge a budget deficit resulting from the economic downturn.

New Zealand's total aid to Tonga in this financial year will exceed TOP$25 million and all aids are in the form of grants.

The Minister of Finance thanked the New Zealand Government for providing the $3 million budget support for Tonga and becoming the first donor to Tonga's Budget Support.

He also said that Australia is about to donate $3.9 million and the World Bank has pledged $8.7 million in budget support for Tonga.