Ministry of Finance and National Planning:

During times of economic slowdown, the resources available to government tend to become very constrained if the Government is to manage prudently and not mortgage the future of its people. However, it remains the responsibility of government to protect the livelihood of its most vulnerable people as best it can within the limits of those resources.

Like anywhere in the world, a downturn in the economy can create pressures on the Government's social responsibility at a time when the population is facing its greatest social needs. We are also facing social changes which mean that the traditional system which has protected our vulnerable including the elderly in the past is coming under greater strain.

In recognizing of this, the Minister for Finance & National Planning, Hon. Lisiate 'Aloveita 'Akolo, and his staff have conducted a study, with the Lord Prime Minister announcing in the House that his government is proposing a Social Benefits Scheme for the Elderly to implement on the 1st September 2012. The proposed scheme is estimated to cost roughly around $1.6m based on monthly stipend of about TOP$65 for 2082 eligible inhabitants as reported in the 2006 Census under the specified age group. The estimated cost is likely to go higher contingent on the accurateness of the population of the target group age and it will be financed within the approved budget envelope for 2012-13.

In line with the proposed scheme, in July 2012, the Government of Tonga, with the support from the Asian Development Bank (ADB) and the Japan Fund for Poverty Reduction (JFPR) will begin a pilot of social services to the most vulnerable elderly in a specified pilot area on Tongatapu and the outer islands. This pilot project will allow the Government to gather lessons learned to better serve our elderly in the future.

The Ministry of Finance & National Planning, in conjunction with the Statistics Department, has started to investigate the operational feasibility, financial affordability and cultural implications of a scheme designed to fulfil government's social aim of addressing poverty/hardship and vulnerability facing our senior citizens, and creating resilience and empowering them by supporting their consumption needs. It is intended that in the early part of 2012-13, the Ministry of Finance & National Planning will also seek the assistance of Ministry of Internal Affairs in developing the analytical framework as well as seeking technical assistance from Asian Development Bank (ADB) in scoping and implementing this project. – Ministry of Finance & National Planning,  29/06/12.