HE Mr Bret Aldam, the Australian High Commissioner and Hon. Lisiate 'Akolo, Tonga's Minister of Finance

The Australian Government has given the Tongan Government a generous $8.7 million pa’anga boost to support salaries and service delivery in the health and education sectors.

Announcing the support on March 22 Australia’s High Commissioner to Tonga, HE Mr Brett Aldam said the budget support would contribute to Tonga’s efforts to build a strong and resilient economy.

Tonga’s Minister of Finance and National Planning, Hon. Lisiate ‘Akolo said the government is extremely grateful for the assistance in these critical sectors, and the Australian government's "support through a mechanism that is both supportive and responsive to the Tongan Government’s needs. This not only ensures service delivery but provides fiscal space for other Government priorities.”

Australia’s budget support is based on the progress of the Tongan Government’s reform and development challenges.

Mr Aldam said, “The use of Australia’s budget support for health and education sector salaries is in line with two other key priorities in Australia’s development assistance program to Tonga. Health and Education are current priorities in the Australia-Tonga Partnership for Development. Australia is pleased to be able to provide a further round of budget support which which recognises the Government of Tonga’s reform efforts in what remains a tough global economic environment”

Tonga currently faces big development challenges as it slowly recovers from the global economic crisis. Economic growth remains slow and since 2009 the Tongan government has had to rely on foreign aid to pay its salaries and debts.