PHOTO: Minister for Finance Dr ʻAisake Eke
The price of chicken, tinned fish and other imported food is down and the airport departure tax has gone up in Tonga’s new budget.
The government hopes the results will be longer lives for Tongans and new sports facilities for the South Pacific Games that will be used by the kingdom’s young sportsmen and women for years to come.
In announcing the budget, Finance Minister Dr Eke said the government had made the national diet a priority in an attempt to increase the kingdom’s life expectancy from an average 65 – 69 years to 70 – 75.
He said the government understood people were free to choose what food they ate, but it was the government’s responsibility to make sure people had access to healthier, cheaper, food.
Under the new budget the price of imported chicken would be reduced to only 17.5 percent increase and tinned fish would be 12.5 percent cheaper.
Dr Eke said an inquiry had found that the price of chicken had risen by 51 percent, while the retail price of tinned fish had increased by 33 percent.
He described the finding as “shocking.”
Price rises include an increase in the airport departure tax and foreign exchange charges, which will go towards the cost of preparing for the South Pacific Games in 2019.
Customs and Revenue Minister Tevita Lavemaau said Tonga had one of the lowest airport departure taxes in the South Pacific.
The government has increased the airport departure tax from TP$65 to TP$165. This is expected to bring in TP$5.5 million a year to help with new facilities and buildings to be constructed for the Games.
Hon. Lavemaau said the facilities funded by the increased airport tax would be used after the Games by Tonga’s young sportsmen and women.
New charges will be imposed on foreign exchange, from which the government expects to collect TP$2 million a year to help fund preparations for the Games
Tonga’s budget for the 2015-16 financial year will be almost TP$500 million.
The new budget has risen by TP$26.9 million from last year to TP$329,707,700.
The total amount in the budget will rise to TP$496,324,600 when an estimated TP$166,614, 900 of overseas donor funds is received.
The biggest beneficiaries in the budget are the government’s central agencies, which will receive more than TP$99 million and social services, which will receive just over TP$94 million.
The 2015-16 budget has been allocated into seven main sectors.
- Constitution which includes Palace Office, Parliament, Auditorʻs Office and Public Relation Commission has an allocation of TP$13,096,500.
- Foreign Affairs and His Majesty’s Armed Forces – TP$18,043,200.
- Central Agencies – TP$99,925,400.
- Law and Order – TP$25,092,800.
- Social services which includes Health, Education and Internal Affairs – TP$ 94,632,500.
- Trade, Tourism, Agriculture and Fisheries – TP$20,353,900.
- Infrastructure, Land and Survey, Environment and Energy – TP$58,565,100.
The main points
- The price of chicken and tinned fish is down and the airport departure tax has gone up in Tonga’s new budget.
- The government hopes the results will be longer lives for Tongans and new sports facilities for the South Pacific Games that will be used by the kingdom’s young sportsmen and women for years to come.
- The budget for the next financial year will be almost TP$500 million when overseas donor money is included.
- The biggest beneficiaries in the budget are the government’s central agencies, which will receive more than TP$99 million and social services, which will receive just over TP$94 million.
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