The Australian government is donating AU$12 million in the next three years to help pay the public servants salaries, a statement from the Tongan government said.

The money was part of an agreement signed in Nuku’alofa today through the Performance Link Agreement which is  part of Donor’s Harmonized Policy Reform matrix led by the World Bank, Asian Development Bank, European Commission and the Government of New Zealand.

The donation starts this year with AU$4 million and continues in the next two years with  a AU$4 million respectively.

CEO for the Ministry of Finance and National Planning Mr Tatafu Moeaki said “that a total of $AUD12million will be distributed equally for the next three fiscal years”.

Tatafu
Australian High Commissioner to Tonga HE Mr. Andrew Ford and the Minister of Revenue& Customs and Acting Minister of Finance and National Planning Hon. Tevita Lavemaau signing the agreement

“It is a great support as this amount of money will be allocated to the government’s budget and it will be used on the usual expenses of the government like salaries and others. This is estimated to TOP$7million pa’anga in each financial year,” he said.

HE Mr Andrew Ford said : “This shows Australia’s commitment to ongoing development in Tonga as well as economic reform”.

“It reflects Australia’s strong commitment to development and also reforming the Pacific.”