Press release
Australia and Tonga have agreed to an AUD85 million (TOP125 million) budget support program over the next four years to support a stronger economy and national budget.
This is the largest investment in our partnership’s history. It builds on closer ties developed over recent years and is timely after last week’s National Development Summit. It helps answer the call for accelerated action to support Tonga’s development ambitions.
Prime Minister Dr ‘Aisake Valu Eke acknowledged Tonga’s strong and growing bilateralrelationship with Australia.
“This new support is delivering the ambition we have for our relationship in the spirit of kaungame’a falala’anga.
It’s helping us to provide services and more opportunities to all Tongans across all islands, as well as implement reforms that will improve the efficiency of
our public administration.”
“Budget support allows us to be in the driver’s seat and maintain our sovereignty as we
navigate a path towards economic resilience.”
This announcement reflects the strategic trust in the bilateral partnership, including a shared commitment to Pacific-led approaches to regional prosperity and stability.
Australia’s High Commissioner to Tonga, His Excellency Brek Batley said that “Australia recognises that Tonga is on a difficult path to recover fully from the economic shocks of recent disasters while also managing significant debt repayments until 2029.”
“Our assistance will directly support Tonga’s leadership and national priorities. It reflects ourpartnership founded on mutual respect and a shared outlook on our region’s security.”
Funds will be provided on the basis of performance against jointly determined policy reformpriorities, including those identified in the Joint Policy Reform Matrix between the Tongan Government and development partners. It will support and be based on continued prudent
fiscal management by the Government of Tonga.
This funding builds on Australian direct financing to the Government of Tonga of more than AUD142 million since 2020 to stabilise the budget and support the Government to deliver new initiatives such as social infrastructure upgrades and renewable energy access. It is in
addition to Australia’s annual development budget to Tonga.
