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Finance & National Planning

The Ministry of finance and National Planning is the central institution within the economic and financial landscape of the Kingdom. For this reason the Ministry has a constant obligation to carefully consider the economic and financial needs of the country and provide Government with sound advice after considering all possible alternatives within the common confines of a limited resourced environment.  The ministry is guided by its vision, mission and values.

Vision

To improve the livelihood of the people of Tonga by developing sound fiscal and macroeconomic policies.

MISSION

To provide professional financial, economic, and national planning advice to Government and key stakeholders on efficient and effective utilization of resources.

ORGANIZATIONAL STRUCTURE:

Hon. Dr. 'Aisake Valu Eke - Minister for finance and National Planning

Mr. Tatafu Moeaki - Chief Executive Officer for finance and National Palnning

FUNCTIONS:

Listed are some of the services provided by the Ministry:

  • Salary: The ministry prepares and distributes government salary payments, as well as related employee and employer contributions to the retirement fund Board on a fortnightly basis.  The ministry ensures that salary payments are not only timely but complies with related established government policies and procedures regarding salary payments of any kind.
  • Payment: The ministry also processes all payments for government spending.  For more information on this, please refer to our Payment page for more comprehensive explanation on how government expenditure is processed and paid out.
  • Procurement: There is a Central Procurement Office within the ministry.  All major purchases or hiring of consultants by government are required to go through the Procurement Office to ensure that they meet the requirements.  world bank is currently funding a Public Procurement Reform Project for finalizing the Procurement Bill, Regulations, Manual and Standard Documents which have been drafted.

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CONTACT INFORMATION:

For more information, please contact:

  • Postal Address: P.O. Box 87, Nuku'alofa, Tonga
  • Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • phone (676) 23 066 Fax: (676) 24 040
  • Website: www.finance.gov.to
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Preliminary conclusions of the IMF mission to Tonga

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31 March, 2011. Tonga's economy is set for a modest revival, with an estimated GDP growth of 1.25 percent this financial year, according to International Monetary Fund (IMF) experts.

Senior Economist at the IMF's Asia and Pacific Department Mr Papa M'b. P. N'Diaye, along with fellow economists Ms Nan Geng and Mr Justin Matz presented their preliminary findings from the 2011 Article IV Consultation discussions with Tonga at the Ministry of Finance and National Planning on Tuesday 29th March.

Mr N'Diaye said the growth projected for FY 2010/2011 is due to stronger tourism activity and pro-growth fiscal policy supported by donor aid and previously contracted loans.

Remittance inflows have also stabilised in recent months.

However, he added that this growth momentum "will likely be limited" due to tough lending standards from banks after the rise of nonperforming loans in the past two years.

Mr N'Diaye added that the IMF predicts another upcoming year of positive GDP growth, reaching 1.75 percent.

"Looking ahead, activity is expected to strengthen further in the 2011/2012 financial year but the risks are tilted to the downside," he said.

The growth is expected from strong construction activity - such as renovation work taking place at the Vuna Wharf, the Nuku'alofa CBD and various road projects - as well as increased tourism and remittance inflows as the world recovers from the global economic crisis.

But risks remain high due to external factors such as a weaker global economy and high commodity prices.

Locally, Tonga is also at threatened by high debt distress, leaving it vulnerable to shocks, including natural disasters.

At the same time, while much of construction activity is tied to loans from China's EXIM Bank, long term benefits are expected from the investment.

The IMF findings recommended that Government avoid new borrowing, reduce current spending, improve tax administration and promote transparency. The report also urged more private sector activity - already a key objective in the Government's National Strategic Planning Framework.

The IMF consultations were held with staff of the National Reserve Bank of Tonga, government officials, and private sector representatives.

For the full report of Tonga Preliminary Conclusions of the IMF Mission

ENDS.

Issued by the: Ministry of Informations and Communications, 2011.

 
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