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Country Report Tonga Product Image

Country Report Tonga

  • ID: 2138734
  • January 2015
  • Region: Tonga
  • 17 Pages
  • The Economist Intelligence Unit

In mid-January Tonga's prime minister, Samiuela 'Akilisi Pohiva, told the local media that civil-service pay rises could jeopardise the government's operational budget.

The policy stance of the government, led by Mr Pohiva's Democratic Party of the Friendly Islands (DPFI), will gradually become clearer as the government prepares the budget for fiscal year 2015/16 (July-June), which is due to be presented to parliament in late June. However, Tonga's dependence on foreign aid limits Mr Pohiva's room for manoeuvre. This is clear from his statement that an additional increase in civil-service salaries could mean that the government's operational fund is exhausted.

This statement is significant, as in opposition the DPFI had generally supported the demands of the civil-service trade union, the Public Service Association, for higher salaries. Yet it seems that Mr Pohiva will attempt to manage public finances responsibly, and he has identified as a major problem in national finances the allocation of the majority of the budget to civil-service pay.

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Country Report Tonga

Civil-service pay rises look unlikely
Event
Analysis
Impact on the forecast

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Note: Product cover images may vary from those shown

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