The Asian Development Bank (ADB) has approved a $10 million policy-based grant to strengthen public sector management and improve social and economic resilience in Tonga. The funding supports the Improving Economic Management Program (Subprogram 2), which builds on previous reform initiatives aimed at enhancing fiscal stability and governance in the country.
The program focuses on reinforcing institutional measures to strengthen debt and revenue management, minimize revenue leakages, and improve fiscal transparency by making financial information more accessible to the public. It also aims to expand and enhance the government’s social protection programs, ensuring they are more inclusive and responsive to disasters and emergencies—particularly benefiting women, girls, and vulnerable households.
According to Aaron Batten, Regional Director of ADB’s Pacific Subregional Office, these reforms will help guide Tonga toward a more sustainable fiscal path, ultimately improving the quality of life for its citizens. The grant is financed through ADB’s Asian Development Fund, with additional cofinancing from the governments of Australia and New Zealand, and the World Bank.
Policy-based grants like this one address financing gaps in national budgets by providing general development funding upon the completion of agreed policy actions or reforms, rather than targeting specific projects.
ADB continues to play a leading role in promoting inclusive, resilient, and sustainable growth across Asia and the Pacific. Through innovative financial tools and strategic partnerships, the Bank works with its 69 member countries to address complex development challenges, build quality infrastructure, and advance sustainable economic progress.
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