MEDIA RELEASE
Released By:
Downer
Australia and Tonga today signed a Performance Partnership to assist the Government of Tonga in implementing its program of essential economic and public sector reforms.
This Partnership is the first in a series of new Performance Incentives arrangements announced in the 2007-08 overseas aid budget.
In my Sir Arthur Tange Lecture on 8 August, I outlined the various ways in which Australia currently supports leaders in the Pacific who are committed to real reform.
I explained that Australia will provide additional aid funding to countries that meet agreed performance criteria. The Tonga Australia Performance Partnership is an example of this new approach.
In 2007 08, the Australian Government will provide up to $1.57 million of additional aid to the Kingdom of Tonga as it meets agreed milestones for economic policy and governance reform.
In its first year of operation, the Partnership will focus on improvements in budget processes and tax administration, including implementing a new compliance regime to support recent tax reforms.
These changes will help to ensure Tonga's budgetary stability and to direct government expenditure towards national development priorities, including health, education, infrastructure and private sector development.
Media contacts:
Malcolm Cole (Minister's Office) 02 6277 7500
AusAID (Public Affairs) 0417 680 590