TONGA ECONOMIC AND PUBLIC SECTOR REFORM PROGRAM

The third iteration of DFAT's Economic and Public Sector Governance Program will support a medium term program of reforms to strengthen revenue, effectively manage government expenditure, reduce debt and promote private sector growth through performance-linked budget support and the balance technical assistance, and training, EPSG III will represent around a third of Australia's projected bilateral program funding in Tonga. Building on the outcomes of EPSG I and EPSG II, through which Australia has actively supported Tonga's reform program to reduce debt, repair its budget, improve revenue collection and promote private sector development. As well as contributing to these higher level policy reforms (by combining our policy-based budget support with similar contributions from other key development partners, led by the World Bank), Australia's contribution to EPSG II provided direct support to strengthen procurement, audit, tax compliance, customs and public financial management (PFM).