Tonga First Inclusive Growth Development Policy Operation

closed

Closed

The development objective of the First Inclusive Growth Development Policy Operation Program Project for Tonga is to: (i) support fiscal resilience by means of strengthened revenue mobilization and strategic fiscal and debt policies; (ii) pursue inclusiveness and government accountability by improving compliance with public procurement regulations, improving budgetary classifications, improving the adequacy of responses to external audit, and introducing new regulatory frameworks into selected sectors; and (iii) support a more dynamic and inclusive economy by adopting investor-friendly foreign investment legislation, extending coverage of the credit bureau, and improving oversight and private participation in public enterprises. This operation is the first in a new programmatic series of three operations to build fiscal resilience, support accountability, and promote inclusive growth in Tonga. The operation will consist of a United States (U.S.) 1.0 million equivalent credit and U.S. 1.0 million dollar equivalent grant. This operation will support the achievement of the twin goals by strengthening the inclusivity of growth to support shared prosperity, and improving economic prospects for women and vulnerable groups. Supported reforms will improve fiscal resilience, support a modern and accountable state, and support a more dynamic and inclusive economy. The operation carries substantial risk due to thin capacity in the public sector and vulnerability to external economic shocks and natural disasters. The World Bank, coordinated with other development partners, intends to continue its close economic and fiscal dialogue in support of reform as a primary means of managing risks related to limited capacity, and is also engaged at a policy and operational level to support Tonga to manage disaster risks.

FY17 - Public Administration

World Bank Group

Project

Government