as sustainable allowing the accumulation of cash revenue collection reserves to manage shocks over the medium-term World Bank’s dialogue with Government on appropriate ways to approach and manage expenditure or revenue shocks GoT does not progress key The joint reform policy matrix that public financial management or underpins Tonga's own economic economic reforms resulting in reform program that is linked to budget 2.2 further debt or poor quality support and technical assistance from Moderate Unlikely Moderate expenditure, and therefore not development partners, including meeting targets to trigger next Australia, incentivises and enables payment. Tonga to progress these reforms. Backlog of delayed acquittals Short-term technical assistance and return of funds from GoT due to poor financial system With-holding of disbursement of funds 2.3 practices and capacity results in Moderate Possible High until reporting obligations have been AusAID being unable to account met for funds and ensure funds are used as agreed Poor procurement practices due Annual sample of AusAID-funded to lack of understanding of and GoT procurements capacity to implement processes 2.4 results in AusAID being unable Moderate Possible High to ensure best value for money and could lead to corrupt practices Expenditure to priority areas is Linking of budget support to core diverted due to poor planning services sector expenditure (such as the impending loan 2.5 repayments to China) resulting The World Bank monitors the GoT’s Moderate Possible High in delays and failure to achieve budget closely and, through ongoing improvements dialogue with the GoT, helps ensure that all donor budget support/sector
as sustainable revenue collection allowing the accumulation of cash reserves to manage shocks over the medium-term World Bank’s dialogue with Government on appropriate ways to approach and manage expenditure or revenue shocks 2.2 GoT does not progress key public financial management or economic reforms resulting in further debt or poor quality expenditure, and therefore not meeting targets to trigger next payment. The joint reform policy matrix that underpins Tonga's own economic reform program that is linked to budget support and technical assistance from development partners, including Australia, incentivises and enables Tonga to progress these reforms. Moderate Unlikely Moderate 2.3 Backlog of delayed acquittals and return of funds from GoT due to poor financial system practices and capacity results in AusAID being unable to account for funds and ensure funds are used as agreed Short-term technical assistance With-holding of disbursement of funds until reporting obligations have been met Moderate Possible High 2.4 Poor procurement practices due to lack of understanding of and capacity to implement processes results in AusAID being unable to ensure best value for money and could lead to corrupt practices Annual sample of AusAID-funded GoT procurements Moderate Possible High 2.5 Expenditure to priority areas is diverted due to poor planning (such as the impending loan repayments to China) resulting in delays and failure to achieve improvements Linking of budget support to core services sector expenditure The World Bank monitors the GoT’s budget closely and, through ongoing dialogue with the GoT, helps ensure that all donor budget support/sector Moderate Possible High
tonga-economic-public-sector-governance-delivery-strategy.docx