In Tonga, the fiscal position has strengthened but vulnerabilities remain. Directors have welcomed Tongaas recovery from the global crisis but noted remaining vulnerabilities and a high debt burden. With downside risks clouding the outlook, Directors have emphasized the importance of strengthening policy buffers and the foundation for faster and more inclusive growth. Directors have also encouraged the authorities to implement their fiscal plans within a medium-term framework and to improve further the quality of public spending to meet Tongaas development objectives.Cash grants are projected to peak in 2012/13 and remain constant in nominal terms at the level of 2013/14 thereafter. The higher level of grants largely explains the more favorable external current account and primary fiscal balance ... reflect a more front-loaded drawdown of the China EXIM Bank loans and the appreciation of the exchange rate over the last year. ... of existing tax concessions and exemptions, and introduction of a presumptive tax regime for SMEsacontributing to aanbsp;...
|Author||:||International Monetary Fund|
|Publisher||:||International Monetary Fund - 2012-07-09|