MANILA, PHILIPPINES (23 October 2025) — The Asian Development Bank (ADB) has approved a $10 million policy-based grant to help enhance public sector management and social and economic resilience in Tonga.

The Improving Economic Management Program (Subprogram 2) builds on earlier reform efforts and supports institutional measures to strengthen debt and revenue management, reduce revenue leakages, and ensure fiscal information is more transparent and accessible to the public. It also expands coverage of the government’s social protection program, including making it more responsive to disasters and emergencies, particularly for women and girls and vulnerable households.

“These reforms will help drive Tonga’s economy toward a more sustainable fiscal path,” said the Regional Director of ADB’s Pacific Subregional Office Aaron Batten. “Enhanced quality of life for the people of Tonga is the ultimate impact of the program.”

The $10 million grant is funded through ADB’s Asian Development Fund, while the governments of Australia and New Zealand, along with the World Bank, are providing parallel cofinancing. 

Policy-based grants are extended to countries facing a financing gap in their annual budget for general development expenditures. Instead of paying for explicit project costs, the funds are transferred to the government’s general budget upon completion of policy reforms or actions that have been agreed with ADB.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.