Tonga First Inclusive Growth Development Policy Operation

The objective of this programmatic series is to support an improved framework for inclusive growth by strengthening fiscal and public sector management, creating a more stable and conducive regulatory framework for business and ensuring a minimum level of protections, particularly for vulnerable groups. The policy areas under consideration for the proposed operation include: i) Tax policy and risk-based compliance reforms to support progressive revenue mobilization ; ii) a strategic medium-term debt management framework and fiscal anchoring system; iii) implementation of a new public sector remuneration framework to ensure adequate pay and fiscal sustainability; iv) procurement and or financial management system reform; v) regulatory reform in telecoms and utilities to support competitive practices and pricing; vi) reform to support foreign investment; vii) launch of a new program of Public Enterprise reform.