According to bank documents, "The proposed program supports policy reforms under three pillars: i) strengthen public finances; ii) enhance resilience to the effects of climate change and natural disasters; and iii) improve skills and labor mobility. To strengthen public finances, policy actions include: the adoption of new revenue services regulations to strengthen revenue compliance and collection; the introduction of a fiscal target for the cash liquidity buffer to support fiscal discipline; and the strengthening of the new public-sector remuneration framework and Performance Management System (PMS). To enhance resilience to the effects of natural disasters, this operation supports: the establishment of an overarching policy framework to enhance the quality and timeliness of future event-specific housing reconstruction programs; and a new policy to improve the management, recording and reportingof public fixed asset. To support improved skills and labor mobility, the operation supports: the adoption of a new TVET sector policy framework to support greater sectoral coordination and alignment between skills training and labor market needs; and the introduction of the nation’s first labor mobility strategy to maximize the development impact of overseas employment opportunities while mitigating the negative social effects."
Andrew Blackman, Economist
Kingdom of Tonga
Minister of Finance
Ministry of Finance
Balwyn Faotusia, Chief Executive Officer
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