Australia has given Tonga more than one million US dollars as a reward for achieving a set of economic and public sector reforms.
Tonga's Prime Minister, Dr Fred Sevele, thanked Australia, after the money was transferred to the government as part of the Tonga-Australia Performance Partnership Agreement.
The TAPPA was signed in August 2007 and is designed to encourage Tonga to implement a program of essential reforms.
A statement from the Tongan government said the first milestones focused on improvements to budget processes and tax administration.
If Tonga reaches a second set of milestones, which build on the first but focus on a more strategic approach to spending, it will receive around one point four million US dollars as part of the program.