The Asian Development Bank is providing Tonga with the second five million US dollar tranche of its Economic Support Program in response to what it says is wide-ranging economic reform in the country.
The ADB says the Tonga government has improved financial accountability in several ways.
A recently completed a Public Expenditure and Financial Accountability Assessment which reviewed the condition of Tonga's public expenditure, procurement and financial accountability systems.
The review showed that most of Tonga's public financial management system is performing at an average level or better than international best practice.
The government has also improved macroeconomic and revenue forecasting, while making credible and viable plans to meet all financial ratio targets set in last year's budget.
It has also set up an internal audit unit and prepared an operations manual for Treasury.
The ADB says all these measures should make it easier for the government to see how the economy is performing, assess its spending and manage its revenue accordingly.