The Australian government has pledged approximately $87 million in grant funding to support Fiji. This funding commitment was formalized yesterday through the signing of official documents by Deputy Prime Minister and Minister for Finance Biman Prasad and Australian High Commissioner to Fiji Ewen McDonald.
During a media conference following the signing, Prof. Prasad highlighted that the funding was part of Australia’s budget support program, aimed at sustainably financing Fiji’s development goals.
“The Australia’s budget support program, reinforced by the renewal of our Vuvale partnership in October 2023, has enabled the Government to sustainably finance our development ambitions, which includes critical infrastructure, support for health and education services, climate change initiatives, and aid for vulnerable populations,” Prof. Prasad stated.
For the 2023-2024 fiscal year, Australia’s support is geared towards enhancing public financial management and fostering economic reforms to boost recovery and resilience.
“The Fiji Government shares the same views as the Australian Government and other development partners on the importance of sustainable economic growth and effective public financial management systems for stability, prosperity, and service delivery to vulnerable groups,” Prof. Prasad added.
Overall, the Fiji Government has received over $580 million from the Australian Government over the years, including the current budget support grant. This amount also covers contributions to social infrastructure programs, hospital rehabilitation, cyclone recovery, rural electrification, and direct support from Australian universities and institutions.
Prof. Prasad noted that over the past five fiscal years, Fiji has undertaken numerous reforms with development partners to improve governance, public financial management, and support for state-owned enterprises and government agencies. These efforts have been backed by over $2 billion in blended financing from various development partners, including the World Bank, Asian Development Bank (ADB), Australia, New Zealand, and the European Union, as well as contributions from the Asian Infrastructure Investment Bank (AIIB) and the Japan International Cooperation Agency (JICA).