The Australian government has pledged approximately $87 million in grant funding to Fiji. The funding commitment was formalized yesterday with the signing of official documents by Fiji’s Deputy Prime Minister and Minister for Finance, Biman Prasad, and the Australian High Commissioner to Fiji, Ewen McDonald.
During a media conference after the signing, Professor Prasad explained that the funding is part of Australia’s budget support program aimed at sustainably financing Fiji’s development goals. He highlighted that this program, reinforced by the renewal of the Vuvale partnership in October 2023, assists Fiji in funding critical infrastructure, health and education services, climate change initiatives, and support for vulnerable groups.
For the 2023-2024 fiscal year, Australia’s support focuses on enhancing public financial management and fostering economic reforms to boost recovery and resilience. Professor Prasad expressed that both the Fijian and Australian governments, along with other development partners, agree that sustainable economic growth and effective public financial management systems are vital for stability, prosperity, and the provision of services to vulnerable populations.
He mentioned that over the years, Fiji has received more than $580 million from the Australian Government. This sum includes the current budget support grant and contributions to social infrastructure programs, hospital rehabilitation, cyclone recovery, rural electrification, and direct support from Australian universities and institutions.
Over the past five fiscal years, Fiji has enacted comprehensive reforms with the aid of 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, Australia, New Zealand, the European Union, and contributions from the Asian Infrastructure Investment Bank and the Japan International Cooperation Agency.