The Australian government has allocated approximately $87 million in grant funding to Fiji.
The official documents for this funding commitment were signed yesterday by Fiji’s Deputy Prime Minister and Minister for Finance Biman Prasad, and Australian High Commissioner to Fiji Ewen McDonald.
At a media conference following the signing, Prof Prasad stated that the funding is a part of Australia’s budget support program designed to sustainably finance Fiji’s development goals.
“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 goals, including critical infrastructure, health and education services, climate change initiatives, and support for vulnerable populations,” he said.
Australia’s support for the 2023-2024 fiscal year emphasizes improving public financial management and fostering economic reforms to bolster recovery and resilience.
“The Fiji Government shares the same views as the Australian Government and other development partners, recognizing that sustainable economic growth and efficient public financial management systems are crucial for stability, prosperity, and service delivery to vulnerable groups,” Prof Prasad stated.
He noted that the Fiji Government has received more than $580 million from the Australian Government over the years, including the current budget support grant. This funding encompasses contributions to social infrastructure programs, hospital rehabilitation, cyclone recovery, rural electrification, and direct support from Australian universities and institutions.
Prof Prasad added that in the past five fiscal years, Fiji has undertaken comprehensive reforms with development partners to enhance 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, the European Union, as well as contributions from the Asian Infrastructure Investment Bank (AIIB) and the Japan International Cooperation Agency (JICA).