The government is taking measures to address the national debt, focusing on reducing it as a percentage of the country’s overall production rather than just the total amount. According to provisional financial results for the fiscal year ending July 2024 released this week by the Ministry of Finance, the total debt reached $10.309 billion at the end of July 2024, which is 78.3 percent of the Gross Domestic Product (GDP).
The ministry noted, “Government debt has successfully decreased from 90.6 percent in FY2021-2022 to 82.0 percent in FY2022-2023 and further to 78.3 percent of GDP at the end of FY2023-2024.”
Shiri Gounder, the Permanent Secretary for Finance, emphasized that enhancing fiscal and debt sustainability remains a top government priority. He remarked, “In FY2023-2024, we have established a solid path for fiscal consolidation through a blend of carefully designed revenue reforms and expenditure policies along with the robust economic recovery.”
Gounder stated that Fiji’s economy is thriving, supported by strong performances in key sectors such as tourism and resource-based industries, as well as boosting business confidence following the announcement of the FY2024-2025 National Budget.
Additionally, the government recorded a net deficit of $443.6 million, which is -3.4 percent of GDP, an improvement compared to the $639.1 million, or -4.8 percent of GDP, projected in the national budget in June 2023.
Total revenue for the period was reported at $3.645 billion, exceeding the revised forecast by $68.3 million due to higher-than-expected tax and non-tax revenue collections. The Ministry noted that this figure represents an increase of $896.1 million, or 32.6 percent, compared to the previous financial year (FY2022-2023).