The Fiji Revenue and Customs Service is forecasting over $3 billion in revenue for the current financial year. For the 2024-2025 Budget, the Ministry of Finance anticipates collecting $3.3 billion in revenue, with non-tax revenue collections budgeted at $618 million.
Deputy Prime Minister and Minister for Finance Professor Biman Prasad stated that the Government’s expenditure mix is approximately 73 percent towards operating spending and 27 percent for capital. Prof Prasad highlighted that the budget deficit of 4.5 percent of GDP is significantly lower than the double-digit fiscal deficits experienced before the Coalition Government was established in 2022.
The Government has intentionally increased Fiji’s fiscal deficit from the targeted 3.5 percent of GDP outlined in an earlier fiscal strategy. Prof Prasad explained that this move aims to provide additional fiscal impetus to counter economic slowdown and stimulate economic activity. While maintaining a fiscal deficit of 4.5 percent of GDP, the Government continues to reduce the debt-to-GDP ratio.
The Ministry of Finance has set a target, based on Fiji’s 15-year fiscal framework, to achieve a debt-to-GDP ratio of close to 60 percent by 2040. Prof Prasad added that Fiji could potentially accomplish this goal faster if the country can maintain a growth rate higher than three percent.