The Fiji Revenue and Customs Service anticipates generating over $3 billion in revenue for the current financial year. For the 2024-2025 Budget, the Ministry of Finance projects revenue collections of $3.3 billion, with non-tax revenue budgeted at $618 million.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, stated that the Government’s budget allocation comprises approximately 73 percent for operating expenses and 27 percent for capital expenditure.
Professor Prasad noted that the budget deficit is at 4.5 percent of GDP, significantly lower than the double-digit fiscal deficits experienced before the Coalition Government took office in 2022. The Government has opted to increase Fiji’s fiscal deficit from the initially targeted 3.5 percent of GDP to provide additional fiscal stimulus to combat the economic slowdown.
“There is a need to provide some additional fiscal impetus to counter some of the economic slowdown confronting us. This increase in expenditure response is needed to reverse the trend in our growth by stimulating economic activity,” said Professor Prasad.
He emphasized that some of the significant expenditure initiatives could not be postponed. Despite a fiscal deficit of 4.5 percent of GDP, the Government remains committed to reducing the debt-to-GDP ratio. The Ministry of Finance has outlined a 15-year fiscal framework targeting a debt-to-GDP ratio of around 60 percent by 2040.
Professor Prasad added that Fiji could achieve this target much faster by maintaining a growth rate higher than three percent.