The Fiji Revenue and Customs Service expects to generate over $3 billion in revenue in the current fiscal year. The Ministry of Finance has forecasted that it will collect $3.3 billion in revenue and $618 million in non-tax revenue for the 2024-2025 budget.
The Deputy Prime Minister and Finance Minister, Professor Biman Prasad stated that government expenditures are expected to be divided into 73% for operating costs and 27% for capital investments. He noted that the projected budget deficit of 4.5% of GDP is significantly lower than the double-digit deficits faced before the Coalition Government came into power in 2022.
The government has purposefully decided to escalate Fiji’s fiscal deficit from the initially targeted 3.5% of GDP, as part of an early fiscal strategy plan. The minister stated this was necessary to stimulate economic activity and counter the current economic slowdown.
Despite the increased deficit, the government continues to reduce its debt-to-GDP ratio. Based on Fiji’s fiscal framework, the government aims to achieve a debt-to-GDP ratio near 60% by 2040. If a growth rate exceeding 3% can be achieved, this target could be met more rapidly, Professor Prasad added.