The Fiji Revenue and Customs Service forecasts revenue exceeding $3 billion for the current financial year. For the 2024-2025 Budget, the Ministry of Finance estimates revenue collection to be $3.3 billion, with an additional $618 million expected from non-tax revenue collections.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, stated that the government’s operating to capital expenditure ratio is around 73 percent for operating spending and 27 percent for capital expenditure. Professor Prasad noted that the projected budget deficit stands at 4.5 percent of GDP, significantly lower than the double-digit deficits observed before the Coalition Government came into power in 2022.
Professor Prasad explained that the government has deliberately chosen to raise Fiji’s fiscal deficit from the previously targeted 3.5 percent of GDP, as part of its fiscal strategy. He emphasized the necessity of increased expenditure to address economic slowdowns and stimulate growth. This budget aims to reverse the trend in economic growth by promoting economic activity, even though it entails a deficit of 4.5 percent of GDP.
The Ministry of Finance has detailed a 15-year fiscal framework with a goal of reducing Fiji’s debt-to-GDP ratio to nearly 60 percent by 2040. Professor Prasad added that this objective could be achieved more rapidly if Fiji can maintain a growth rate higher than three percent.