The Australian government has allocated approximately $87 million in grant funding to Fiji. The funding commitment was formalized yesterday through the signing of official documents by Fiji’s Deputy Prime Minister and Minister for Finance Biman Prasad and Australian High Commissioner to Fiji Ewen McDonald.
During the media conference following the signing, Prof Prasad stated that the funding is part of Australia’s budget support program, designed to sustainably finance Fiji’s development plans. “Australia’s budget support program, reinforced by the renewal of the Vuvale partnership in October 2023, has enabled the Government to sustainably finance our development goals, covering critical infrastructure, health and education services, climate change initiatives, and support for vulnerable groups,” he said.
For the 2023-2024 fiscal year, Australia’s support focuses on enhancing public financial management and fostering economic reforms to bolster recovery and resilience. Prof Prasad added, “Both the Fiji and Australian governments, alongside other development partners, agree that sustainable economic growth and efficient public financial management systems are crucial for stability, prosperity, and providing services to vulnerable populations.”
Since the current financial year and including the recent grant, Fiji has received over $580 million from the Australian government. This sum encompasses the current budget support grant and contributions to social infrastructure programs, hospital rehabilitation, cyclone recovery, rural electrification, and direct support from Australian universities and institutions.
Additionally, over the past five fiscal years, Fiji has carried out extensive reforms with the aid of development partners to improve governance, public financial management, and support for state-owned enterprises and government agencies. These initiatives have been backed by over $2 billion in blended financing from various development partners, including the World Bank, Asian Development Bank (ADB), Australia, New Zealand, the European Union, the Asian Infrastructure Investment Bank (AIIB), and the Japan International Cooperation Agency (JICA).