The Fiji Revenue and Customs Service projects exceeding $3 billion in revenue for the ongoing fiscal year. The Ministry of Finance hopes to accumulate $3.3 billion in revenue for the 2024-2025 budget, with non-tax revenue expected to be around $618 million.
Deputy Prime Minister and Minister for Finance Professor Biman Prasad has declared that about 73% of the government’s spending will go towards operating expenditures, with the remaining 27% allocated for capital. He also noted that the budget deficit of 4.5% of GDP is significantly less than the double-digit fiscal deficits seen before the Coalition Government took office in 2022.
Professor Prasad revealed that the government decided to raise Fiji’s fiscal deficit from the initially planned 3.5% of GDP. This decision is part of an overall effort to stimulate economic activity and combat the current slowdown. He acknowledged the importance of funding major expenditure projects promptly, despite a fiscal deficit of 4.5%.
Despite the deficit, he emphasized the continued reduction in the debt-to-GDP ratio. Based on Fiji’s 15-year fiscal plan, the government targets a debt-to-GDP ratio near 60% by 2040. Professor Prasad believes that Fiji can attain this goal more swiftly if it can secure a growth rate exceeding 3%.