The Fiji Revenue and Customs Service anticipates more than $3 billion in revenue for the present financial year. The Ministry of Finance projects to amass $3.3 billion in revenue for the 2024-2025 budget, with non-tax revenue collections amounting to $618 million.
Deputy Prime Minister and Finance Minister, Professor Biman Prasad has indicated that the existing government expenditure is directed approximately 73% to operational spending and 27% towards capital. He asserts that the forecasted budget deficit of 4.5% of GDP is considerably less than the double-digit fiscal deficits experienced before the Coalition Government was established in 2022.
Prasad added that the government has purposely decided to expand Fiji’s fiscal deficit beyond the originally targeted 3.5% of GDP, which was integrated into the prior fiscal strategy. This decision aims to propel some level of fiscal stimulus to counteract the economic slowdown currently experienced. Such an escalation in expenditure is required to invigorate economic growth.
While accommodating significant expenditure initiatives that can’t be postponed, the government maintains a fiscal deficit of 4.5% of GDP in this budget, while still striving to decrease the debt-to-GDP ratio.
As outlined by the Ministry of Finance, the government aims to reach a debt-to-GDP ratio nearing 60% by 2040, by adhering to Fiji’s 15-year fiscal framework. Prasad believes this goal could be reached quicker with a growth rate exceeding 3%.