Government debt outstanding reached $10.8 billion at the close of October 2025, marking a modest increase of 0.5 percent from the previous quarter and a 2.3 percent rise compared to the same quarter last year. The Government Debt Report for the first quarter of the 2025–2026 financial year indicates that government debt now represents 73.8 percent of Gross Domestic Product (GDP), with projections suggesting this could rise to 79.8 percent by the end of the financial year.
The report highlights that domestic borrowing remains the dominant source of government debt, constituting 65.6 percent of the total, equating to $7.1 billion, while external debt accounts for the remaining 34.4 percent, or $3.7 billion. New borrowings in the recent quarter totaled $211.4 million, predominantly sourced from domestic markets, whereas external borrowing was notably limited.
Government debt servicing during this period reached $303.1 million, which comprises $176.2 million in principal repayments and $126.9 million in interest payments. The Ministry of Finance has noted that the burden of debt servicing continues to exert pressure on government finances.
Additionally, the report details financing agreements signed with development partners within the quarter. Noteworthy agreements include a loan and grant partnership with the Asian Development Bank for the Healthy Oceans and Water Security Improvement Project, valued at approximately $376 million, aimed at enhancing resilient water supply services and safeguarding marine ecosystems in the Greater Suva Area. Another agreement finalized with the World Bank’s International Development Association for the Pacific Healthy Islands Transformation Project, worth about $224 million, seeks to improve access to quality health services, particularly focusing on non-communicable disease management.
The Ministry of Finance emphasized that discussions are ongoing with various development partners for further concessional financing to bolster initiatives in trade facilitation, health, and agriculture. The government remains committed to managing debt responsibly while ensuring that funding channels are open for crucial development projects that will benefit the community and the economy in the long run.
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