Fiji’s debt-to-GDP ratio is expected to decline further to approximately 77.8 percent by July of this year, according to the Acting Prime Minister and Minister for Finance, Professor Biman Prasad. This marks a significant drop from the debt-to-GDP ratio of 90.7 percent recorded in the 2021-2022 financial year and 79.4 percent in the last fiscal year.
The reduction in the debt-to-GDP ratio is primarily attributed to Fiji’s robust economic recovery, which has seen a resurgence in Gross Domestic Product levels. The Coalition Government’s strong commitment to fiscal consolidation has also played a crucial role, lowering fiscal deficits from a high of seven percent to between four and 4.5 percent.
Prasad emphasized that prudent fiscal management is a key focus for the government. He highlighted ongoing tax reforms aimed at enhancing revenue generation, while future fiscal discipline will prioritize rationalizing expenditures, improving public sector efficiency, and focusing on high-impact projects. This aligns with the government’s 15-year fiscal framework, which aims to lower Fiji’s debt ratio to 60 percent of GDP.
In the broader context, recent data indicates that total national debt in Fiji reached $10.309 billion by the end of July 2024, representing 78.3 percent of GDP. This reflects a trend of decreasing debt from 90.6 percent in FY2021-2022 to 82.0 percent in FY2022-2023, and now to 78.3 percent.
The government has also reported a net deficit of $443.6 million, which is -3.4 percent of GDP, a reduction from the -4.8 percent projected earlier. Total revenue for the year reached $3.645 billion, surpassing revised forecasts by $68.3 million, showcasing a 32.6 percent increase compared to the previous fiscal year.
This positive fiscal trajectory underlines the Coalition Government’s commitment to long-term sustainability and economic resilience, balancing fiscal prudence with growth efforts. The emphasis on boosting revenue and managing expenditures effectively reflects a strategic approach toward ensuring a stable and promising economic future for Fiji.
Overall, the signs of recovery and financial discipline highlight a hopeful outlook for Fiji’s economy, showing that with sustained efforts and strategic planning, the country can work towards achieving its long-term fiscal goals.
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