The government has started to manage the national debt, focusing on its percentage relative to the country’s overall production rather than just the raw amount. According to the provisional financial results for the fiscal year ending in July 2024, released this week by the Ministry of Finance, the total debt reached $10.309 billion at the end of July 2024, which is 78.3 percent of the Gross Domestic Product (GDP).
The report noted, “Government debt has been successfully placed on a downward trend, decreasing from 90.6 percent in FY2021-2022 to 82.0 percent in FY2022-2023, and further reducing to 78.3 percent of GDP by the conclusion of FY2023-2024.”
Permanent Secretary for Finance, Shiri Gounder, emphasized that enhancing fiscal and debt sustainability continues to be a top priority for the government. “In FY2023-2024, we have solidified our approach to fiscal consolidation through well-designed revenue reforms and expenditure policies, alongside a robust economic recovery,” he remarked.
Gounder pointed out that Fiji’s economy is thriving due to positive developments in essential sectors such as tourism and other resource-based industries, along with improved business confidence following the release of the FY2024-2025 National Budget.
Additionally, the government recorded a net deficit of $443.6 million, or -3.4 percent of GDP, which is significantly lower than the $639.1 million or -4.8 percent of GDP projected in the national budget announced in June 2023.
The total revenue for the period amounted to $3.645 billion, exceeding the revised forecast by $68.3 million owing to better-than-anticipated collections from both tax and non-tax revenue sources. The Ministry stated that this represents an increase of $896.1 million or 32.6 percent compared to the previous financial year (FY2022-2023).