The government has initiated measures to manage the national debt, focusing on the debt’s proportion relative to the nation’s overall economic output. According to the Ministry of Finance’s provisional financial results for the fiscal year ending in July 2024, 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 Ministry reported that government debt has shown a downward trend, decreasing from 90.6 percent in FY2021-2022 to 82.0 percent in FY2022-2023, and further to 78.3 percent of GDP by the conclusion of FY2023-2024.
Permanent Secretary for Finance, Shiri Gounder, emphasized that ensuring fiscal and debt sustainability is a primary focus for the government. He noted that the fiscal consolidation plan for FY2023-2024 has been strengthened through well-designed revenue reforms and expenditure policies, bolstered by a robust economic recovery.
Gounder highlighted the resilience of Fiji’s economy, supported by strong performances in key sectors like tourism and resource-based industries, alongside increased business confidence following the release of the FY2024-2025 National Budget.
The government reported a net deficit of $443.6 million, which is -3.4 percent of GDP, a significant improvement from the previously projected deficit of $639.1 million or -4.8 percent of GDP outlined in the national budget in June 2023.
Total revenue for the period was recorded at $3.645 billion, surpassing the revised forecast by $68.3 million, attributed to higher-than-anticipated collections from both tax and non-tax revenues. The Ministry stated that total revenue collections for FY2023-2024 increased by $896.1 million or 32.6 percent compared to the previous financial year.