Fiji’s debt-to-GDP ratio is anticipated to decrease to approximately 77.8 percent by July 2025, as reported by Acting Prime Minister and Minister for Finance, Biman Prasad, during the recent State of the Economy Breakfast Talanoa in Suva. This marks a significant reduction from a high of 90.7 percent in the 2021-2022 financial year, with the current ratio at 79.4 percent for the 2023-2024 fiscal period.
The government credits this decline primarily to a robust recovery in Gross Domestic Product (GDP) and its commitment to lowering fiscal deficits. Minister Prasad emphasized that the Coalition Government has successfully reduced deficits from a peak of seven percent to a more manageable range of four to 4.5 percent. This aligns with Fiji’s long-term fiscal strategy, which aims to achieve a debt-to-GDP ratio of around 60 percent by 2040.
Further details from previous reporting indicate that Fiji’s total national debt stood at $10.309 billion by the end of July 2024, reflecting the efforts to manage and reduce the overall debt levels effectively. The fiscal landscape shows positive trends with total revenues reaching $3.645 billion, exceeding initial forecasts by $68.3 million and marking a 32.6 percent increase compared to the prior fiscal year.
Shiri Gounder, Permanent Secretary for Finance, reiterated the government’s focus on fiscal sustainability, highlighting recent reforms in revenue and expenditure management. The recovery of critical sectors like tourism, alongside improved business confidence following the announcement of the FY2024-2025 National Budget, contributes to a promising economic outlook for Fiji.
This positive trajectory in fiscal management not only indicates prudent government actions but also reflects an optimistic future for Fiji’s economy, with efforts in place to ensure growth and stability amidst global challenges. The Coalition Government’s approach emphasizes a balanced strategy of growth and fiscal responsibility, aiming for sustainable development that benefits the nation.
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