Deputy Prime Minister and Finance Minister, Professor Biman Prasad, has announced that Fiji’s total revenue for the first quarter of the 2024-2025 fiscal year exceeds $1 billion, while total expenditure stands at $956.3 million. This results in a net surplus of $131.2 million, or 0.9 percent of the country’s GDP.
In his recent Ministerial Statement regarding the economy, Prof Prasad highlighted this as a significant improvement compared to the same timeframe last year, which recorded a net deficit of $21.5 million, equivalent to negative 0.2 percent of GDP. He emphasized that the Government’s fiscal strategy is dedicated to maintaining prudent management while also addressing crucial developmental requirements.
Despite the pandemic’s residual challenges, the Government has managed to keep the fiscal deficit in check, with plans to gradually reduce it over the next few years. While the economy demonstrates strong and sustainable growth, Prof Prasad acknowledged the difficulties arising from rising global inflation, particularly affecting the costs of goods, fuel, food, and transportation. The Government is aware of the financial strain on Fijian families and is implementing measures aimed at easing the cost of living.
Encouragingly, the annual headline inflation rate has decreased for the fourth month in a row, dropping to 0.8 percent in November. This figure significantly contrasts with the previous year’s rate of 5.8 percent and is also lower than the 3.6 percent reported in October 2024.
In summary, Fiji is on a path of fiscal improvement and sustainable growth, with the Government actively addressing inflationary pressures. This strategic focus not only helps to build a robust economy but also aims to enhance the quality of life for Fijians amidst global financial challenges. The positive trend in inflation rates is especially promising, indicating a progressive approach to economic stability.
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