Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that in the first quarter of the 2024-2025 fiscal year, Fiji’s government reported total revenue collections exceeding $1 billion, while total expenditures amounted to $956.3 million. This has generated a net surplus of $131.2 million, representing 0.9 percent of the country’s GDP.
In his remarks regarding Fiji’s economic status, Prof Prasad highlighted this achievement as a significant improvement compared to the same quarter of the previous fiscal year, which saw a net deficit of $21.5 million or negative 0.2 percent of GDP. He emphasized that the government’s fiscal strategy remains focused on prudent financial management while addressing essential developmental priorities.
Despite the economic fallout from the pandemic, the government has successfully maintained control over its fiscal deficit, with plans for gradual reduction in the coming years. Notably, he acknowledged the challenges presented by rising global inflation, particularly the increasing costs of goods like fuel, food, and transportation, which have been burdensome for many Fijian households.
However, there is a silver lining as Prof Prasad noted that the annual headline inflation rate has decreased for four consecutive months, reaching 0.8 percent in November. This marks a substantial drop from the 5.8 percent inflation rate recorded during the same period last year and is lower than the 3.6 percent reported in October 2024.
In summary, Fiji is witnessing positive economic trends with a surplus and decreasing inflation, which could build a foundation for future growth and stability. The government’s ongoing commitment to sound fiscal policy and support for the populace paves the way for an optimistic outlook as the nation navigates its economic recovery.
Leave a comment