Fiji’s Fiscal Triumph: Surplus Sparks Economic Optimism

Fiji’s Deputy Prime Minister and Finance Minister, Professor Biman Prasad, recently announced positive economic developments for the first quarter of the 2024-2025 fiscal year. The government’s total revenue collections surged to over $1 billion, while total expenditures were recorded at $956.3 million. This financial performance resulted in a net surplus of $131.2 million, equivalent to 0.9 percent of the country’s GDP.

Professor Prasad highlighted that this represents a significant improvement compared to the preceding year’s performance, which reported a net deficit of $21.5 million, or negative 0.2 percent of GDP. He emphasized that the government’s fiscal strategy focuses on prudent management of finances while addressing essential developmental needs.

Despite challenges stemming from the pandemic, the government has managed to keep its fiscal deficit in check, with plans to continue reducing it over the coming years. While Fiji’s economy exhibits strong and sustainable growth, Professor Prasad acknowledged the pressure of global inflation on local markets, particularly in the areas of fuel, food, and transportation. The government is aware of the financial strain this places on households and is implementing measures to ease the cost of living.

In a particularly encouraging development, Professor Prasad reported that the annual headline inflation rate has decreased for the fourth consecutive month, landing at 0.8 percent in November. This is a noteworthy drop when compared to the 5.8 percent inflation rate during the same period last year and is also lower than the 3.6 percent recorded in October 2024.

This strong economic performance underlines the resilience of Fiji’s economy and reflects the government’s commitment to maintaining financial stability while supporting its citizens through challenging times. The reduction in inflation is particularly hopeful, suggesting that the measures taken by the government to alleviate economic pressures are beginning to take effect.

Overall, these developments highlight a turn towards a more prosperous and stable economic future for Fiji, offering a sense of optimism for both the government and citizens alike.