The Ministry of Finance has announced that the country’s national debt is projected to reach $12 billion by 2027. The information was disclosed in the ministry’s Economic and Fiscal Update presented to the Parliament last week. The government is considering borrowing funds from the Fiji National Provident Fund and exploring the option of concessional financing from multinational banks and development partners to manage the proposed deficit.
Forecasts suggest that the national debt is expected to raise to $11.4 billion by July 2026 and reach the $12 billion mark by July 2027.
As for the financial years 2025-2026 and 2026-2027, the revenue is predicted to surpass $4 billion, with an expenditure projected to be around $4.6 billion and $4.7 billion respectively.
In the fiscal year of 2025-2026, a net deficit of $552.2 million is anticipated, based on the estimated total revenue of $4095.9 million and total expenditure of $4684.1 million.
The ministry adds that with the anticipated net financing requirement of less than $600 million in the succeeding fiscal year, the approach to deficit financing may not pose a major problem due to the readiness of domestic financial establishments like the FNPF to support, coupled with the option for concessional financing from multilateral banks and development partners.
By July 2024, the national debt is expected to be around $10.2 billion.