The Deputy Prime Minister and Minister of Finance, Professor Biman Prasad, announced that the government has secured a highly concessional loan of $160.3 million (approximately $70 million USD) from the Asian Development Bank. He stated that this funding will aid the government in creating better fiscal space by minimizing the country’s future debt-servicing obligations.
During the loan agreement signing event in Suva last week, Professor Prasad emphasized that this initiative aligns with the government’s long-term strategy to gradually alleviate the debt burden and decrease the debt-to-GDP ratio.
“We started last year with a lower deficit in our budget,” said Professor Prasad. “We are continuing this approach in the current budget. All these policy initiatives are designed to lay a strong foundation for the country, guiding us on a trajectory to not only lessen our debt-servicing commitments over the next five to ten years but also progressively lower both our debt-to-GDP ratio and nominal debt.”
He indicated that the concessional loan is tied to the implementation of effective policy reforms and programs that are part of the financial management framework.
“The Ministry of Finance and the government have initiated several reforms in public financial management,” he noted, mentioning the launch of a new updated Financial and Expenditure Management Information System (FEMIS) that provides real-time data to enhance accountability and transparency in government funding.
Professor Prasad also highlighted that numerous reforms have been undertaken over the past 18 months, including reviews of the Audit Act and the Statistics Act. He explained that these reviews are intended to strengthen legislation and regulations, ensuring improved accountability and transparency in government fund utilization.