Government has begun to rein in on the national debt, not so much by amount but as a percentage of the nation’s total production.
In its provisional financial results for the fiscal year ended July 2024 released this week, the Ministry of Finance revealed total debt stood at $10.309billion at the end of July 2024, equivalent to 78.3 percent of Gross Domestic Product (GDP).
“Government debt has been successfully put on a downward trajectory declining from 90.6 percent in FY2021-2022 to 82.0 percent in FY2022-2023 and further to 78.3 percent of GDP by the end of FY2023-2024,” it stated.
Permanent Secretary for Finance Shiri Gounder said strengthening fiscal and debt sustainability remained Government’s key priority.
“In FY2023-2024, the path for fiscal consolidation has been cemented with a combination of well-crafted revenue reforms and expenditure policies as well as the strong economic recovery,” he said.
“Fiji’s economy remains buoyant backed by positive performances in key economic sectors such as tourism and other resource-based sectors, and improving business confidence following the announcement of the FY2024-2025 National Budget.”
Government also recorded a net deficit of $443.6 million, equivalent to -3.4 percent of GDP, much lower than the $639.1 million or -4.8 percent of GDP announced in the national budget in June 2023.
Total revenue of $3.645billion for period was above the revised forecast by $68.3 million as a result of higher-than-expected collections from both tax and non-tax revenues.
“Compared to the previous financial year (FY2022-2023), total revenue collection was higher by $896.1 million or 32.6 percent,” the Ministry stated.
