THE Australian Government has committed $AU50million ($F72million) in grant budget support funding to Fiji for the financial year 2024-2025.
Officiating at the signing ceremony, Deputy Prime Minister and Minister for Finance Prof Biman Prasad said the additional budget support financing is contingent upon Government achieving mutually agreed set of reform actions in areas of public finance management to support resilience and inclusive economic growth.
“Over the last five to six years, the Australian Government has provided over $580 million in development funding to Fiji,” Mr Prasad said.
“This includes a total budget support grant of almost $400 million, grant support towards social welfare program of over $40 million, almost $60 million in grant support towards rebuilding of schools and other social infrastructure, and around $15 million so far for the CWM Hospital and many other high impact development support.
“Today we are signing an amendment to the funding arrangement to add an additional budget support funding grant of $AU50 million ($F72 million),” Prof Prasad said.
Australian High Commissioner Ewen McDonald said over the last five years, Australia has provided $F456m in grant-based budget support, which has helped Fiji buffer a range of economic shocks around COVID-19 and accelerate delivery of Fiji’s priorities.
The additional support is part of Australia’s greater initiative of strengthening the ‘Vuvale Partnership’, enhancing their relationship with Fiji.
“Since the signing of that partnership just 18 months ago, Australia has committed a further $F280 million in new investments,” Mr McDonald said.
“These of course include investment in things that are very important to the Fijian Government around schools, also hospitals in terms of the masterplans to the CWM as well as renewable energy which, as you know is a very important priority.”
Mr McDonald said Australia’s budget support has promoted key reforms to strengthen the governments budgeting and public financial management in Fiji as well as supporting long term economic growth through reforms to the business environment and the financial sector in the country.
NOTE: This article was first published in the print edition of the Fiji Times dated MARCH 8, 2025.
