The Government expects Fiji’s budget deficit and public debt to fall faster than projected if global economic conditions improve, with the 2026-2027 National Budget deliberately based on a worst-case scenario.
Speaking at the Dialogue Fiji National Budget Forum in Suva on Wednesday, Minister for Finance Esrom Immanuel said the budget had been framed conservatively because of continuing global uncertainty.
“The global environment remains highly uncertain,” he said.
“The fuel crisis may ease sooner than expected. Global economic conditions may improve. Tourism could perform better.
“Government revenue could recover more strongly than currently projected.”
He said stronger-than-expected economic performance would improve the country’s fiscal position.
“If that happens, Fiji’s fiscal outcome will also improve. Our deficit could fall below five (5) per cent of GDP. Public debt could be lower than currently projected. That is exactly what Government wants.”
Mr Immanuel said the Government remained committed to restoring fiscal sustainability over the medium term by steadily reducing borrowing and strengthening the country’s financial resilience.
“We must gradually rebuild our fiscal buffers. We must reduce deficits. We must place public debt on a downward path.
“Most importantly, we must restore the fiscal space needed to respond effectively to future shocks, whether they be cyclones, pandemics, global conflicts or other unforeseen crises.”
