FIJI’S national debt to GDP ratio is projected to fall to around 77.8 percent by July this year.
Deputy Prime Minister and Minister of Finance Professor Biman Prasad revealed this at the FCEF breakfast meeting in Suva this week.
He said the Government had managed to reduce the debt to GDP ratio from 90.7 percent in the 2021-2022 financial year to 79.4 percent in the 2023-2024 fiscal year.
He said those had been largely possible because of the rapid recovery in GDP level, as well the Government’s strong commitment to reducing fiscal deficits as part of the fiscal consolidation strategy.
“While tax reforms have played a role in revenue generation, future fiscal discipline will focus on rationalising expenditures, improving public sector efficiency, and prioritising high-impact projects,” Prof Prasad said.
“Our 15-year fiscal framework aims to bring Fiji’s debt ratio down to 60 percent of GDP,” he said.
Prof Prasad said Fiji’s trade deficit was projected to narrow to 34 percent of GDP in 2024 from 36.5 percent the previous year.
He said the current account balance was set to improve to 4.7 percent of GDP, largely attributed to tourism and remittances.
Foreign reserves, he added stood at $3.7billion at the end of January this year, sufficient to cover 5.9 months of retained imports.
He also noted that Fiji’s macroeconomic fundamentals had strengthened over the last two years, notable expansions in key industries, sound financial system strengthened by commercial banks’ strong balance sheets, strong domestic demand and investment activities gaining traction.
Prof Prasad said the economic momentum was clearly reflected in strong tax collections that exceeded projections in the first six months of the 2024-2025 fiscal year.
The Fiji Revenue and Customs Service (FRCS) had recorded $1.8b in taxes collected between August 2024 to January 2025.
“In light of these developments, I am confident the growth projection of 3.4 percent for this year is on track and could even surpass expectations.
“This broad-based growth will be driven by the tourism sector, along with growth in related industries such as transport, accommodation, wholesale and retail, and public administration, finance and insurance sectors.”
NOTE: This article was first published in the print edition of the Fiji Times dated FEBRUARY 21, 2025.
