Fiji’s total government expenditure is projected to reach $5 billion within the next three years, while national debt is forecast to climb to almost $14 billion, according to the Ministry of Finance’s Pre-Election Economic and Fiscal Update.
The fiscal framework outlined in the update projects total expenditure to increase from $4.83 billion in the 2026-2027 financial year to $5.0 billion by 2028-2029.
At the same time, total debt is expected to rise from $12.39 billion in 2026-2027 to $13.71 billion by 2028-2029.
The figures show that while government spending continues to grow, authorities expect annual budget deficits to gradually narrow over the medium term.
The net deficit is projected at $737.6 million in 2026-2027, equivalent to 5.0 percent of Gross Domestic Product. This is forecast to decline to $686.8 million in 2027-2028 and further to $636.7 million in 2028-2029, reducing the deficit-to-GDP ratio to 4.0 percent.
Government revenue is also expected to increase steadily, rising from $4.1 billion in 2026-2027 to $4.36 billion by 2028-2029.
Tax revenue remains the primary source of government income and is projected to grow from $3.53 billion to $3.86 billion over the three-year period.
The fiscal framework indicates that operating expenditure will continue to account for the largest share of spending, increasing from $3.82 billion in 2026-2027 to $3.9 billion in 2028-2029.
Capital expenditure is projected to rise from $1.01 billion to $1.1 billion over the same period as government continues investing in infrastructure and development projects.
Despite the gradual reduction in annual deficits, the update forecasts the debt-to-GDP ratio to remain elevated, increasing from 84.7 percent in 2026-2027 to 85.5 percent by 2028-2029.
The Ministry says the medium-term fiscal framework aims to balance economic growth, infrastructure investment and public service delivery while progressively improving fiscal sustainability.
