Fiji’s total government revenue remained virtually unchanged in the 2025–2026 financial year, increasing by just $500,000 despite collections exceeding the original budget by more than $106 million.
According to the Ministry of Finance’s Government’s Fiscal Performance – August 2025 to July 2026 provisional report, released last month, total revenue increased by a marginal 0.01 per cent, from $4,053.2 million in the previous financial year to $4,053.7 million.
The figures highlight stagnant year-on-year revenue growth despite stronger-than-expected tax collections.
The report revealed that total revenue exceeded the original budget by $106.2 million, or 2.7 per cent, and was $159.7 million, or 4.1 per cent, above the revised forecast.
Tax revenue remained the Government’s main source of income, with collections reaching $3,511.2 million during the financial year.
This was $137 million, or 4.1 per cent, above the original budget and $119.9 million, or 3.5 per cent, higher than the revised forecast.
However, the stronger tax performance was partly offset by declining non-tax revenue.
Non-tax revenue collections stood at $542.5 million, falling $26.1 million, or 4.6 per cent, compared with the previous financial year.
Collections were also $30.8 million, or 5.4 per cent, below the original budget, representing approximately 94.6 per cent of the amount initially projected.
Despite this shortfall, non-tax revenue exceeded the revised forecast by $39.7 million, or 7.9 per cent.
The report identified several areas contributing to the decline in non-tax revenue.
Grants-in-aid fell by $29.7 million compared with the previous financial year, while interest on term loans declined by $22 million.
Reimbursements and recoveries also decreased by $1.5 million, while interest from bank balances fell by $1.4 million.
However, some revenue categories recorded improvements.
Fees, fines and charges increased by $13.9 million, while dividends from government investments rose by $8.9 million.
Other revenue and surpluses also increased by $6 million compared with the previous financial year.
Against the original budget, reimbursements and recoveries recorded the largest shortfall of $35.2 million, followed by fees, fines and charges, which were $8.7 million below expectations.
The sale of government assets was also $5 million below budget, while interest on term loans fell short by $3.4 million.
On the positive side, dividends from investments exceeded budget expectations by $15.1 million, while other revenue and surpluses were $10.6 million above projections.
The provisional financial results indicate that while the Government managed to surpass its revenue targets for the year, overall collections showed almost no growth compared with the previous financial year.
The figures also highlight the importance of stronger and more diversified revenue sources, particularly as the Government continues to manage its fiscal commitments and expenditure requirements.
