SYDNEY-based ANZ Group Pacific Economist Kishti Sen said Fiji’s successive deficit budgets have added to the stock of debt.
“With respect to the Government’s ability to finance its deficit for 2024-2025, roll over maturing debt and to be able to afford the stock of debt, I don’t see any problems with that because Fiji has a roadmap to continue to grow the economy,” Mr Sen said.
However, he said at some point in the future, some soul searching would be required to reduce the size of the deficits and gradually move towards a position of surplus budgets.
He added he saw optimism in Fiji’s economic prospects, and that came from the investment that would take place over the next decade or so.
“This budget is doing its part by providing policy and legislative certainty, and that in my view is the most critical ingredient needed to create and sustain the confidence of the private sector, both domestically and from overseas, to continue investing in Fiji.
“As long as this continues and the economic blueprint is executed well, the debt to GDP ratio will continue to come down, future budgets will have smaller deficits and there is a real chance of achieving surplus budgets and start paying down debt within the next 10 years.
“All in all, a budget that meets the moment in my view,” Mr Sen said.
Government has estimated a net deficit of $886,040.1 million and debt repayments of $601,968.2m in the 2025-2026 fiscal year.
The estimated gross deficit of $1,488,008.3m will be financed from overseas loans of $559,313.8m, and domestic loans of $928,694.5m.
Note: This article was first published on the print version of the Fiji Times dated June 28, 2025
