Fiji's Debt-to-GDP Ratio Expected to Drop to 77.8% by July

Acting Prime Minister and Minister for Finance, Professor Biman Prasad, announced that Fiji's national debt-to-GDP ratio is projected to decrease to 77.8% by July this year.

This was highlighted during the Fiji Commerce and Employers Federation's State of the Economy Breakfast Talanoa.

Professor Prasad emphasized the government's commitment to prudent fiscal management, which has been instrumental in reducing the debt-to-GDP ratio from 90.7% in the 2021-2022 financial year to 79.4% in the 2023-2024 financial year.

This achievement is attributed to the rapid recovery in GDP levels and the government's strong focus on reducing fiscal deficits as part of their fiscal consolidation strategy.

Looking ahead, the government plans to continue its efforts by rationalizing expenditures, improving public sector efficiency, and prioritizing high-impact projects.

The long-term goal is to bring Fiji's debt ratio down to 60% of GDP within a 15-year fiscal framework. To achieve a debt-to-GDP ratio of 45-50% in the next decade, an annual growth rate of at least 5% is required.

From August 2024 to January 2025, the government collected approximately $1.8 billion in taxes, surpassing the forecast by $136.4 million and accounting for 55% of the total budgeted tax revenues for the fiscal year.

Additionally, remittances increased by 6% in 2024, reaching a record $1.3 billion, although future remittance levels may be affected by the return of Fijians from the U.S.

In other news, a Flash Flood Alert has been issued for eastern parts of Viti Levu and parts of Vanua Levu, and discussions are underway regarding the potential introduction of a tax on the suki industry, which was valued at about $12 million in 2012.

Marriott hotel workers in Fiji are set to receive a 4.5% wage increase, and Nadogo College has completed $27,000 worth of renovations to improve student education.

The Ante-Natal Clinic and Midwives Training Rooms at CWM Hospital have also received new furniture to enhance comfort and training flexibility.

Lastly, Fiji's renowned Shobna Chanel dance group has embarked on their journey to the International Dance and Music Festival.