The supplement document of the 2021-2022 revised budget reveals that cash grants were conservatively budgeted at around $116.3 million.

However, with large budget support inflows from Australia and New Zealand in the first half of the year together with projected inflows from other development partners, grant revenues are now anticipated at around $214.2 million.

Government also expects to receive around $70 million in reimbursement and recoveries from various existing trust fund accounts and $14.8 million from the sale and disposal of various properties, including the Brussels Foreign Mission, Savusavu Industrial Zone Lots, Factory 6 and Administration Building in Kalabu Tax Free Zone (KTFZ), 4.2-acre lot in Vatuwaqa and remittances from properties in KTFZ.

These increases are expected to offset the shortfall from the $150 million planned divestment of Amalgamated Telecom Holdings Limited shares which is currently on hold.

Public debt is projected to increase to $9,125.7 million, equivalent to 88.6 per cent of GDP. This is lower than the earlier projected debt to GDP ratio of 91.6 per cent, due to a lower than earlier anticipated fiscal deficit.

Moving forward, with the projected growth in the economy and the planned reduction in fiscal deficit levels, the debt to GDP ratio is expected to fall below 80 per cent in the next 2 to 3 fiscal 27 years.

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