Reducing Fiji's Public Debt

With a national debt level of 80 per cent of Gross Domestic Product (GDP), the Government’s goal is to reduce public debt down to around 75 per cent of GDP over the next three years, says Assistant Minister for Finance Esrom Immanuel.

Prime Minister Sitiveni Rabuka called Fiji’s current debt-to-GDP ratio unacceptable and unsustainable in his New Year’s address last month. He reaffirmed the Government’s commitment to servicing Fiji’s debts.

This effort included revenue and expenditure reforms introduced in the 2023/2024 Budget and a $1.05 billion allocation to meet its financial obligations.

Mr Immanuel said they were also necessary to address key development needs, especially in infrastructure and health.

“We had a dilemma. The Government had to pick up a lot of debt. The buffer is in there and major capital works were required. They’re (World Bank) quite happy with what was done. We were proactive and tried to do things to minimise the effect and raise revenue,” he said.

Economic outlook

The Reserve Bank of Fiji’s January economic review warned of the potential negative impact of the crisis in China on global growth.

China’s economic slowdown driven by property sector challenges could pose a risk to big trading countries like Australia, but Mr Immanuel said it wasn’t a major threat to Fiji’s economy.

“Tourism is the sector that’s driving our country.

“I can see China doing something about the situation there, and hopefully there won’t be much effect globally.”

Mr Immanuel also emphasised the need for growth in primary and natural resource industries, whose production the Reserve Bank said in the January review was impacted by industry-specific issues, such as adverse weather and operational challenges.

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