Fiji’s economy is bouncing back strongly, with the government reporting significant improvements in its finances and economic performance.

Deputy Prime Minister and Finance Minister Professor Biman Prasad shared an update on the economy during his ministerial statement in Parliament.

He highlighted progress in revenue collection, spending, and debt management during the first quarter of the 2024-2025 financial year.

Prasad says the fiscal deficit for 2023-2024 narrowed significantly to 3.4 percent of GDP compared to 7.2 percent recorded in the previous financial year.

He adds that governments total revenue in 2023-2024 stood at $3.7million, while total expenditure was 31.5 percent of GDP.

He says the strong performance in revenues underpinned by a strong economy, as well as the combination of well-crafted revenue reforms and expenditure policies, have significantly improved the path for fiscal consolidation.

Prasad says from August to October this year, the government recorded a surplus of $131.2 million, total revenue during this time was $1.087 billion, exceeding spending of $956.3 million.

Tax collections were particularly strong, reaching $885.2 million, which was $88.4 million higher than expected.

Non-tax revenues also increased, resulting in a 22 percent overall revenue growth compared to the same period last year.

Prasad says the government has been successfully reducing debt.

By October 2024, Fiji’s public debt was 75.4 percent of GDP, an improvement from 90.7% in 2021-2022.

The government expects debt to drop further to 77.8% of GDP by the end of the financial year.

The government’s strong fiscal management and policies are driving Fiji’s recovery and growth, putting the country in a better position to handle future challenges.