Shania Shayal Prasad 
[File Photo]
Fiji is aiming to reduce its debt-to-GDP ratio to 60 percent within the next 10 to 15 years.
The country has already made progress, reducing the ratio from 90.7 percent in 2021-2022 to 79.4 percent in 2023-2024.
Deputy Prime Minister and Finance Minister Professor Biman Prasad says the ratio is expected to drop further to 77.8 percent by July 2025.
Prasad attributes this improvement to the country’s strong GDP recovery and the government’s commitment to cutting fiscal deficits from 7 percent to between 4 and 4.5 percent.
Labasa town. [File Photo]
He adds that tax reforms, improved public sector efficiency, and prioritizing high-impact projects have been key to this progress.
However, Prasad stressed that bringing the debt-to-GDP ratio down to 60 percent is a long-term goal that will require careful planning and continued effort.
“So we recognize that balancing fiscal prudence with economic growth is always challenging, but it is essential for long-term sustainability. And the government, therefore, remains committed to fostering a sustainable economy while ensuring that fiscal safeguards are in place.”
Prasad warned that failure to control debt could result in serious economic challenges for the country, including impacts on businesses.
