The government remains committed to reducing national debt, enhancing revenue collection, and ensuring sustainable investments to drive long-term economic growth.

Deputy Prime Minister and Finance Minister Professor Biman Prasad says debt repayment continues to be a cornerstone of their fiscal policy.

Prasad says government debt stood at around $10.3 billion of Gross Domestic Product by July end and is projected to be around 77.8 percent of GDP at the end of 2024/2025 financial year.

He adds this will mark a decline from the high of 90.7 percent of GDP in 2021-2022.

“All the macroeconomic indicators, whether we talk about our debt management, whether we talk about our revenue management, whether we talk about our investment policies, the mix of the policies that we put in place in the 2023-2024 budget, in the 2024-2025 budget is actually working and showing significant signs of the fact that we have set the economy on a right trajectory.”

Deputy Prime Minister and Finance Minister Professor Biman Prasad

Prasad adds that the economy is forecast to grow by 3.4% in 2025, with baseline growth of approximately 2.9% and 2.8% projected for 2026 and 2027 respectively.

“While we may be reverting to the long-term average growth rate of around 3%, the higher growth rate can be achieved easily if we continue improving the business environment for private sector investment, maintain the momentum of economic reforms, ensure the stability of our economic policies, the transparency of our economic policies, and provide confidence to well-crafted, coordinated macroeconomic policies.”

However, Opposition MP Premila Kumar says otherwise.

“Families are forced to make impossible choices between medicine and groceries, between rent and electricity bills. Yet the government is telling Fijians the economy is strong and it’s doing well. If that’s true, where is the impact?”

Prasad says the government has introduced several measures to alleviate the cost of living, including increases in the national minimum wage and civil service salaries, targeted subsidies for electricity and water, and continued zero VAT on essential items.

He adds over $1 billion has been allocated to support vulnerable groups, with initiatives such as school fee assistance, sugarcane subsidies, and debt forgiveness under the Tertiary Education Loans Scheme.