The coalition government’s debt at the end of next month is projected to reach $11.4 billion, which is equivalent to 80.9 percent of GDP.
This comprises $7,529.0 million or 66.2 percent of domestic debt and $3,844.3 million or 33.8 percent of external debt.
In its pre-election Economic and Fiscal Update, the Ministry of Finance says the government debt has increased significantly over recent years due to economic challenges, infrastructure development and recovery measures following the COVID-19 pandemic.
The Ministry states that despite this, gradual improvement is noted in the debt to GDP since 2022, attributed to strong growth in GDP
The government’s total debt at the end of April stood at around $11b, equivalent to 78.5 percent of GDP.
It says the debt mix at the end of April comprised 67.9 percent $7,493.4 million, in domestic debt and 32.1 percent or $3,534.9 million in external debt.
In the first nine months of this fiscal year, the Government has utilised around 53.9 percent or $802.4 million, of the total appropriated borrowing.
This includes 82.3 percent or $763.9 million of the domestic borrowing limit and only 6.9 percent or $38.5 million, of the approved external borrowing limit.
In terms of debt servicing, the government has utilised around 73.9 percent or $842.8 million, of the budgeted amount for FY2025-2026.
Of this amount, $447.9 million is principal repayments, $392.1 million is interest payments and $2.8 million is miscellaneous & short-term financing.
The Medium-Term Fiscal Strategy for the period FY2026-22 to FY2028-29 was endorsed by Cabinet in January and subsequently tabled in Parliament in March.
The overarching objective of the FY2026-27 Fiscal Strategy is to restore the fiscal deficit to sustainable levels and place public debt on a firm downward trajectory
While Fiji’s debt position remains sustainable, the latest IMF Article IV report highlighted that the government debt is elevated and remains far above pre-pandemic levels but manageable if economic growth continues and the Government maintains tighter discipline.
The government’s increased access to concessional external financing has resulted in the deviation from our external debt benchmark of 70:30 (+/-5) domestic and external debt during the last five – years timeframe.
However, the government has managed to align its debt composition closer to the benchmark target with a projected 66.2 percent domestic debt and 33.8 percent external debt at the end of FY2026.
