Fiji’s fiscal deficit narrowed in 2023 due to high revenue collection, says the Asian Development Bank in its 2024 outlook report.

And the ADB says as the deficit declined, the debt-to-GDP ratio also fell.

In line with general improvement in economic conditions, revenue rose by 22.6% in fiscal year 2023, ended July 31, 2023, largely due to increases in indirect tax revenues. The report says conversely, expenditure increased by only 0.6%, reflecting delays in capital project implementation and general government fiscal consolidation. This reduced the fiscal deficit to the equivalent of 6.9% of GDP, down from 11.9% the previous year.

The ADB says Fiji’s debt-to-GDP ratio declined from 88.8% at the end of Fiscal Year 2022 to 80% at the end of Fiscal Year 2023.

The report says while the share of external debt to total debt has increased over time, much of it is concessional financing from multilateral and bilateral partners with low interest rates and extended maturity periods.

The ADB says apart from Fiscal Year 2021 – when Fiji repaid its global bonds, external loan repayments have stayed under 8% of government revenues.