Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says the Government has a strategy in place to drastically reduce Fiji’s enormous debt level in the next seven years.
Speaking at the Annual ADB Governors Meeting in Korea, Prof Prasad said that while Fiji’s debt to GDP stands slightly over 80 per cent, Fiji’s strategy looking at strengthening its fiscal consolidation policies, look at its expenditure, and its revenue – and to be mindful of the recovery and growth that Fiji is experiencing at the moment.
Prof Prasad said the Government does not want to disrupt the growth path, as well as the fiscal consolidation – that over the period of time, Fiji is able to sustain its debt level and ensure the economy grows.
“This will ensure Fiji will progressively reduce our debt to GDP ratio in the next seven years… and Fiji is on track to delivering this in three years’ time,” Prof Prasad said.
He highlighted that the Government is also trying to find the balance and is trending carefully moving forward.
Prof Prasad said while the Asian Development Bank has been one of the first multilateral partners to assist Fiji’s recovery, the Government hopes that concessional funding, grants or climate financing would prepare Fiji, if shocks happen in the market.
“The idea behind climate financing is very important and as the Asian Development Bank repositions itself as a future climate bank… this would benefit Fiji in terms of securing better concessional funds and financing; and what Fiji has experienced is a very historical impact on the economy as a result of COVID-19.”
Prof Prasad added that Fiji is experiencing economic recovery and economic growth, due to the sound fiscal policies in place to counter market shocks and other fiscal risks that could affect growth.
