Government debt is projected to rise to $12.6 billion or 84.8 percent of Gross Domestic Product by July 2027 or the end of the 2026-2027 financial year.
This has been confirmed by Minister for Finance Esrom Immanuel in Parliament while responding to Opposition MP Premila Kumar's question on Fiji's actual debt as at 30th September compared with the projected $11.7 billion, or 79.8 percent of the GDP.
Immanuel says domestic debt is expected to rise to $8.2 billion, while external debt is projected at $4.4 billion.
He has also confirmed that as at the end of September this year, total Government debt has increased to approximately $11.6 billion, comprising $7.6 billion in domestic debt and $4 billion in external debt.
The Minister says based on the estimated nominal GDP of $14.8 billion, the debt-to-GDP ratio stood at 78.4 percent, while the debt stock increased between July and September 2026, the debt-to-GDP ratio declined largely due to the increase in nominal GDP.
Immanuel has also confirmed that about $1.03 billion has been budgeted for debt servicing for the current financial year which consists of interest payments of $572.0 million; principal repayments of $436.3 million; and $24.4 million for miscellaneous and short-term financing costs.
He says as at the end of September, Government had already paid approximately $195.4 million in debt obligations, comprising $113.0 million in interest payments; $81.1 million in principal repayments; and $1.3 million in miscellaneous and short-term financing.
The Minister confirms that in the same period, Government collected total revenue of approximately $818.8 million and interest as a percent of Government revenues stood at 13.8 percent at the end of September.
Emmanuel further says composition of Fiji's debt portfolio continues to reflect the Government's strategy of maintaining a balanced mix between domestic and external borrowing.
He says domestic debt accounts for approximately 65 percent of total public debt, while external debt accounts for approximately 35 percent.
Immanuel says public borrowing has enabled the Government to finance critical investments in infrastructure development, education, healthcare services, social protection programmes, climate adaptation and resilience initiatives, and economic development projects that support growth and improve the wellbeing of all Fijians.
Opposition MP Premila Kumar also raised concerns about Fiji’s limited fiscal space for borrowing, as the country prepares for El Niño and the cyclone season, and has questioned what measures are in place to reduce Government expenditure.
While responding, Immanuel says the Government has already introduced cost-cutting measures and expenditure rationalisation, with adjustments made since February to address the global fuel crisis.
He says the current financial year’s budget has already accounted for the crisis, and the Government must continue its capital expenditure programme while supporting vulnerable people.
Immanuel says there is limited room to make further changes this financial year, given the global economic situation.
