Govt revenue declined by 11% to $276.4 million, expenditure rose at 31.2% to $547.1 million due to an increase in capital expenditure in the first two months of the financial year

The Reserve Bank of Fiji says Government revenue declined by 11% to $276.4 million while total expenditure rose sharply at 31.2% to $547.1 million due to the surge in capital expenditure on an annual basis in the first two months of the 2021-2022 financial year.

The RBF economic review says the net deficit increased to $270.7 million, contributing to the elevated Government debt levels which stood at $8 billion or 80.9% of GDP in October.

However the RBF says financial conditions remain highly accommodative with ample liquidity in the banking system at $1.813 billion, keeping interest rates low.

Broad money grew by 8.3% annually in October supported by higher gross reserves and Government bond purchases.

The RBF says the decline in outstanding private sector credit slowed further as commercial banks’ new loans cumulative to October grew by 6.8% compared with the same period last year.

The value of non-performing loans fell over the month for both commercial banks and licensed credit institutions but still remains at elevated levels.