[Photo: File]

Fiji’s public debt is projected to rise to $12.6 billion by July 2027, according to figures released in Parliament by Finance Minister Esrom Immanuel.

The Minister revealed the forecast while responding to a question from Opposition MP Pramila Kumar, noting that government debt had already increased to $11.6 billion by September 2026, up from $11.4 billion recorded in July.

Despite the increase in borrowing, Immanuel said Fiji’s debt-to-GDP ratio had fallen from 81 percent to 78.4 percent, driven by growth in the country’s economy.

He said Fiji’s debt portfolio currently consists of $7.6 billion in domestic debt and $4 billion in external debt, adding that the government remains committed to prudent borrowing and transparency in reporting public finances.

“The government remains committed to maintaining transparency in the reporting of Fiji’s fiscal position and public debt while ensuring that borrowing is undertaken prudently and responsibly to support national development priorities and long-term economic sustainability.”

During the exchange, Kumar raised concerns about Fiji’s borrowing capacity, referencing World Bank comments on the country’s limited fiscal space and asking what measures were being taken to reduce government expenditure.

“If we look at the current situation where 82 cents of a dollar goes towards running the government and only 18 cents is for the development work and you have just stated that all of this money is going into capital works but we all know how much of that is going into capital work, what measures are in place to reduce the government expenditure so that you can improve the fiscal space.”

In response, Immanuel said government had already taken current economic pressures into account when preparing the national budget and was continuing to balance fiscal responsibilities with support for vulnerable communities.

“We’re aware of the issues on our debt as well as what’s needed to keep the economy going as well as keeping our people sustained especially the vulnerable ones. So for this financial year, I don’t think we can do much and the World Bank and ADB are aware of those and we have a capital expenditure program that we need to undertake which has already started from September onwards.”

The Minister said domestic borrowing continues to account for about 65 percent of Fiji’s total debt, while external loans make up the remaining 35 percent.

Government says the projected increase in debt will support ongoing investments in infrastructure, healthcare, education, social protection programmes and climate resilience initiatives.