Government still borrows

June 7, 2024 4:15 pm

[File Photo]

Minister for Finance Professor Biman Prasad says the government still borrows but is being very mindful.

Prasad says previously the government was underfunded and was relying on borrowing.

He says Fiji was not looking at raising enough revenue at the time.

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Minister for Finance Professor Biman Prasad

The Finance Minister says the coalition government is being very careful and is borrowing in a way that it is able to service its debt.

“While we are progressively reducing the debt-to-GDP ratio, we still have to borrow a little bit. It may not be the same amount we did in the past, but the amount of borrowing is getting smaller.”

Prasad says there will be a time when Fiji will need to borrow more.

He says that once there is significant economic growth, borrowing should continue to decrease.

The Finance Minister adds that the government will continue to work towards bettering its tax collection and support from the international community through their budget support.

Prasad says the government currently pays about $1 billion per year for debt repayment.