Government debt outstanding reached $10.8 billion by the end of October 2025, marking a modest increase of 0.5 percent from the previous quarter and reflecting a 2.3 percent rise compared to the same time last year. The Government Debt Report for the first quarter of the 2025–2026 financial year reveals that this debt level comprises 73.8 percent of the Gross Domestic Product (GDP), with projections suggesting it could rise to 79.8 percent by the end of the current financial year.
The report highlights that domestic debt constitutes the larger portion of government borrowings, accounting for 65.6 percent of the total debt stock, or approximately $7.1 billion. In contrast, external debt makes up the remaining 34.4 percent, totaling $3.7 billion. During the quarter, the government undertook total new borrowings of $211.4 million, predominantly sourced from domestic avenues, while external borrowing remained notably limited.
Furthermore, the government’s debt servicing incurred costs of $303.1 million, which included $176.2 million in principal repayments alongside $126.9 million in interest payments. The Ministry of Finance has indicated that the burden of debt servicing continues to exert significant pressure on government finances.
Additionally, the report details financing agreements finalized with developmental partners during the quarter. Notably, in September 2025, an agreement was made with the Asian Development Bank for the Healthy Oceans and Water Security Improvement Project, valued at approximately $376 million. This initiative aims to enhance resilient water supply services and safeguard marine ecosystems in the Greater Suva Area.
In October 2025, further agreements were signed with the World Bank’s International Development Association for the Pacific Healthy Islands Transformation Project, amounting to about $224 million. This project focuses on improving access to quality health services, particularly in the management of non-communicable diseases.
The Ministry of Finance has also reported progress in discussions for additional concessional financing with various development partners, targeting support for trade facilitation, health, and agricultural projects. The government remains committed to prudent debt management while ensuring that necessary funding is secured for essential development initiatives, thereby fostering hope for continued progress and growth.