Government Debt: Fiji has a government debt-to-GDP ratio of approximately -- of GDP, owing to persistent fiscal deficits that average -.- of GDP per annum (---------). High inter- est costs and populist spending are a constant drag on the fiscal accounts. However, with most of the government s debt being long-term debt, it is unlikely that the government will face any funding shortages in the near future. Fiscal Deficit: Fiji s fiscal deficit averages -.- of GDP, with a primary deficit of approximately -.- of GDP; the considerable difference reflecting the cost of interest on the government s debt load. However, the government has been undertaking efforts at overhauling the tax system in a bid to minimise tax leakages, which should help shore up revenues. ...However, the government has been undertaking efforts at overhauling the tax system in a bid to minimise tax leakages, which should help shore up revenues.
...Private Consumption: Private consumption makes up --.- of GDP in Fiji, largely supported by the high level of remittance inflows. This reflects a low savings rate in the economy, with the bulk of the production made to satisfy current consumer demand at the expense of future growth. Over the coming years, we forecast a very gradual decline in private consumption relative to GDP, with the figure falling to --.- by ----. Government Consumption: Government consumption rep- resents an estimated --.- of GDP, and we see this figure remaining fairly constant over the coming years. On the one hand, efforts to minimise the leakages of tax revenue are likely to be supportive of revenue growth. ...On the one hand, efforts to minimise the leakages of tax revenue are likely to be supportive of revenue growth. On the other hand, the gov- ernment s implementation of its economic development plans will prevent government consumption from falling.
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