The Reserve Bank of Fiji has warned that the government's debt level has risen to over 50 per cent of the country's gross domestic product.
The Reserve Bank governor, Savenaca Narube, has told the Fiji-Australia Business Council that this is having a worrying impact on Fiji's balance of payments deficit, which is widening even further because of soaring fuel prices.
The Daily Post quotes Mr Narube as saying the government should only make debt available for capital formation and not operating expenditure.
He says given this debt level the expansionary policies adopted after the coup may not be appropriate any longer.
Mr Narube says a new strategy is needed to balance growth and macro-economic stability.
He says this balancing act may become more complicated with general elections around the corner.
The Reserve Bank governor says Fiji's economic growth rate for the next two years is likely to be below two per cent.
