Opposition MP Premila Kumar has called on Finance Minister Professor Biman Prasad to provide a detailed account of all overspending by government agencies and projects, including justifications for these expenses. Her request comes after the government announced a reallocation of funds in the 2023/2024 National Budget to address a $7.9 million overspend by the Ministry of Education and the Fiji Police Force.
Professor Prasad responded by stating that the overall expenditure for the 2023/2024 fiscal year remained within the total appropriation approved by Parliament, with actual spending recorded at approximately $4.1 billion, which is below the budgeted amount of $4.3 billion.
Kumar criticized the situation as indicative of significant failures in financial management, calling into question the government’s claims of accountability and transparency. She emphasized that while such fund reallocations are allowed under the Financial Management Act, they reveal deeper systemic issues, including poor planning, insufficient budget allocations, and ineffective expenditure control.
She stated the public deserves clarity on how these overspendings happened and what preventive measures, if any, are in place to stop government agencies from exceeding their budgets. She argued that this scenario demonstrates inadequate monitoring within the government.
In his defense, Professor Prasad denied any overspending at the governmental level as claimed by Kumar. He pointed out that the overall net deficit for the previous fiscal year was approximately 3.3%, which is better than the budgeted 4.8%. He attributed this to strong tax collections and the government meeting its revenue forecasts.
Prasad also highlighted that budget reallocations and redeployments are standard practices within their budgeting system, allowing operational flexibility but under a structured legal framework, which includes requiring Cabinet approval for any fund reallocation.
He explained that the recent fund redeployment was necessary to cover a $1.8 million shortfall for the Ministry of Education to ensure that salaries and allowances for teachers at various educational levels were met. Additionally, the Fiji Police Force faced a $6.1 million shortfall to cover salaries and allowances for officers.
The Minister asserted that the Coalition Government has been transparent in its decision-making processes, including public notifications of all Cabinet decisions, contrasting this with the previous government’s lack of disclosure regarding redeployments and other Cabinet actions. He accused Kumar of hypocrisy regarding financial management and suggested she reflect on the issues faced during the previous government of which she was a part.