Opposition MP Premila Kumar has expressed deep concerns about the government’s financial management, particularly regarding its increased borrowing without a clear benefit to the public. During a recent budget debate in Parliament, she highlighted that the 2025-2026 budget may appear appealing at first glance but conceals significant issues underneath.
Kumar likened the current financial situation to “walking into a supermarket full of specials,” pointing out that essential areas such as job creation, infrastructure improvements, and business growth are being neglected. She stated that Fiji’s economy is showing signs of slowdown, with growth projected to decrease from 7.5% in 2023 to just 3.2% by 2025, a trend she attributes to government budget cuts and poor planning.
One of her major criticisms revolves around the government’s borrowing practices, noting that in just two years, it has amassed $2.6 billion in debt—nearly equal to what the previous administration borrowed over a span of 12 years. She underscored that this borrowing isn’t directed toward crucial infrastructure projects but rather used for basic operational expenses. Debt repayments have surged to $1.4 billion, surpassing expenditures on developmental projects, indicating a troubling trend in fiscal policy. Kumar pointed out that only 19% of the budget is allocated to new development initiatives, while a staggering 81% is utilized for running government services.
Kumar has also questioned the whereabouts of newly generated tax revenues, suggesting that they have not significantly contributed to debt repayment or helped fund necessary projects. She accused the government of misallocating funds on an expanded Cabinet, a substantial civil service, extravagant vehicle leases, and over 140 international trips within a year.
The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, is expected to respond to these criticisms shortly. It remains to be seen how the government plans to address these pressing concerns raised by the opposition.
In the realm of economic management, the ongoing dialogue emphasizes the necessity for enhanced transparency and responsible fiscal planning from the government. A positive outlook remains that with continued scrutiny and pressure from the opposition, there might be a push for more effective financial strategies that serve the public’s interests. The government still has the opportunity to turn the narrative around and prioritize the allocation of funds towards impactful projects for the Fijian community.
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