Opposition MP Premila Kumar has accused Acting Prime Minister and Minister for Finance Biman Prasad of presenting a misleading narrative regarding Fiji’s debt-to-GDP ratio, which he claims has improved by 75 percent. Speaking to FijiLive, Kumar suggested that this statement is an attempt to divert attention from what she describes as the government’s reckless fiscal management.
Kumar argued that the FijiFirst Government left behind a robust economy, previously recognized as the fifth fastest-growing economy in the world. She raised critical questions about Prasad’s financial strategies, asserting that there have been no significant debt repayments, no cessation of borrowing, and no reductions in unnecessary operational expenditures. According to her, debt levels continue to climb while government spending remains unrestrained.
The opposition leader pointed to the temporary spike in the debt-to-GDP ratio caused by significant economic disruptions, namely the impact of two severe cyclones in 2020 and the COVID-19 pandemic. This period saw the economy contract by 17.2 percent and 4.1 percent in 2020 and 2021, respectively. She argued that the subsequent decline in the debt-to-GDP ratio is purely a result of natural GDP recovery, rather than any effective fiscal discipline from the current Coalition Government.
Kumar emphasized that despite the Coalition Government’s claims of addressing debt levels, they have borrowed an additional $1 billion since taking office in January 2023 without significant challenges. She also criticized the government’s approach to increasing revenue through taxation instead of managing expenditures more prudently. She noted the growing government bureaucracy, which includes 34 ministers and assistant ministers, calling it a significant misuse of taxpayer money.
Furthermore, while acknowledging wage increases touted by the coalition, Kumar reminded that such advancements were primarily established by the previous Bainimarama Government. She accused the current government of merely rebranding existing policies without introducing meaningful innovative economic strategies.
Kumar concluded by calling Prasad’s assertions a “calculated deception” aimed at masking the government’s shortcomings in managing public finances, urging him to take accountability for these issues. FijiLive has reached out to the Acting Prime Minister and the Ministry of Finance for their comments but has yet to receive a response.
The political dynamics in Fiji reveal a deepening divide on economic management, highlighting the challenges facing the Coalition Government as it continues to navigate fiscal responsibilities and public perception in the wake of the pandemic.
Leave a comment