Government MP Professor Biman Prasad has mounted a robust defence of the coalition’s economic direction in Parliament, insisting that borrowing and tax changes were necessary to finance development and expand public services. Speaking in response to opposition criticism of the government’s fiscal record, Prasad said reforms introduced in the 2023–2024 national budget raised revenue and created fiscal space for a large expansion of social and development spending.
“We started collecting more revenue and put out about $700 to $800 million in increased social welfare, support to agriculture, back-to-school support and full scholarships,” Prasad told MPs, citing the budget measures as pivotal to the coalition’s commitments to vulnerable households and human capital investment. He said those revenue gains, alongside targeted borrowing, have been channelled into both immediate social needs and longer-term infrastructure.
Prasad defended the government’s decision to borrow, saying the proceeds have been invested in “critical infrastructure projects,” naming upgrades to water systems, schools and hospitals, together with other economic infrastructure. He argued those investments underpin economic activity and deliver services that would otherwise be unaffordable without external or domestic financing.
The minister framed the fiscal choices as part of a broader strategy: Fiji has recorded three consecutive years of economic growth under the coalition, he said, and that expansion has helped lower the country’s debt-to-GDP ratio to “about 79 percent.” Prasad pointed to the government’s National Development Plan and Vision 2050 as the long-term road map, saying sustained growth, improved infrastructure and job creation with rising wages are central to transforming Fiji into a high-income economy.
Opposition MPs have repeatedly questioned the scale of borrowing and the government’s tax measures, arguing they could saddle future generations with heavy repayment obligations and higher costs. Prasad’s speech is the latest development in an ongoing parliamentary debate over fiscal management, with the coalition seeking to justify near-term deficits and elevated debt levels as investments that generate social returns and economic growth.
Independent monitoring and recent government reports have shown government debt approaching the 80 percent of GDP mark, a figure critics cite when warning of fiscal risk. Prasad acknowledged the headline debt metric but stressed that growth and the composition of borrowing — including concessional financing for health and water projects — have moderated immediate fiscal pressure and funded projects with clear public benefits.
The exchange in Parliament underlines the balancing act facing the government: maintaining investor and public confidence while funding urgent social programs and infrastructure upgrades. With the National Development Plan and Vision 2050 guiding policy choices, the coalition says its approach prioritises inclusive development and job creation. Opponents, however, say closer scrutiny of borrowing terms, debt servicing costs and the long-term fiscal path will be needed as the nation pursues those ambitions.
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