Opposition Member of Parliament, Sachida Nand, has expressed concerns regarding the 2024/2025 budget, stating it lacks measures to boost investment and growth in Fiji. During the parliamentary debate on the budget, Nand mentioned that the budget does not offer new incentives for local investments.
“Banks are complaining of high liquidity as people are not borrowing to invest. Even when loans are approved, people are not drawing to invest,” said Nand. He also pointed out the absence of provisions to attract foreign investments, which he believes is crucial for the economic growth of Fiji.
“When the economy booms, people’s trust and confidence in the Government increase. I urge the Honourable Deputy Prime Minister and the Minister for Finance to work on this,” he added.
Nand highlighted a shift in the Honourable Deputy Prime Minister and Minister for Finance’s rhetoric, noting that past discussions were dominated by nominal debt or per capita debt concerns. “Until November 2022, the only thing the Honourable Deputy Prime Minister and Minister for Finance talked about was the Dinau or the nominal debt or the per capita debt. This was very much missing from his speech, and he started talking about debt to GDP ratio.”
According to Nand, the expected debt in the 2024/2025 budget is $10.91 billion, translating into a per capita debt ranging from $12,000 to $12,800, depending on the population. “In the Honourable Minister of Finance’s language, every citizen carries a debt of $12,000 to $12,800,” he emphasized.
Nand also criticized the allocation of $2 million for the establishment of the Narcotics Bureau, deeming it insufficient to combat a multi-billion dollar problem. “I believe we are investing too little to fight a problem which affects many issues. I urge the Honourable Minister to reconsider and increase the allocation.”
He further pointed out the absence of direct infrastructure investment in the budget, noting that funds are primarily allocated for maintaining existing infrastructure developed by the previous government. “My question is what new roads are being done by this government, and the answer is none,” Nand said.
Lastly, Nand warned against the government’s heavy reliance on direct budget support from donor agencies, cautioning that this support is not guaranteed long-term. “Government should remember that this is not a permanent facility that will always be available. This can be withdrawn if economic conditions in the country are not favorable. We should start focusing on having a budget without this,” he concluded.