Fiji’s Financial Oversight in Crisis: Is the Government Failing?

Premila Kumar, an opposition Member of Parliament, criticized the Government’s recent decision to reallocate funds within the 2023-2024 National Budget to address a $7.9 million overspending by the Ministry of Education and the Fiji Police Force. She described this move as indicative of significant shortcomings in financial management.

This situation comes on the heels of a previous fund reallocation of $105.2 million in July aimed at meeting additional financial requirements across several government agencies and initiatives. Kumar stated that this pattern signifies a lack of effective oversight within the Government, and expressed concerns that the Ministry of Finance is having difficulty ensuring that ministries and departments adhere to their approved budget limits, raising troubling questions regarding the government’s budgeting and expenditure management.

“While such reallocation is allowed under the Financial Management Act, it highlights deeper issues like inadequate planning, insufficient budget appropriations, and poor expenditure oversight,” Kumar remarked. She emphasized that the public should be informed about how these excess spending incidents occur and what preventative measures, if any, are in place to stop government entities from surpassing their budget limits.

As a former Minister in the FijiFirst Government, Kumar pointed out that while the latest fund redeployment highlights the Ministry of Education and the Fiji Police Force, the earlier July reallocations impacted a broader array of government agencies and projects. She noted that during the budget announcement, the Finance Minister revealed new financial year allocations without detailing spending from the previous year.

“The Opposition has persistently called for transparency and has sought clarification on a $42 million transfer from capital projects, but our inquiries were dismissed by the government in the last business committee meeting,” she stated.

“We urge the Minister for Finance to provide a comprehensive report on all overspending by government agencies and projects, along with justifications for these expenses. The Government’s claims of accountability and transparency are under intense scrutiny.”

Kumar questioned why the trend of overspending continues to occur, pointing out that there have been no disasters or emergencies to warrant such additional expenses. She concluded by asserting that the current situation reflects inadequate budget planning and ineffective control over spending by government agency leaders, asserting that the people of Fiji deserve better fiscal management and increased accountability from their Government.

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