Government MP Professor Biman Prasad has mounted a high‑profile defence of the coalition’s economic strategy in Parliament, saying recent borrowing and tax changes were necessary to finance development and improve public services across Fiji. Prasad told MPs that reforms in the 2023–2024 national budget lifted government revenue and enabled a major expansion of social and development programs, while sustained investment in infrastructure would underpin longer‑term growth.
Responding to opposition criticism over the scale of borrowing and recent tax measures, Prasad pointed to increased spending on social welfare, agriculture support, education and scholarships. “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,” he said in Parliament, arguing the measures directly benefited households and communities.
Prasad defended the government’s decision to borrow, saying those funds were channelled into “critical infrastructure projects” that include improvements to water systems, schools, hospitals and other economic infrastructure. He framed borrowing as an investment to raise productivity and service delivery rather than as mere consumption, insisting that infrastructure upgrades would support private sector activity and job creation.
The ministerial backbencher also said Fiji has now recorded three consecutive years of economic growth under the coalition government, a performance he argued has helped stabilise public finances and trim the country’s debt burden relative to the size of the economy. “That growth has led to the reduction in the debt‑to‑GDP ratio to about 79 percent,” Prasad told Parliament, citing the government’s fiscal trajectory.
That claim sits alongside recent independent reporting showing government debt stood at 73.8 percent of GDP at the close of October 2025, with projections at the time pointing to a rise toward roughly 79.8 percent by the end of the 2025–2026 financial year. Officials and analysts routinely note that debt‑to‑GDP ratios can vary depending on the reporting date, exchange rate movements and the timing of borrowing, making comparisons sensitive to method and chronology.
Prasad finished by reiterating the coalition’s long‑term objectives, referencing the National Development Plan and Vision 2050 as blueprints for transforming Fiji into a high‑income nation. He said the strategy prioritises sustained economic growth, improved infrastructure, higher‑quality jobs and better wages, framing current fiscal choices as part of a multi‑decade effort to raise living standards.
The exchange in Parliament is the latest chapter in an ongoing debate over the pace and prudence of government borrowing and revenue reform. The discussion comes as the government pursues complementary financial initiatives — including efforts to broaden access to credit for micro, small and medium enterprises — and as critics continue to press for clearer timelines and accountability around public investments and debt management.
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