Opposition MP Premila Kumar has called on Finance Minister Professor Biman Prasad to provide a detailed account of all overspending by government agencies and projects, along with justifications for these expenses. Her remarks come in response to the government’s announcement of a reallocation of funds within the 2023/2024 National Budget to address an overspend of $7.9 million by the Ministry of Education and the Fiji Police Force.
In defense, Prof Prasad indicated that the total expenditure for the fiscal year 2023/2024 remains within the budget approved by Parliament, stating that actual spending amounted to approximately $4.1 billion, which is below the budgeted figure of $4.3 billion.
Kumar emphasized that this situation reveals serious shortcomings in financial management and calls into question the government’s commitment to accountability and transparency. She stated that while such fund reallocations are allowed under the Financial Management Act, they highlight deeper issues such as inadequate planning, insufficient budget allocations, and ineffective expenditure oversight.
She stressed that the public has a right to understand how these overspending incidents occur and what steps, if any, are taken to prevent agencies from exceeding their budgets. Kumar argued that this scenario illustrates a lack of robust monitoring processes within the government.
Prof Prasad countered Kumar’s assertions, claiming there was no overall government overspending as she suggested. He pointed out that the actual net deficit for the last fiscal year was about 3.3 percent, which is an improvement from the projected 4.8 percent.
He attributed this positive outcome to strong tax revenues and asserted that budget reallocations are a standard practice within the budget system, allowing operational flexibility while complying with legal frameworks that include Cabinet approval for fund reallocations.
The recent reallocation exercise was explained by Prof Prasad as necessary to cover a $1.8 million funding gap for the Ministry of Education, which relates to salaries and allowances for teachers in early childhood, primary, and secondary schools, as well as a $6.1 million shortfall for the Fiji Police Force concerning officer salaries and allowances.
He concluded by highlighting the Coalition Government’s transparency in decision-making, contrasting it with the lack of detail provided by the previous government regarding fund reallocations and other Cabinet decisions. Prof Prasad criticized Kumar’s claims of poor financial management as hypocritical and urged her to acknowledge the failings of the government in which she was involved.