Opposition Member of Parliament 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 call comes in response to the government’s announcement regarding the reallocation of funds from the 2023/2024 National Budget to address a $7.9 million overspend by the Ministry of Education and the Fiji Police Force.
Professor Prasad responded by stating that the overall expenditure for the fiscal year 2023/2024 remained within the total appropriations authorized by Parliament, with actual spending around $4.1 billion, which is less than the budgeted amount of $4.3 billion.
Kumar argued that the situation reflects a significant failure in financial management and raises serious doubts about the government’s commitments to accountability and transparency.
She emphasized that while such reallocations are allowed under the Financial Management Act, they reveal underlying problems, including the government’s inadequate planning, insufficient budget allocations, and ineffective expenditure control. “The public has the right to understand how these overspends happen and what, if any, strategies are in place to prevent government agencies from going over budget,” she said.
Kumar highlighted that the issues indicate poor budget planning and a lack of effective control by heads of government agencies, asserting that Fijians deserve better financial management and more accountability.
In contrast, Professor Prasad asserted that there was no government-wide overspending as Kumar suggested. He noted that the overall net deficit was approximately 3.3 percent for the last fiscal year, which is lower than the anticipated 4.8 percent.
“This performance is attributable to strong tax collections and the government meeting its tax revenue forecasts. Virements and redeployments have always been integral to our budgeting system, allowing operational flexibility while adhering to a legal framework to ensure proper management, which includes Cabinet approval for fund reallocations,” he explained.
He clarified that the recent fund reallocation was necessary to address funding shortages as both the Ministry of Education and the Fiji Police Force provide essential services. The Ministry faced a $1.8 million shortfall for teachers’ salaries and allowances, while the Police Force needed an additional $6.1 million for officer salaries and allowances.
Professor Prasad stated that the Coalition Government is transparent in its decision-making and openly announces all Cabinet decisions. He criticized Kumar for her accusations of poor financial management, urging her instead to reflect on the challenges faced during her tenure in the previous government.