Opposition Leader Inia Seruiratu has sharply criticized the 2025–2026 National Budget, labeling it as unsustainable and devoid of long-term vision. He voiced his concerns during a parliamentary session, highlighting that the high debt-to-GDP ratio threatens to stifle private investment by elevating interest rates, which could ultimately limit the capital accessible for business expansion.
Seruiratu specifically addressed the budget’s operating-to-capital expenditure ratio, arguing it demonstrates a preference for immediate needs rather than long-term growth strategies. He expressed alarm over low capital investments, warning that the neglect of essential infrastructure could harm future economic development and the overall standard of living.
Furthermore, he raised issues about the government’s increasing reliance on third-party financial support, cautioning that this dependence is unsustainable, especially as donor funding is dwindling in the wake of the COVID-19 pandemic. Seruiratu accused the government of failing to adhere to prudent financial management practices, suggesting that expenditures are dictating revenue aims instead of the reverse, a move he deems politically motivated.
Highlighting the ongoing struggles of nine critical economic sectors, including construction and manufacturing, he pointed out that the absence of targeted recovery plans and the rise in concession rates have exacerbated their plight. While tourism is experiencing notable growth, other sectors remain stagnant, leading to a lopsided recovery and an escalating budget deficit.
In a related critique, Opposition Member of Parliament Sachida Nand echoed concerns about the budget’s inadequacy in promoting investment. He noted that banks report high liquidity due to a reluctance among individuals to borrow and invest, coupled with a troubling absence of incentives for foreign investment, which remains essential for Fiji’s economic resurgence.
Nand also remarked on a shift in the language surrounding national debt, observing a transition from discussions about nominal debt to focusing on the debt-to-GDP ratio. He emphasized the necessity for the government to prioritize new infrastructure projects rather than solely maintaining existing ones.
With Deputy Prime Minister and Minister for Finance Professor Biman Prasad expected to respond soon, the ongoing dialogue surrounding the budget underscores the urgent need for strategies that address both immediate financial challenges and foster long-term growth.
The budget discussion highlights the critical nature of economic recovery and the need for strategic planning to ensure that all sectors of the economy benefit from recovery efforts. With constructive critique and a push for change, there remains hope for fostering an environment where sustainable growth and investment can thrive.
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