Opposition MP Premila Kumar has called on Finance Minister Professor Biman Prasad to provide a comprehensive account of overspending by government agencies and projects, along with justifications for these expenditures.
Her remarks follow the government’s announcement of a fund reallocation within the 2023/2024 National Budget to address a $7.9 million overspend by the Ministry of Education and the Fiji Police Force.
Professor Prasad, however, stated that overall spending for the fiscal year 2023/2024 remained within the total appropriation approved by Parliament, with actual spending reported at approximately $4.1 billion, below the budgeted $4.3 billion.
Mrs. Kumar criticized this as a significant failure in financial management, raising doubts about the government’s commitment to accountability and transparency. She noted that while reallocations are allowed under the Financial Management Act, they reveal deeper issues, including inadequate planning, insufficient budget provisions, and ineffective expenditure controls.
She emphasized that the public has the right to understand how overspends occur and what measures are taken to prevent government agencies from exceeding their budgets, suggesting a lack of effective monitoring within the government.
In response, Professor Prasad denied the notion of overspending at the government level as presented by Mrs. Kumar, asserting that the overall net deficit for the previous fiscal year was 3.3%, below the 4.8% that had been budgeted. He attributed this performance to strong tax revenue collections and meeting revenue forecasts.
He explained that reallocations and redeployments are standard practices within the budget system, allowing for flexibility in execution while adhering to legal protocols, including Cabinet approval for such reallocations.
The recent redeployment was necessary to address funding shortages in critical areas, with the Ministry of Education facing a $1.8 million shortfall for teacher salaries and allowances across various education levels, and the Fiji Police Force encountering a $6.1 million shortfall for police officer salaries and allowances.
Professor Prasad asserted that the Coalition Government has been transparent in its decision-making processes, including public disclosures on all Cabinet decisions, and criticized Mrs. Kumar’s comments as hypocritical, urging her to reflect honestly on the previous government’s management during her tenure.