Unity Fiji party leader and former Reserve Bank of Fiji governor, Savenaca Narube, has criticized the 2024-2025 National Budget, stating it fails to inspire the confidence required for sustainability and stability.
Narube described the budget as average and uninspiring, noting that while there were positive moves, such as the increase in minimum wages and sound medium-term policies, there were no significant economic transformations to lift the economy to a higher, stable level, or to restore fiscal balance sustainably.
Discussing economic growth, Narube emphasized that a 5 percent medium-term average growth rate is achievable. He pointed out that the budget mentions the need to double the medium-term growth rate from 2.5 percent to 5 percent and stated that this goal must be prioritized to achieve a sustainable debt position. However, he argued that “business as usual” approaches, as reflected in the current budget, will not achieve this growth.
Narube acknowledged new investments in tourism and support for the manufacturing sector but stressed the importance of diversifying into resource-based sectors, noting that current subsidies and grants are inadequate to fully develop these resources.
On fiscal reforms, Narube expressed approval of the Government’s plan to reduce the debt-to-GDP ratio to 60 percent by 2040 but remarked that 16 years is too long. He criticized the budget for failing to include necessary fiscal reforms that would expedite reaching a sustainable debt level. He suggested bringing the budget deficit below 3 percent of GDP, reducing the central government size to 28 percent of GDP from the current 32 percent, and prioritizing expenditure reforms.
Narube pointed out inefficiencies in project management and the high costs associated with infrastructure projects. He highlighted that operating and capital transfers to State-owned Enterprises (SOEs) such as the Fiji Roads Authority account for 43 percent of total expenditure, questioning the value for money of these transfers and the absence of SOE reforms in the budget.
He also referred to suggestions for developing a new travel policy and assessing vehicle leasing against outright purchase, noting that no changes were included in the budget despite public demand.
On social priorities, Unity Fiji commended the Government for prioritizing housing. However, Narube argued that the budget does not adequately address drug abuse among children, advocating for a stronger focus on prevention and partnerships involving government, faith-based organizations, and NGOs.
Narube expressed concern over the budget’s lack of measures to combat corruption, such as strengthening the independence of watchdogs like FICAC and the Auditor General, improving whistleblower protection laws, and allocating more resources to investigate corruption allegations.
Lastly, Narube highlighted the issue of trust and confidence in the Government. He pointed out recent political developments and decisions, such as the handling of the Melbourne scandal involving two ministers, the increase in parliamentarians’ salaries, and unmet campaign promises, which he said have eroded public trust.
Narube concluded that, like the FijiFirst party, the Coalition Government is repeating the mistake of taking the people for granted and questioned the process behind the recent parliamentary pay increases and the credibility of conflicting public statements.
These critiques and recommendations underscore Unity Fiji’s call for significant economic transformation and fiscal reform to ensure a sustainable and stable future for the country.