Narube says debt burden squeezing essential services

Almost half of every government dollar is now going towards debt repayments, leaving just 55 cents to fund essential services such as health, education, law and order, according to Unity Fiji Party leader Savenaca Narube.

Responding to the 2026-2027 National Budget delivered last week, the former Reserve Bank of Fiji governor said the $18.98 billion budget, themed "A Responsible Budget for a Sustainable Future", was "neither responsible nor sustainable".

"The higher the debt rises, the tighter that squeeze becomes," Mr Narube said.

He said national debt could climb towards 90 per cent of gross domestic product (GDP), a level he said the International Monetary Fund (IMF) had already flagged as unsustainable.

Mr Narube urged the Government to consolidate spending rather than expand it.

"This shifts the responsibility of adjustment to future generations," he said.

He also warned that an El Niño-driven cyclone season next year could hit an economy with little fiscal buffer remaining.

Mr Narube criticised the $96.3 million allocated to the sugar industry, saying it amounted to "managing the decline of an industry" rather than diversifying the economy.

He also described the $3 million allocated to the First Home Ownership Programme as a "token response" to Fiji's housing crisis.

PM defends budget

Prime Minister Sitiveni Rabuka defended the budget on Tuesday, saying it reflected the realities of a difficult global economic environment.

"It was a difficult budget, particularly as we go through this difficult time in international uncertainties, very expensive lines of communication and logistics affecting everyday cost of living," Mr Rabuka said.

"Unfortunately, we had to be realistic, but it is a budget that was well thought out so that it carries the burden of the nation."