Operating bill exceeds Fiji’s 2022 budget, says former Finance Minister

Fiji’s operating expenditure has risen to $3.9 billion — exceeding the country’s entire $3.7 billion national budget in 2022 — leaving little room for the Government to invest in roads, hospitals and other job-creating infrastructure projects.

The claim was made yesterday by former Finance Minister Aiyaz Sayed-Khaiyum during the State of the Fijian Economy Dialogue at the Grand Pacific Hotel in Suva, organised by Dialogue Fiji.

Mr Sayed-Khaiyum said the national budget had increased from $3.7 billion in 2022 to $4.8 billion today, with most of the increase absorbed by day-to-day Government operating costs.

“The total operating expenditure of the current budget is more than the entire budget in 2022,” he said.

“So, it goes to show where the priorities are.”

Civil service growth

Mr Sayed-Khaiyum said the civil service had grown from about 34,000 employees to 42,000, including staff of the Fiji Revenue and Customs Service and the Water Authority of Fiji, pushing the Government wage bill from $1 billion to $1.3 billion.

However, figures released yesterday by the Ministry of Civil Service show that 38,300 civil servants are currently on the Government payroll.

Asked what he would do if reappointed Finance Minister, Mr Sayed-Khaiyum said he would reduce operating expenditure and redirect assistance to those most in need.

“Cut back operating expenditure drastically. Take away some of the benefits given to wealthy companies. Provide targeted assistance to the marginalised,” he said.

He also called for the immediate introduction of a national identification card system to enable the Government to deliver targeted assistance to vulnerable families.

Government response

Former Deputy Prime Minister and former Minister for Finance Professor Biman Prasad defended the Government’s economic record, saying the debt-to-GDP ratio had fallen from 91.8 per cent in 2022 to 79.7 per cent by July 2025, while Government revenue had increased for three consecutive years.

“We undertook tax reforms, revenue reforms and policy reforms,” Mr Prasad said.

Questions sent to Prime Minister Sitiveni Rabuka seeking comment on concerns about rising operating expenditure, and whether the 2026-2027 National Budget would reprioritise spending, remained unanswered.