'Australia’s $47m grant to Fiji not reserved solely for fuel relief'

Australia’s AUD$30 million (FJD$47 million) grant to Fiji will not be ring-fenced specifically for fuel relief but will instead be pooled into the Government’s consolidated fund and allocated according to broader national priorities.

Minister for Finance Esrom Immanuel made the clarification yesterday in response to Opposition MP Premila Kumar, who questioned how the funding would be used and what accountability mechanisms were in place to ensure it directly assisted Fijians affected by the fuel crisis.

“It will not be directly used for direct fuel support,” Mr Immanuel told Parliament.

“But it will be part of the whole government funds and will be utilised based on priorities, including fuel assistance.”

The funding forms part of an amendment to a multi-year general budget support arrangement between Australia and Fiji that began in 2024, increasing Australia’s total contribution from AUD$120 million to AUD$150 million.

Access to the funding is tied to Fiji meeting agreed reforms in public financial management and economic resilience.

Ms Kumar questioned what safeguards were in place to prevent the money from being used to address budget shortfalls rather than directly supporting ordinary Fijians.

General budget support — unlike project-specific funding — allows governments flexibility in allocating funds, with accountability measured through broader reform benchmarks rather than direct expenditure tracking.

The Government has already redirected $56 million in the 2025-2026 National Budget to help families and businesses cope with the crisis, including measures to maintain affordable bus fares and a temporary 50 per cent increase in social welfare payments.

Mr Immanuel said the Australian grant strengthened Fiji’s overall fiscal position and helped preserve the Government’s ability to maintain essential services during the ongoing fuel and cost-of-living crisis.