Opposition slams Budget as 'fiscally irresponsible'

Opposition Member of Parliament Premila Kumar (pictured) rejected the 2026-2027 National Budget, describing it as fiscally irresponsible.

She argued that rising public debt, a higher-than-expected budget deficit and slowing economic growth contradict Government’s theme, “A Responsible Budget for a Sustainable Future”.

In pointing to the projected budget deficit of seven per cent of gross domestic product (GDP) Ms Kumar said it had increased despite earlier forecasts of four and five per cent.

“Only a year ago, Parliament was told that the Budget deficit for the 2026-2027 financial year would be 4 per cent of GDP and, 5 months ago, the Medium-Term Fiscal Strategy revised that figure to five per cent.

“Today (yesterday), Parliament is being asked to approve a deficit of seven per cent of GDP. So how is this a responsible budget when the deficit is increasing?

“What objective standard is the minister applying to call this a responsible budget? Or is ‘responsible’ simply a convenient label designed to disguise the government’s poor fiscal record?”

Ms Kumar also claimed public debt would increase by about $3.45 billion by the end of the government’s term because it continued to rely on borrowing.

“This Budget alone increases public debt by $1.4 billion and, by the end of this government’s term in office, Fiji’s public debt is projected to have increased by approximately $3.45 billion,” she said.

“That is more than what the previous Government borrowed during the COVID-19 pandemic to protect lives and keep the economy afloat.

“Public debt is rising because this Government keeps borrowing to sustain itself. Fijians are paying more in taxes to fund a bigger Government while continuing to wait for basic infrastructure and essential services.”

Ms Kumar argued that 82 per cent of Government expenditure had been allocated to salaries, wages and utilities, while only 18 per cent had been set aside for capital investment.

“In the last financial year, capital expenditure was budgeted at $926.6m, later revised to $792m, with $135m unutilised. In this Budget, capital expenditure has been reduced to $876m, with little time remaining to deliver these projects.”

Government revenue is no longer sufficient to cover operating expenses, pointing to a negative operating cash flow.

“The challenge facing Fiji is restoring fiscal discipline by correcting policy choices that have weakened the country’s financial position,” she said.

“A responsible government borrows when there is a clear economic return.”

Ms Kumar said Government had abandoned its earlier promises to reduce debt and spending and urged it to acknowledge the country’s fiscal challenges and present a credible plan to restore fiscal discipline and rebuild fiscal resilience.