FRCS digitization funding questioned

Fiji Revenue and Customs Service's (FRCS) commitment to digitization faces scrutiny following a significant reduction in its digital systems budget. The Standing Committee on Economic Affairs reviewed the FRCS 2024–2025 Annual Report, where Deputy Committee Chair Premila Kumar highlighted a 48.2 percent decrease in expenditure for computer maintenance, software licenses, and other digital transformation-related areas. Kumar questioned how this budget cut aligns with FRCS's stated digitization priorities. "So, if there is a reduction in the budget for digitisation, but on the other hand, we see that FRCS says, even the Chair’s report says, that digitisation is a main priority for FRCS. So, if you can kindly explain this sharp cut in the budget," she stated. She also raised concerns about potential impacts on cybersecurity, system reliability, and critical digital infrastructure. Responding to the committee's concerns, FRCS Chief Executive Udit Singh clarified that the drop in IT spending does not signify a reduced commitment to digitization. Singh explained that the decrease was primarily due to a substantial one-off $5 million license-related payment made in the prior financial year. He assured the committee that digitization remains a high priority for FRCS. Singh further elaborated on FRCS's ongoing digitization efforts, including plans to develop a data warehouse. This initiative aims to consolidate various information repositories into a single system, enabling an intelligence layer to enhance digitization capabilities and improve risk-based taxpayer management. The service is also focused on strengthening its capacity to manage taxpayers effectively through data analysis.

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So, if there is a reduction in the budget for digitisation, but on the other hand, we see that FRCS says, even the Chair’s report says, that digitisation is a main priority for FRCS. So, if you can kindly explain this sharp cut in the budget.