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🇫🇯 Fiji /Economy & Trade

Kumar questions government’s ‘responsible budget’ claim

From FBC News · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Opposition MP Premila Kumar criticized Fiji's 2026/27 National Budget, citing rising public debt and slow economic growth.
  • Kumar stated the government plans to borrow an additional $1.4 billion, bringing total borrowing to $3.4 billion, much of which funds daily expenses.
  • She questioned the budget's spending priorities, with 82% allocated to operational costs and only 18% to capital investment, warning of worsening fiscal challenges.

Opposition Member of Parliament Premila Kumar has raised significant concerns regarding Fiji's 2026/27 National Budget, challenging the government's claims of fiscal responsibility. Kumar highlighted rising public debt and slowing economic growth as major issues within the budget proposal.

During the parliamentary budget debate, Kumar pointed out the government's intention to borrow an additional $1.4 billion. This borrowing would escalate the total debt accumulated over the government's term to approximately $3.4 billion. She expressed concern that a substantial portion of this borrowing is earmarked for funding day-to-day government operations rather than long-term development projects.

Kumar also scrutinized the government's spending priorities, noting that 82% of the total expenditure is allocated to salaries, wages, utilities, and general government operations. Conversely, only 18% is designated for capital investment, a share she predicts will continue to decline as debt increases. She questioned the government's strategy for economic growth, particularly in light of an $8.9 billion investment pipeline, stating that "a pipeline does not grow the economy; actual investments, actual construction, actual production, and actual job creation do."

Warning that Fiji's fiscal challenges are likely to intensify unless the government alters its economic course, Kumar declared her opposition to the 2026/2027 national budget. She urged a change in economic direction to address the mounting debt and stimulate genuine economic expansion.

Pipeline figures look great, but a pipeline does not grow the economy; actual investments, actual construction, actual production, and actual job creation do.

— Premila KumarKumar questioned the government's focus on an investment pipeline versus tangible economic activity.
DistantNews Editorial

Originally published by FBC News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.