[Photo: FILE]

Opposition Member of Parliament Jone Usamate has warned that Fiji is facing a fiscal crisis, arguing that the 2026-2027 National Budget fails to address rising government debt and growing expenditure despite being presented as “A Responsible Budget for a Sustainable Future.”

Speaking during the Budget debate in Parliament, Usamate says while the Budget acknowledged the need for fiscal discipline, it did not go far enough in tackling what he described as the country’s deteriorating financial position.

“The budget tries to do some of that, but it does not go far enough. It tries to be responsible, but it is not responsible enough. It tries to be the catalyst for a sustainable future, but it does not do so.”

Usamate said Fiji was grappling with several challenges, including rising living costs driven by global fuel prices, increasing freight and fertiliser costs, as well as social issues such as drug abuse, HIV/AIDS, non-communicable diseases and mental health.

However, he argued the country’s most pressing concern was its fiscal position.

“This is the crisis that is here right now. It’s a crisis of how we will manage our future.”

The Opposition MP said the government would record a gross deficit of about $1.481 billion under the new Budget while government revenue was projected to decline.

He argued that continued borrowing to finance expenditure was unsustainable and warned Fiji would find it increasingly difficult to refinance its debt if spending was not brought under control.

“We now have to keep borrowing at this level just to keep the expenditure level the same. We’ll have to do this for a long time because revenue will not catch up.”

Usamate also criticised the composition of government spending, claiming that around $4 billion of the approximately $4.8 billion Budget was allocated to operational expenditure rather than investments that generate economic growth.

“That is the elephant in the room. “We need to find that unnecessary expenditure and get rid of it so that we can grow as a country.”

According to Usamate, there were only two ways for Fiji to improve its fiscal position: growing the economy and reducing expenditure.

Usamate rejected the Budget, saying it failed to make the difficult decisions needed to restore the country’s finances.

“This is not a responsible budget. It is a budget of fiscal exhaustion… It is not a sustainable budget. It is a cowardly budget because it does not address the elephant in the room.”

The Coalition Government has defended the 2026-2027 National Budget as one that balances fiscal responsibility with continued investment in essential services, infrastructure and economic growth while responding to ongoing global economic pressures.