Opposition Whip Lynda Tabuya says the national budget is one mired in austerity measures.

The vocal MP maintains that commercial banks have tightened their lending and interest rates have increased in response to the global economic slowdown.

“This is an Austerity Budget, an austerity budget is a budget defined as policies that aim to reduce government budget deficits through spending cuts, tax increases or a combination of both.”

As the first MP to highlight a liquidity issue which was denounced by the Governor of the Reserve Bank, Tabuya continues to pronounce financial hardships.

”Now the facts are these, the interest rates have gone up, interests rates have gone up, aggressive term deposit drives by the banks to raise cash, loan settlements have been postponed in some cases.”

A sentiment shared by her colleague Niko Nawaikula who laments the budget cutbacks are a reflection of a government strapped for cash.