Aerial shot of Suva City. [File Photo]

The government’s 2025–2026 budget is built on shaky revenue projections, according to former Reserve Bank Governor and Unity Fiji Party Leader Savenaca Narube.

He warns the optimistic tax forecast puts Fiji at financial risk.

Narube says the government is repeating the former administration’s approach, spending first then scrambling to raise funds.

He said VAT revenue was expected to grow even as the rate drops from 15 to 12.5 percent.

Former Reserve Bank Governor and Unity Fiji Party Leader Savenaca Narube. [File Photo]

That, he states does not add up.

Narube said direct taxes was projected to rise by seven percent and fees by 14 percent despite a slowing economy.
He warns of trouble if revenue targets fail.

A shortfall, he said would mean more borrowing, and taxpayers will eventually foot the bill.

“The VAT drop is political. In year one, they hiked it to 15 percent . Now it’s down to 12.5 percent. They’ll likely cut it to nine percent just before elections.”

People, according to Narube may not even feel the relief.

Narube doubts prices will fall, even with the promised monitoring of shops.

He believes businesses may benefit more than consumers.

FBC News has sent questions to Finance Minister and Deputy Prime Minister Professor Biman Prasad regarding Narube’s criticisms but has yet to receive a direct response.

However, during a recent post-budget forum, Professor Prasad addressed concerns about the fiscal strategy.

He defended the government’s approach, emphasizing that the current deficit is deliberate and designed to fund key sectors like infrastructure, education, and health within a clear national development plan.

Prof Prasad pointed out that the government inherited a 90 percent debt-to-GDP ratio, which has since been reduced to 77.5 percent, with projected economic growth expected to support debt sustainability.

The Minister also stressed the importance of viewing the budget within the broader framework of the 2050 national development vision, which prioritizes timely implementation and monitoring.

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