Professor Biman Prasad and Defence Minister Inia Seruiratu.

Defence Minister Inia Seruiratu has hit out at NFP Leader saying he should not misguide the Fijian people.

Seruiratu says Professor Biman Prasad is twisting the data to suit his own opinion.

Prasad in his budget response had said that in the New Year, the government must repay $1.2 billion in loans and interest.

He has also stated that every month next year, the government must raise $100 million, just to pay off loans.

Seruiratu challenged Professor Prasad to be truthful and tell the people that half of the debt being paid by the Bainimarama government was a result of the loan taken by the former SDL government in 2006.

Seuiratu says this debt has been rolled over by the current government twice.

“But he will not say that, after all, to do so it would be to put SODELPA or Rabuka down. If we were to exclude the debt by former SDL government the debt serving is more like $50m.”

He highlighted that national debt is an accumulation of debt across many years of different governments.

Seruiratu says the Bainimarama government has been clearing up the mess of previous politicians who were focused on short term gains.

“The Bainimarama government has been paying up the loans taken by the Alliance government, NFP and the Fiji Labour Party governments. The SVT and the SDL governments. Not to forget the excessive interest rates charges in these loans. When the Bainimarama government took over we inherited over $2.5b of the previous governments debts.”

The Minister also clarified that $430m of debt serving has already been saved and sitting in government sinking fund.

He says this money is already saved in the current financial year but will be paid in the new financial year.