Dialogue Fiji executive director Nilesh Lal has questioned the government’s proposal to revert the national fiscal year back to a January–December cycle, warning that the move appears driven more by politics than practical governance.
Prime Minister Sitiveni Rabuka announced in his New Year’s address yesterday of this proposed change to the fiscal year.
Lal said many well-functioning systems intentionally avoid December financial year-ends because the month is dominated by holidays, reduced productivity and slower institutional decision-making.
“Reversing the government fiscal year back to January–December would be another example of reversal without a clear or compelling rationale,” he said.
“December is a holiday-heavy month when productivity drops, institutions slow down, and decision-making stalls.”
He pointed to international practice to support his concerns.
“Australia and New Zealand operate on a July–June fiscal year. The United States federal government uses October–September,” Lal noted.
“The logic is consistent across jurisdictions: avoid year-end closures during holiday periods. Improve planning, execution, and accountability.”
Lal questioned what benefit Fiji would gain from the shift and cautioned against policymaking framed around nostalgia rather than efficiency.
“Wanting to return to the 1990s as though it was some golden era of governance ignores one basic reality — the world has moved on. Public finance management has evolved. Governments are expected to learn, adapt, and improve. Not rewind out of spite.”
Lal said reforms should be motivated by measurable improvements to fiscal management.
“Change should mean doing better, not doing the opposite for the sake of it,” he said.
