WESTPAC Fiji has taken a cautious outlook on Government’s decision to ease some controls on public spending in its proposed budget for the 2025-2026 financial year. The national budget, presented in Parliament last month by Deputy Prime Minister and Minister for Finance Prof Biman Prasad, proposes to remove the “under requisition” status from expenditure items, designed to accelerate the spending processes.
Westpac Fiji, in its latest Westpac Wave publication, in which it presented its review of the budget, said while this was a pilot undertaking by the Government, it posed higher risks in budget execution.
“According to the MOF (Ministry of Finance), this change is intended to ‘ensure operational efficiency and reduce administrative barriers’ by shifting funding management responsibilities directly to the respective ministries and departments,” wrote Westpac Wave author and Westpac Fiji senior economist Shamal Chand.
“Previously, expenditures marked ‘under requisition’ required MOF approval, which helped enhance accountability and prioritise public funds.
“However, this process often led to significant delays due to the time required for MOF staff to conduct due diligence.”
Mr Chand said with the removal of “Requisition to Incur Expenditure” policy and fund allocation shifted to permanent secretaries of individual Ministries, eliminating the need for MOF approval, the risk is that it could lead to full utilisation of budgeted expenditures by July 2026, thereby increasing fiscal pressure in the absence of centralised oversight.
“While this reform is currently in a pilot phase, with controls in place for travel, maintenance and supply purchases, it has the potential to increase pressure on public finances if not carefully managed.”
Note: This article was first published on the print version of the Fiji Times dated July 7, 2025
