The Government achieved a 95.4 per cent execution rate for its revised capital budget in the 2024–2025 financial year, spending $1.057 billion of the $1.108 billion allocated after in-year adjustments.
The figures were revealed in a written parliamentary response tabled by Minister for Finance, Commerce and Business Development Esrom Immanuel in response to a question from Opposition MP Premila Kumar.
Immanuel said the original capital budget for the financial year was $1.199 billion, with actual expenditure amounting to 88.1 per cent of the initial allocation.
The spending included $99.6 million on capital construction, $75.3 million on capital purchases and $882 million on capital grants and transfers.
While noting that capital expenditure implementation has improved in recent years, the Minister acknowledged that project delivery continues to be affected by procurement delays, project readiness issues, land acquisition matters, contractor capacity constraints and shortages of technical personnel.
To improve execution rates, the Government has introduced a number of reforms aimed at accelerating project delivery.
Among the changes is the removal of the “R” designation from the Budget Estimates, eliminating the need for ministries to seek additional approval from the Ministry of Finance before accessing certain approved funds.
Immanuel said the move is intended to reduce administrative bottlenecks, improve operational efficiency and give ministries greater flexibility and accountability in delivering projects.
The Government is also prioritising implementation-ready projects by ensuring project designs, procurement plans, approvals, land matters and implementation arrangements are substantially completed before funding is allocated.
The Ministry has also strengthened budget monitoring and performance assessments to identify implementation challenges earlier and allow timely intervention.
Another significant reform is the review of the Procurement Regulations and Procurement Guidelines. The revised framework, currently awaiting final legal clearance, proposes increasing the procurement threshold requiring Government Tender Board approval from $50,000 to $100,000, allowing ministries and agencies to complete lower-value procurements more efficiently while reducing delays.
Additional measures include strengthening the capacity of ministries through financial management and project implementation training, improving expenditure controls through revised budget reallocation arrangements, and continuing to review the capital portfolio to ensure funding is directed towards projects capable of being completed within the financial year.
The Minister said the reforms are designed to improve the quality and timeliness of capital expenditure, strengthen accountability and ensure public investments deliver greater benefits for all Fijians.
