Fiji is moving back to an unsustainable debt position, says former Reserve Bank of Fiji governor and Unity Fiji party leader Savenaca Narube. He warned that the projected $1 billion fiscal deficit would only worsen the country’s financial outlook.
Responding to the 2026-2027 National Budget, Mr Narube said Government should have aimed for a much smaller deficit.
“We are already way above what everybody considers to be a prudential debt level,” Mr Narube said.
He said Fiji’s debt had fallen under the Coalition Government before it beg to rise again.
“Before FijiFirst, it was at 45 per cent of GDP. FijiFirst brought it up to over 90 per cent, and under this government, the debt had fallen to 82 per cent and now it’s rising again to 87 per cent because of the deficit.
“The higher the deficit, the higher in the increase in debt.”
He said Government had very limited room to continue borrowing.
“It’s not sustainable, so that restricts how much we can spend, restricts the deficit.”
Mr Narube said he had expected a much lower fiscal deficit.
“I was hoping the deficit would be around 2 per cent or 3 per cent of GDP, half of what it is.”
He warned that Fiji’s debt trajectory placed the country in a vulnerable economic position.
“So, to me, we are in a very unsustainable debt position.”
Parliament is expected to discuss and debate the 2026-2027 National Budget later this month before it is officially passed.
