WITH only 18 per cent of the budget allocated to capital expenditure, Fiji cannot afford to get its “major projects wrong”.
Speaking at the Dialogue Fiji National Budget Forum on Saturday Nadi Chamber of Commerce and Industry board member Dr Ahmed Shariff said Fiji had already spent millions of dollars on incomplete projects.
“Of the total $4.87billion budget, approximately $3.99billion is operating expenditure, while around $876million is allocated for capital expenditure,” he said.
“At the same time, the deficit is approximately $1billion and public debt is projected to reach $12.6billion or 84.8 per cent of GDP. This means that many of the projects we approve today will be paid for over many years.”
He said a ribbon-cutting ceremony may last one day, but the loan repayments may remain with the future generation for decades.
“Fiji has already spent millions of dollars on projects that were incomplete, underused, poorly maintained or unable to deliver the benefits originally promised.
“We cannot continue creating white elephants while borrowing to fund them.
“With such limited capital allocation, every dollar must create an asset that works, a service that lasts and a measurable return for the country. This is particularly important in health.”
Dr Shariff said the Ministry of Health received approximately $477million in the 2026-2027 National Budget.
“The budget also provides $120million for the Lautoka and Ba hospitals – public private partnership, $4.7million for dialysis subsidies, $5.2million for upgrading and maintaining health facilities.
“These investments are necessary. Fiji must improve access to advanced medical care. However, we must not mistake the purchase of expensive equipment or the construction of a building for the creation of a functioning health service.”
