Opposition MP has launched a strong critique of the Coalition Government’s economic performance, arguing that recent assessments by the Reserve Bank of Fiji and the International Monetary Fund highlight serious concerns about the country’s economic direction.
In a statement following the State of the Fijian Economy Dialogue organised by , Ms Kumar said the findings presented by Reserve Bank Governor and the IMF should serve as a wake-up call for the Government.
She pointed to the Reserve Bank’s decision to revise Fiji’s 2026 economic growth forecast from 3.0 per cent to 1.5 per cent and warned about rising inflation, which increased from negative 3.8 per cent in September 2025 to 3.9 per cent in May this year, with projections of more than 6 per cent by the end of 2026.
“These are not opposition talking points. These are the findings of Fiji’s own central bank, delivered on a public platform,” Ms Kumar said.
She said the IMF’s latest Article IV Consultation echoed similar concerns, highlighting elevated public debt, widening external imbalances, fiscal financing pressures, labour shortages and structural challenges affecting economic growth.
“The Opposition has been raising these concerns for three and a half years. What has changed is that the RBF and the IMF are now saying the same thing in official assessments that no amount of government spin can set aside,” she said.
Ms Kumar also questioned the Coalition Government’s fiscal policies, particularly decisions surrounding VAT and public debt.
She said the Government increased VAT from 9 per cent to 15 per cent in its first budget, citing debt repayment needs, before later reducing it to 12.5 per cent following public pressure.
According to Ms Kumar, consumers have not experienced corresponding reductions in prices and continue to face higher costs for food, transport, electricity and other essential services.
She further claimed that public debt is expected to exceed $11.3 billion by the end of July, while annual debt servicing costs have risen to $1.488 billion.
“The consequences are visible everywhere. Roads continue to deteriorate. Health services remain under strain. Skilled workers keep leaving,” she said.
Ms Kumar also referenced concerns raised by the Reserve Bank Governor regarding the impact of drug use and HIV on Fiji’s tourism industry.
Looking ahead to the national budget, she called on the Government to focus on reducing expenditure, restoring fiscal discipline and providing meaningful relief to households facing cost-of-living pressures.
“The institutions have spoken clearly. The only question now is whether this Government has the will to listen and act,” Ms Kumar said.
